Canadian Retailer - Summer 2013 - 12

RETAIL: AT ISSUE

retail council of
canada instruMental in
eliMination of tariffs

association influences inclusion of tariff “pilot project”
in latest federal budget
BY SEAN C. TARRY
RETAIL COUNCIL OF CANADA (RCC)
has been advocating on behalf of the
industry for years regarding the negative impact of outdated product tariffs on the country’s merchants, and
the Canadian economy in general.
Throughout the association’s efforts, it
has maintained that many of the tariffs on products entering the country
only serve to hinder the retailer, and
the customer, while helping to create
a seismic discrepancy between Canadian and U.S. pricing.
RCC is extremely pleased with elements of the federal government’s latest Budget, tabled in March of this year, which
includes the elimination of tariffs on baby clothes and sporting and athletic equipment. These tariff changes are part of a
“ pilot project” between RCC and the Department of Finance
which could serve as a springboard for the eventual elimination of further tariffs and begin to help retailers better compete in the Canadian market.
The “pilot project” is the culmination of cooperation and
work between RCC and the Department of Finance and comes
in the wake of a Senate Committee study into the reasons for
the price differences between Canada and the U.S. with the objective of, “reducing the price discrepancies for certain products between Canada and the United States."
"We thank Minister Flaherty and his officials for working
with us this past year to review some of the outdated, and unnecessary tariffs that still exist in Canada,” said Diane J. Brisebois, president and CEO, RCC. "While there is still a lot of work
to be done in this area, we are very pleased to see this first step
toward leveling the playing field for Canadian retailers.”
The elimination of tariffs on the import of baby clothes and
sporting and athletic equipment is a sizeable victory for Canadian retailers. And, while the announcement doesn’t address
the entire basket of goods that are subject to high tariffs, the

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canadian retailer | summer 2013 | www.retailcouncil.org/cdnretailer

association believes that it’s a good start and
the government’s recognition that tariffs are
one of the key reasons for price differences in
Canada for some products. The announcement
also provides a potential springboard for the
future elimination of tariffs on other products.
“It's going to be very interesting to see what
the elimination of these tariffs mean to the
marketplace,” explains Karen Proud, vicepresident, federal government relations, RCC.
“The progress and impact of our advocacy
efforts related to this issue going forward
will greatly depend on whether or not prices
change when these products are reordered
by retailers. If we can demonstrate that the
savings are passed on to the consumer, we’re
going to request further tariff elimination for
next year’s budget.”
For more information concerning RCC’s
advocacy concerning the elimination of outdated tariffs in Canada, contact Devon Pool,
Retail Council of Canada, 416 922-0553
ext. 241 or dpool@retailcouncil.org.

http://www.retailcouncil.org/cdnretailer

Canadian Retailer - Summer 2013

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