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Canada considers review of GPT for developing countries
Jan '13
The Government of Canada is considering review of its General Preferential Tariff (GPT) program, under which it provides duty-free entry to several products from about 175 developing countries and customs territories.
Under the GPT program, introduced in 1974, Canada unilaterally provides preferential or reduced tariffs on about three-quarters of goods imported from several developing countries. While some other products face tariffs that are lower than the Most Favoured Nation (MFN) rates applicable to exports from most developed countries, most textiles and apparels from developing countries do not enjoy GPT benefit.
The GPT is set to expire on June 30, 2014 and the Canadian Government is currently soliciting views from the Canadian public on the matter. It intends to release a new finalized list that reflects the shifts in the income levels and trade competitiveness of certain countries that has taken place over the years.
It is likely that the GPT benefit will be withdrawn from about 70 countries that are classified as “high income” or “Upper-middle income” countries by the World Bank for two consecutive years, or have had a share of equal to or greater than one percent of world exports for two consecutive years. It means that countries like China, India, Turkey, Malaysia, Mexico, Colombia, Thailand, Indonesia, Mexico, Tunisia and Dominican Republic may  no longer be able to get benefit of GPT for their exports to Canada from July 1, 2014.. 
However, the GPT facility may continue for countries like the Philippines, Vietnam, Cambodia, Bangladesh, Haiti, Pakistan, Sri Lanka and Egypt.

Fibre2fashion News Desk - India

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