Mr. Speaker, economic action plan 2013 announced the elimination of tariffs on babies’ clothing and certain sports and athletic equipment, providing $79 million annually in tariff relief. This measure comes with the expectation that wholesalers, distributors and retailers will fully pass these tariff savings on to Canadian consumers in the form of lower retail prices on the products covered by the measure. The government will be monitoring the impact of tariff reductions on the retail prices for these items over the coming months and is working with the Retail Council of Canada, consumer groups and other independent sources. This initiative will allow the government to assess whether tariff elimination can help narrow the price gap for consumers.
With respect to the general preferential tariff, the changes announced in economic action plan 2013 will be effective January 1, 2015. The modernized GPT will continue to promote economic growth and export diversification in the countries most in need of this type of assistance by providing tariff-based incentives for Canadian importers to source their goods from the remaining 103 eligible countries. GPT changes announced in economic action plan 2013 will accomplish the goal of better aligning the program to the current global economic reality.
The government’s monitoring of revenue is ongoing and will continue.