Question

Canada's philosophy on import tariffs and export restrictions

Answer 1

Canada has a free trade policy for most of the products both for import and export. Free trade policy means that goods can be imported to Canada or exported to other countries manufactured in Canada without major restrictions. The country actively participates in international trade and do business with a lot of countries. It has several exceptional trade relations with different countries, such as the US and Australia. Canada had a preferential tariff for doing business with China earlier especially the imports from China, but since 2015 it is no longer valid. As China is one of the major exporters in the world market, it enjoys preferential tariffs from a lot of countries.

Canada has its own consumer protection law and several requirements regarding the quality and ingredients of the products imported to the country. In order for its consumers not to get cheated, the country requires several declarations regarding the imported products that should be mentioned in the labelling and ingredient section of the products. Several products require import licences, but that is only applicable for a few products but most of the products are freely imported.

But there are restricted items the importation of which is not allowed in the country. Those items include arms and ammunitions, steel and aluminium, clothing and textile, several dairy and poultry products and endangered species. As Canada has a good supply chain in place for food products within the country, and farming is also practised within the country, it avoids importing such products. For importation of food and alcohol in Canada, it requires the manufacturer of those items to details the contents of the products and has several restrictions so as not to affect the health of the consumers. Products like alcohol, marijuana and certain other products need to be sold only to the people not falling within the restricted age group.

Canada is very cautious about the people of the country and thus medicines that are imported, has to go through a lot of checks, and if any food item is used as a medication for something, it is not allowed to be imported to Canada. But the country let the manufacturing sector import whatever they need for further manufacturing processes, including raw materials and equipment. Only the products, the consumption of which can adversely affect the health and well-being of the citizens of the country, face several restrictions. Except for these restrictions for other products, importation is really easy in Canada, most of the products do not even require import licences in order for them to be imported within the country.

Since Canada is one of the major exporters for the automobile industry, it has several restrictions in the importation of vehicles. It earns a huge income and a major contribution to its GDP comes from the exportation of vehicles, pharmaceutical products and other metal and mining products also includes highly valued metals like gold and zinc. The country is a major exporter of equipment and products of the automotive industry. Vehicles including, cars, helicopters, aeroplanes, are the major products that are exported from the country.

Products like seafood, fishery, arms and ammunition, food products, and several other products, face control regulation during export from Canada. Products with high sugar content and pharmaceutical products also have several regulations for export. The products need to fulfil standardization requirement in order to get exported. Here food includes cat and dog food as well.

Canada is one of the most developed countries in the world and has excelled in different heavy industries like vehicle and machinery, gas and petroleum, mining products and metals as well as the primary sector which includes farming, textile and clothing. As the country excels in the production of such commodities, it prefers to regulate the import on the same products. Although Canada import vehicles and machinery from the US and a few other countries, such imports have some control in place. The imports go through several checks and require documental proof and declaration of the ingredients and labelling.

In case any importer or exporter fails to comply with the requirements for the export or import, as it includes submission of documents, payment of certain taxes like excise duty and sales tax unless otherwise exempted, a declaration regarding the product quality and usage, in the instance of compliance failure, the exporters and importers are liable to pay penalty to the Canadian Government.

From the above discussion, we can conclude that Canada has a liberal policy regarding exports and imports and an active participant in the world trade. Canada is one of the most developed countries and is a major exporter of the automobile, petroleum, and pharmaceutical products. It also excels in farming and poultry, therefore has several restrictions in place for the importation of the same in order to protect its own firms and businesses. For products which can be harmful to the citizens of the country like alcohol, firearms, and several medical products and food, the country has imposed regulations for the importation of such products and requires documental proof certifying the quality and ingredients of such products. Although most of the items can be freely imported and exported, certain items require licences. In order for the exporters and importers not to be penalized by the Canadian Government, they should comply with the compliance requirements while doing their business. It has certain taxes that are to be paid during imports on products unless are exempted products. The country performs business with the US and Australia as major participants. And Canada is one of the major exporters for the automotive industry in the world.