Tariffs. Customs. Trade Remedies

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Canada

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On December 5, 2018, the Canada Border Services Agency (CBSA) issued Customs Notice 18-22 Implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which announces that the CPTPP will be implemented in Canada, Australia, Japan, Mexico, New Zealand and Singapore on December 30, 2018. Additionally, the Agreement will enter into force for Vietnam on January 14, 2019. With the exception of a few agricultural goods, the CPTPP will essentially eliminate the customs duties on all qualifying imports into Canada from a country for which the CPTPP is in force (“CPTPP country”), either immediately upon implementation of the agreement, or through a tariff phase-out. At the time of issuance of CN 18-22, not all CPTPP member countries will have completed their domestic ratification process and identified an implementation date. As the remaining CPTPP member countries reach ratification and confirm an implementation date, a separate customs notice will be issued. The text of the CPTPP is available at the Global Affairs website.

On November 30, 2018, the United States, Mexico, Canada signed a new trade agreement (referred to by the US as the USMCA) intended to replace the North American Free Trade Agreement.  It is understood that at the signing ceremony, US President Trump, Mexican President Peña Nieto and the Canadian Prime Minister Trudeau signed an authorization for Canadian Foreign Affairs Minister Chrystia Freeland, US Trade Representative Bob Lighthizer, and Mexican Secretary of the Economy Ildefonso Guajardo to sign the actual agreement. The agreement was signed by the outgoing Mexican administration on President Peña Nieto’s last day in office.

On 12 November 2018 the Vietnam National Assembly officially ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”). The agreement has already been ratified by Australia, Canada, Japan, Mexico, New Zealand and Singapore and it will enter into force on 30 December 2018 in those countries.

On 25 October 2018, New Zealand formally ratified the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) bringing the number of ratifications to four. Canada cleared its last legislative hurdle when the Senate approved it on October 25 and Royal Assent was given the same day. Canada became the fifth to ratify when it notified New Zealand of its ratification on October 29, 2018. The Australian House and Senate also approved it and sent it to the Governor General who has given Royal Assent.

The Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) is moving forward and has gained momentum recently as Japan, Singapore and Mexico have ratified the 11-party agreement and Australia’s ratification is imminent because the deal recently passed both Houses of Parliament.  Canada is closing in on ratification as well.

In response to the imposition of the United States’ tariffs on Canadian steel and aluminum, the Government of Canada applied reciprocal countermeasures on imports of steel, aluminum, and other products from the US, beginning on July 1, 2018. The Government recognizes that the Canadian countermeasures can create challenges for Canadian manufacturers that rely on steel and aluminum imported from the US. This imported steel and aluminum is used in many of Canada’s major industries, including energy, advanced manufacturing, construction, and automotive parts. On October 11, 2018, the Government outlined a framework that allows the Government to consider providing targeted relief from Canada’s countermeasures in the following instances: