Canada will withdraw the customs tasks imposed so far on American products that meet the conditions of the North American Free Trade Agreement (Aceum), announced Prime Minister Mark Carney on Friday, August 22, a gesture that responds to exemptions at the beginning of the month by Washington on Canadian products.
At a press conference the day after a telephone bag with the US president, Donald Trump, Mark Carney said that on September 1 his country “will eliminate (TI) customs duties on US products”, to meet the conditions planned by the United States-Mexico Canadá-Etats treated, while Ottawa and Washington accelerated their broader commercial agreement.
This decision was well received by Donald Trump, questioned a few moments later by the White House press.
According to the Canadian Prime Minister, the recent negotiation executives with the end of the trade agreements signed by Washington with several of its partners, including the European Union (EU) and Japan, are, above all, a way of “buying a right of access to the world leader.”
An average effective tax rate of 5.6%
For Canada, which has not yet been able to agree with its neighbor, the average effective rate applied to Canadian products is 5.6%, because “85% of our products are not taxed”, to the extent that they leave in the United States as part of Alyum, he said.
Donald Trump applied 30% of customs tasks to Canadian products, but by granting an exemption to almost all products that enter the United States in accordance with the provisions of the Free Trade Agreement.
This exemption remained in early August in the entry into force of customs duties presented by the US president as “reciprocal” and who are addressed to the main commercial partners of the United States. A gesture qualified as essential by Mark Carney, which explains Ottawa’s desire to apply the same exemption in American products as of September 1.
“But it also comes for a while in the party (where) wishes to obtain,” he said, emphasizing that his government is now focused on signing an agreement that offered a long -term benefit for the Canadian economy.
Source: BFM TV
