The Canadian government will no longer impose tariffs on imported baby clothes and selected sports equipment. Royal assent has been given to Bill C-60, the Economic Action Plan 2013 Act, No. 1. Division 1 of Part 3 of that legislation makes the changes to the tariff.
“Elimination of these tariffs, which added as much as 18 percent to the cost of baby clothes and sporting goods, is yet another reason why Canada holds so much potential for U.S. businesses,” said John T. Costanzo, president of Purolator International, a logistics provider for U.S.-Canada shipments, in a written statement. “Canada’s favorable economic climate, strong dollar and pro-trade policies already provide many excellent incentives for U.S. businesses interested in joining the export ranks.”
The move came following complaints from Canadian consumers about the high cost of consumer goods in Canada, especially when compared with identical items sold in the U.S., Purolator said. The elimination of tariffs on these products is considered a “test” by government officials, who want to see if the end result is a noticeable reduction in consumer prices. If successful, the tariff rollback may be extended to additional consumer products.