Canada may extend no-tariff provision to LDCs by 10 years

02 May '13

2 min read

The Government of Canada is planning to extend the no-tariff provision for another 10 years to the Least Developed Countries (LDC) identified by the United Nations, which includes leading textile and garment manufacturing countries such as Bangladesh, Nepal, Cambodia and Myanmar.

A decade ago, Canadian Government dropped the then existing duty on textiles and clothing made in LDCs. The Government had also removed restrictions on the volume of goods that can be imported from these countries.

Subsequently, as part of the 2010 Federal Budget, the Canadian Government announced the elimination of duties on imported raw materials, which includes substantial reductions in duties on textiles, from the Least-Developed-Countries.

Speaking to fibre2fashion, executive director of Canadian Apparel Federation, Mr. Bob Kirke said, “Canadian Government has indicated its intention to extend the customs duty reduction to the LDCs for another 10 years. However, the regulation needs to be passed by the Parliament before it can come into effect.”

“The LDCs need to sign a memorandum of understanding with Canada in order to avail the duty-free export benefits to the country,” he informs.

As of today, the regulation is yet to be tabled in the house. If the extension is passed, it will result in maintaining the status quo, according to Mr. Kirke.

"The LDCs identified by the UN will benefit from the Canadian no-tariff provisions. However, in view of the recent events in Bangladesh, the politics of the issue may change," he mentions.

Fibre2fashion News Desk - India

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