Vol. 145, No. 17 — August 17, 2011
SOR/2011-157 July 29, 2011
ARCHIVED — Order Amending the Import Control List and Repealing the European Union Surtax Order
P.C. 2011-831 July 29, 2011
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance and the Minister of Foreign Affairs, pursuant to sections 53 and 79 (see footnote a) of the Customs Tariff (see footnote b), hereby makes the annexed Order Amending the Import Control List and Repealing the European Union Surtax Order.
ORDER AMENDING THE IMPORT CONTROL LIST
AND REPEALING THE EUROPEAN
UNION SURTAX ORDER
1. Item 194 of the Import Control List (see footnote 1) is repealed.
2. The European Union Surtax Order (see footnote 2) is repealed.
COMING INTO FORCE
3. This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issue and objectives
The European Union Surtax Order (the Surtax Order) came into force in August 1999 following the authorization granted to Canada by the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) to retaliate against a European Union (EU) ban on imports of Canadian meat derived from cattle treated with growth-promoting hormones. The Surtax Order imposes a 100% duty on certain meat products (beef and pork) and gherkins originating from 15 countries of the EU. It was to remain in place for as long as the EU did not implement the WTO DSB ruling on beef hormones or provide satisfactory compensation to Canada.
On March 17, 2011, a Memorandum of Understanding was signed between Canada and the European Commission, providing compensation to Canada for the EU’s ban on imports of beef from animals treated with growth-promoting hormones. The Order Amending the Import Control List and Repealing the European Union Surtax Order is needed to remove the retaliatory surtax that Canada imposes on EU imports of beef, pork and gherkins.
Description and rationale
Pursuant to the Memorandum of Understanding reached between Canada and the European Commission to resolve the Canada-EU WTO trade dispute, the EU is to provide compensation to Canada in the form of duty-free access for certain quantities of hormone-free beef exported from Canada and Canada is to remove the surtax currently imposed on certain products of beef, pork and gherkins imported from the EU.
The compensation provided to Canada by the EU will allow Canadian beef exporters to gain better access into the EU market for an amount of exports that is commensurate to the value of imports on which Canada is to remove its retaliatory surtax ($11.3 million).
Representatives of the Canadian beef industry were consulted throughout the discussions leading to the Memorandum of Understanding with the European Commission and are supportive of its results. The Department of Foreign Affairs and International Trade and Agriculture and Agri-Food Canada have also informed other interested stakeholders of the outcome of the arrangement reached with the European Commission.
Implementation, enforcement and service standards
The Canada Border Services Agency will ensure that the Order is enforced and that the surtax imposed pursuant to the European Union Surtax Order is no longer applied. The Department of Foreign Affairs and International Trade, which is responsible for the administration of the Export and Import Permits Act, will no longer be issuing import permits for the item of schedule 2 of the European Union Surtax Order and this item will be removed from the Import Control List.
International Trade Policy Division
Department of Finance
S.C. 2009, c. 16, subpar. 56(16)(b)(ii)
S.C. 1997, c. 36
C.R.C., c. 604