General Preferential Tariff Eligibility Changes

Summary#

The General Preferential Tariff Withdrawal and Extension (2023 GPT Review) Order removes tariff-preference access for a group of countries and restores it for two others. The change takes effect on January 1, 2025 and updates the entries in the Customs Tariff schedule.

What it does#

• Withdraws entitlement to the General Preferential Tariff (GPT) for goods originating in:
  • Armenia
  • Belize
  • British Virgin Islands
  • Fiji
  • Georgia
  • Guatemala
  • Guyana
  • Iraq
  • Marshall Islands
  • Moldova
  • Nauru
  • Paraguay
  • Tonga
  • Turkmenistan
  • Tuvalu
  • Vietnam
• Extends GPT entitlement to goods originating in Lebanon and Tunisia.
• Exempts goods that were already in transit to Canada before January 1, 2025 from the withdrawal.
• Updates the schedule to the Customs Tariff to remove or add the GPT marker for the affected countries.
• Comes into force on January 1, 2025.

Note: The government’s regulatory statement says this order is part of a broader package of updates to Canada’s non‑reciprocal tariff preference programs. Those other changes (to least‑developed country lists, apparel rules of origin, shipment documentation, and a regional Caribbean tariff) are described in the regulatory material, but this specific order only changes GPT entitlement for the named countries.

Who's affected#

• Exporters and producers in the countries removed from GPT: exporters in Armenia, Belize, British Virgin Islands, Fiji, Georgia, Guatemala, Guyana, Iraq, Marshall Islands, Moldova, Nauru, Paraguay, Tonga, Turkmenistan, Tuvalu, and Vietnam.
• Exporters and producers in Lebanon and Tunisia, who regain GPT access.
• Canadian importers, retailers, and wholesalers who buy goods from those countries.
• Customs brokers and logistics firms that handle import paperwork and shipping into Canada.
• Canadian consumers may notice price or availability changes for some products depending on how businesses respond.

If you want to know which specific products will see big changes, that is not spelled out in the order — it applies to goods originating in those countries generally. Actual tariffs will depend on Canada’s existing tariff schedules for each product.

Why it matters#

• Losing GPT access usually means imports from the removed countries will face higher tariffs (the MFN rate) than under GPT. That can raise costs for Canadian importers and, potentially, prices for consumers.
• Restoring GPT for Lebanon and Tunisia gives exporters there easier access to the Canadian market and may encourage trade and investment.
• The government estimates a net effect on tariff revenues of about $40.1 million annually over 2025–2029 from the whole package of program updates (most of that tied to other changes such as apparel rules of origin). Small businesses are not expected to be specially disadvantaged, according to the analysis.
• These changes are part of a wider renewal of Canada’s non‑reciprocal tariff preference programs under the Budget Implementation Act, 2023, No. 1, which extends those programs to December 31, 2034 and includes other technical updates intended to make the programs easier to use.
• The lead‑time to January 1, 2025 gives businesses time to adjust supply chains and paperwork before the changes take effect.