Government Response to Working Group on Textiles and Apparel – Tariff Reductions

In 2003, a joint Government-Industry Working Group on Textiles and Apparel established by the Government of Canada to discuss competitiveness issues facing the industries held a number of meetings that resulted in recommendations for action by the Government.

In addition to asking the Government to work to preserve Canadian access to the U.S. apparel and textile markets, to enhance the Canadian Apparel and Textile Industries Program (CATIP), and to support Canadian apparel and textile firms through branding and export development initiatives, the apparel members of the Working Group requested that tariffs be reduced on imported textile products used in domestic apparel production. The Government has responded with a committment to provide tariff reductions with an approximate value of $26.7 million over the next three years, and will generate an ongoing reduction in duties paid beyond this period. It is intended to concentrate these tariff reductions on textile products not manufactured in Canada.

In this regard, the Minister of Finance has recently requested that the Canadian International Trade Tribunal conduct an inquiry to identify, by October 31, 2004, Canadian-made textile products that are used in the production of apparel in Canada.. The information resulting from the inquiry will be important in implementing the announced tariff relief. The text of the Canadian International Trade Tribunal Reference can be found at CITT - References - Notices.