MFN Tariff Withdrawal for Russia and Belarus

Summary#

The federal government registered the Most-Favoured-Nation Tariff Withdrawal Order (2022-2) on October 7, 2022. It keeps Most‑Favoured‑Nation (MFN) tariff treatment withdrawn for most goods from Russia and Belarus, but makes an explicit exception for goods in tariff item No. 2844.43.00 (which includes the isotope cobalt-60), so those imports avoid the higher tariff.

What it does#

• Withdraws MFN tariff treatment for goods originating in Russia and Belarus, which means most of those goods are subject to the General Tariff of 35% instead of the usual MFN rates.
• Exempts goods classed under tariff item No. 2844.43.00 (including cobalt-60) from that withdrawal. Those goods keep MFN treatment and are not hit with the 35% General Tariff.
• Repeals the earlier Most‑Favoured‑Nation Tariff Withdrawal Order (2022‑1) and replaces it with this new order.
• Technical changes are made to the Customs Tariff schedule to reflect the withdrawal and the exemption.
• The order was registered on October 7, 2022. Most of the withdrawal measures in the order come into force at 00:00:00 a.m. Eastern Daylight Time on the day after registration. An order made under the relevant Customs Tariff provision will expire after 180 days unless Parliament approves it.

Who's affected#

• Importers and traders bringing goods from Russia and Belarus. Most of their imports now face the 35% General Tariff.
• Medical suppliers, hospitals, device makers, and sterilization service providers who rely on cobalt-60. The order protects their supply from the higher tariff.
• Small businesses that import affected goods may see higher costs for most Russian and Belarusian products.
• The Canada Border Services Agency will apply and administer these tariff changes at the border.
• Trade and finance officials (for example, the Department of Finance) and customs specialists who manage sourcing and supply chains.
• Based on recent trade figures cited by the government, goods under tariff item No. 2844.43.00 made up about $8.1 million of annual average imports from Russia and Belarus, out of about $1.8 billion in total annual average imports from those countries. Excluding that tariff item from the General Tariff is expected to reduce tariff revenue by about $2.8 million per year (based on past trade levels).

Why it matters#

• The move keeps pressure on Russia and Belarus by keeping higher tariffs in place for most of their exports to Canada. That is meant to encourage Canadian importers to find other suppliers.
• At the same time, it avoids imposing big extra costs or supply risks on a critical medical input, cobalt-60, which is widely used for sterilizing medical equipment and has few short‑term substitutes. That helps protect health services and medical product supply chains.
• In practice, Canada already saw a sharp drop in imports from these two countries (around 90% in July 2022 versus July 2021). The exemption for cobalt-60 is a targeted, limited change to prevent harm to health-sector supply chains while keeping broader trade pressure in place.
• The measure is temporary unless approved by Parliament beyond 180 days, so it may change again depending on political and supply-chain developments.