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SOURCE Retail Council of Canada
OTTAWA, March 22, 2013 /CNW/ - Retail Council of Canada (RCC) applauds
Minister Flaherty for tabling a budget that will begin to help
retailers better compete in the Canadian market.
"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past year to review some of the outdated, and unnecessary tariffs that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."
In the Fall of 2011, Minister Flaherty asked the Senate Committee on
National Finance to study the reasons for the price differences between
Canada and the US. On February 6 of this year, the Senate released its
report where, among other things, it recommended the government review
tariffs, "with the objective of reducing the price discrepancies for
certain products between Canada and the United States."
During the course of the Senate study, RCC worked with the Department of
Finance on a "pilot project" to identify specific tariff items as
priorities for review. "We looked at areas where there were high
tariffs; where there was little to no domestic production; and where we
felt that we were aligned with other government initiatives," said
Brisebois. "What we came up with was a proposal for the elimination of
a number of tariffs, including those announced in yesterday's Economic
Action Plan. And while the announcement does not address the entire
basket of goods that are subject to high tariffs, it is a good start
and a demonstration of the government's recognition of one of the key
reasons for price differences in Canada."
According to the budget announcement, tariffs will be eliminated on baby
clothes and sporting and athletic equipment. The budget also
challenges wholesalers, distributors and retailers to pass the savings
on to consumers. "RCC is pleased to work with the Department of
Finance to monitor how the market reacts to these changes with the
intent to continue to push until all outdated and unnecessary tariffs
are eliminated," said Brisebois. "We are very encouraged by Minister
Flaherty's statements yesterday that clearly indicate his willingness
to do so."
Yesterday's budget also commits the government to ensuring that proposed
changes to the General Preferential Tariff (GPT) do not adversely
affect retailers who import textiles and apparel by amending the Rules
of Origin for Leased Developed Country Tariff Rules. "Changes to the
Rules of Origin are something that RCC had been advocating for," said
Brisebois. "There is still some work to be done with regards to the
proposed changes to the GPT but yesterday's announcement is a clear
signal from Minister Flaherty that he is listening to us and willing to
work to find solutions that help Canadian retailers compete in this
global environment."
Retail Council of Canada (www.retailcouncil.org) is the Voice of Retail. Founded in 1963, RCC is a not-for-profit
association which represents more than 45,000 stores of all retail
formats, including department, grocery, independent merchants, regional
and national specialty chains, and online merchants.
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