CPTPP Tariff Extended to Chile

Summary#

The Order Amending the Schedule to the Customs Tariff (Extension of a CPTPP Tariff to Chile) adds Chile to the list of countries eligible for the tariff treatment under the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP). The change took effect or is treated as having taken effect on February 21, 2023 so importers can claim the CPTPP preferential tariffs for qualifying goods from Chile.

What it does#

• Adds Chile to the Customs Tariff schedule so goods that qualify under the CPTPP can get the agreement’s lower tariff rates when imported into Canada.
• Requires the Canada Border Services Agency (CBSA) to update its systems and administer the new tariff entitlement in the normal course of customs work.
• Is a technical change to implement Canada’s existing CPTPP commitments after Chile completed ratification.

Who's affected#

• Canadian businesses and importers that buy goods originating in Chile.
• Industries likely to notice changes include agriculture and agri‑food, fisheries, forestry, services, and various industrial products.
• Small businesses that import from Chile may pay lower duties on qualifying goods.
• The CBSA will be responsible for updating procedures and monitoring compliance.
• It’s unclear if any groups beyond those above will notice direct effects; the order is narrowly about tariff treatment.

Why it matters#

• Importers of qualifying Chilean goods can now use the CPTPP preferential rates, which lowers the duties they pay and can reduce costs.
• This step completes a required administrative action after Chile ratified the CPTPP, so Canada meets its international commitment.
• When the CPTPP is fully in force for all members, Canada expects roughly $652 million in annual customs duties foregone across all partners and projected long‑term economic gains of about $4.2 billion by 2040. The Agreement would make about 99% of tariff lines duty‑free and cover about 98.1% of Canada’s average annual exports to CPTPP markets (about $32 billion) — figures that describe the broader CPTPP impact once all signatories are implemented, not just this order for Chile.