100% tariff on U.S. bakery imports looming

April 21, 2015, Toronto — The Baking Association of Canada (BAC) has been advised that the Canadian government is getting closer to making a final determination to impose retaliatory tariffs on the importation of U.S. bakery imports in tariff code 19.05 along with other imports. 

The tariffs on U.S. imports are in response to failure by the United States to comply with the World Trade Organization ruling on certain country of origin labelling (COOL) requirements for Canadian exports (primarily beef and pork). 

Canada developed and published a draft target list of targeted U.S. imports in June 2013 as part of the negotiating position in an effort to have the COOL requirements removed. The proposed tariffs under consideration will be extremely punitive, possibly as much as 100 per cent on the cost of the goods.

The imports for retaliation includes finished baked goods, ingredients and bakery mixes primarily falling under tariff  code 19.05: bread, pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products.

The full list of proposed tariff categories both food and non-food can be found here.

The BAC has been advised that while negotiations continue, they have yet to result in a change in the U.S. position.  The BAC has been asked to provide comments on the impact of tariffs on the baking sector prior to a final decision. In particular, the BAC is interested in what would be the business/consumer impact of such tariffs? Would Canadian bakery production be negatively affected, etc.?

BAC members wishing to express comments regarding the impact of the potential tariffs should contact Paul Hetherington at the BAC office via email: phetherington@baking.ca or phone at 1-888-674-2253, ext. 23. Please respond by Friday, April 24.