The Canadian Apparel Federation welcomed a major announcement on apparel industry issues made this week by
Finance Minister Ralph Goodale. The announcement included reductions in customs duties totaling $90 million on imported raw materials – such as fabrics – for use in the
manufacture of apparel in Canada and renewal of certain duty remission programs.
CAF President Elliot Lifson called the customs tariff cuts a significant step forward on the part of the Federal Government to assist the apparel industry in adapting to trade liberalization. On January 1, 2005 Canada and
other developed countries will eliminate all import quotas which limit clothing imports from developing countries, including China. The customs tariff cuts will assist the competitiveness of Canadian apparel manufacturers
who for many years have been paying customs duties on textile inputs no longer made in Canada.
CAF President Elliot Lifson welcomed the government’s recognition that the apparel industry can be competitive in the global economy when adequate industrial policy measures are in place.
“We have not asked the government for increased protection. We have not asked for a subsidy. We have simply asked the government to provide us with the tools to be competitive. We are gratified that they have done so to a very large extent,” said Mr. Lifson.
“Canadian firms can be successful in an increasingly competitive marketplace because they have a proven record of delivering quality, fashionable merchandise on a quick replenishment basis to their retail customers throughout North America. Eliminating duties on our raw materials
allows Canadian apparel manufacturers to do so on a cost-effective basis,” Mr. Lifson concluded.
Tariff relief on imported raw materials such as fabrics has been the central recommendation of the Canadian Apparel Federation. Submissions to the House of Commons Standing Committee on Finance, the Senate Standing Committee on Banking, Trade and Commerce, and most recently the House of Commons Standing Committee on Foreign Affairs and International Trade have all
reinforced this position.
As part of yesterday’s announcement the Canadian Government committed itself to eliminating customs duties paid on imported textiles used to manufacture apparel, effective January 1, 2005. The government will ask the
Canadian International Trade Tribunal (CITT) to provide advice on which products should not be duty-free.
CAF Executive Director Bob Kirke urged the government to expedite the reference to the CITT and ensure that this process works effectively and rapidly to address the needs of apparel manufacturers. “Because our manufacturers will continue to have to pay duties on imported fabrics until
the government implements the tariff cuts after receiving the report from the CITT sometime after January 1,2005, the government must ensure that the CITT process reflects the needs of apparel manufacturers and delivers its
recommendations by April 30, 2005 at the latest,” said Mr. Kirke.
