(May 13/15) The federal government is proposing a 100 per cent surtax on certain American food imports to Canada. Our food processing industry uses these ingredients to make products for the restaurant industry. Wine is also included, which can affect licensees that import Californian wines.
Why the surtax?
This proposal is in response to the U.S.’s Country of Origin Labelling (COOL) rule that discriminates against Canadian meat imports into the United States.
Canada could ask the World Trade Organization to approve its proposal by this summer.
How does it affect you?
The surtax will raise the price of affected food products, which can increase your food costs. Many imported ingredients – such as rice, cocoa, sugar, and ethyl alcohol – can’t be sourced in Canada due to climate, supply and demand, and/or the smaller size of the market.
Find out which imported U.S. food items are subject to the proposed surtax.