Canada’s Department of Finance is considering placing a 10-percent punitive tariff on olive oil imports. The duties would be imposed on imports falling under the 1509.10 tariff schedule and would apply to all countries with most-favored-nation status, primarily the E.U. Turkey and Morocco are eligible for preferential tariff treatment, so their imports would not be affected. Also, it would not apply to countries, such as the U.S., with whom Canada has trade agreements.
Below is the text of the notice printed by the Canadian government.
Invitation to submit views on a proposed increase in certain Most-Favoured-Nation (MFN) tariffs
On May 1, 2004, ten additional countries became members of the European Union (Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Cyprus and Malta). Their tariffs schedules were harmonized with the European Union schedule. In certain cases, this resulted in a less advantageous import regime for Canadian exports to these markets. Under WTO rules, Canada is entitled to seek compensation for this impairment.
Canada's preference is to negotiate a market access settlement with the European Union, and negotiations in this regard are on-going. However, should this not be possible, Canada has the right, under WTO rules, to withdraw concessions before August 1, 2005. To prepare for this possibility, the Government of Canada is seeking public comments on a proposal to increase MFN tariffs to a 10 percent ad valorem rate on the goods listed below. The European Union is by far the principal MFN supplier of these goods.
Tariff Item / Brief Product Description / Current MFN Rate of Duty
0406.40.10 / Blue-veined cheese / 3.32¢ per kg
1509.10.00 / Virgin olive oil / Free
2205.10.10 / Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances / 2.11¢ per litre
2208.20.00 / Spirits obtained by distilling grape wine or grape marc / Free
2201.10.00 / Mineral waters and aerated waters / Free
2208.50.00 / Gin and Geneva of absolute ethyl alcohol / 4.92¢ per litre
3501.10.90 / Casein — other / Free
The proposed increase in MFN tariffs would not affect imports originating in Canada's North American Free Trade Agreement partners, other bilateral free trade partners or countries eligible for existing preferential tariff treatments.
Contact person
Interested parties are invited to submit comments directly, in writing, by June 25, 2005, to Mr. Patrick Hines, International Trade Policy Division, Department of Finance, L'Esplanade Laurier, East Tower, 14th Floor, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 992-2518 (telephone), (613) 995-3843 (facsimile), Tariff-Tarif@fin.gc.ca (electronic mail).
Action
The NAOOA will submit comments opposing any implementation of tariffs on olive oil. NAOOA will cite olive oil’s health benefits and the fact that many consumers are choosing olive oil as a healthy alternative to other fats, something that could result in lower healthcare costs. NAOOA’s comments also will suggest the products targeted be products imported from the 10 new E.U. companies.
Canadian members are urged to send comments as well, as are U.S. members with offices in Canada or those doing business in Canada. Those submitting comments are asked to forward a copy to the NAOOA office as well so we can better monitor the situation.
