Canada Preparing To Impose Surtax on Imports from U.S.
October 11, 2013

The Canadian government announced that it is considering the application of a 100 percent retaliatory surtax on selected goods imported from the United States. The proposed surtax is Canada's response to its perception of the failure by the United States to implement World Trade Organization (WTO) rulings that held that U.S. Country of Origin Labelling (COOL) requirements under the 2008 Farm Bill violate their WTO obligations by discriminating against Canadian (and Mexican) livestock. 
 
The Canadian government has proposed that the following groups of products be subject to a 100 percent surtax:
 
live bovine and swine, as well as meats;
cheese;
apples, cherries, corn (maize) and potatoes;
fowl;
glucose and glucose syrup;
fructose and fructose syrup;
chocolate and food preparations containing cocoa;
pasta (including pasta cooked or stuffed with meat and other products);
prepared foods obtained from cereals, including breakfast cereals;
bread, pastry, cakes and biscuits;
frozen orange juice;
tomato ketchup and other tomato sauces;
wine;
spirits and ethyl alcohol;
sugars;
peptones and their derivatives;
protein substances;
jewelry and precious metals;
tubes, pipes and hollows;
parts of kitchen appliances, such as stoves, grates, cookers and barbecues;
grinding balls;
swivel seats;
wooden office furniture; and
mattresses.
A copy of the notice published in the Canada Gazette, as well as a list of the specific products and their tariff classification numbers, is available at www.gazette.gc.ca/rp-pr/p1/2013/2013-06-15/html/notice-avis-eng.html.