Canada - Potential 100% surtax on select U.S. imports 

March 5:  Canada may proceed with a100% surtax on select U.S. imports in the first half of 2015. The tax may affect Canadian businesses that import or export products.

This proposed measure is a result of the United State's refusal to change its country-of-origin labelling (COOL) in the U.S. 2008 Farm Bill, which Canada alleges discriminates against its livestock and violates World Trade Organization (WTO) obligations.

Canada published a list of U.S. imports on which it is prepared to impose the surtax in the first half of 2015 if the United States does not modify its COOL law, including the following products:

  • Corn
  • Ethyl alcohol and other spirits, denatured, of any strength
  • Live bovine animals
  • Live swine
  • Bread, pastry, cakes, biscuits, and other bakers' ware

Read a March 2014 report [PDF 53 KB] prepared by the KPMG member firm in Canada: Canadian Importers - Potential Canada-U.S. Trade Retaliation on Horizon

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich

(312) 665-1022

Andrew Siciliano

(631) 425-6057

John L. McLoughlin

(267) 256-2614

Todd R. Smith

(949) 885-5617

Luis A. Abad

(212) 954-3094

Amie Ahanchian

(202) 533-3247

Or your local KPMG Trade & Customs professional.

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