CPTPP Tariff Extended to Peru

Summary#

The Order Amending the Schedule to the Customs Tariff (Extension of a CPTPP Tariff to Peru) adds Peru to the list of countries whose goods can use the tariff breaks in the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP). The Order takes effect on the day the CPTPP comes into force between Canada and Peru (the Agreement entered into force for Peru on September 19, 2021).

What it does#

• Adds Peru to the Customs Tariff schedule so eligible goods from Peru can get CPTPP tariff treatment.
• Lets Canadian importers claim the lower CPTPP tariffs on originating goods from Peru instead of higher default tariffs.
• Does not change customs paperwork or introduce new forms.
• Directs the Canada Border Services Agency (CBSA) to update systems and administer the change in the normal course.

Who's affected#

• Importers who buy goods that originate in Peru.
• Canadian exporters who sell into CPTPP markets (they may face more competition but also get clearer rules across the partnership).
• Small businesses buying from or selling to CPTPP partners, including Indigenous businesses that import eligible goods.
• The Canada Border Services Agency (CBSA) and the Department of Finance, which administer and monitor the change.
• Specific industries likely to notice effects include agriculture and agri‑food, fish and seafood, forestry, services, and various industrial goods.

Why it matters#

• It lowers duties on qualifying products from Peru, reducing import costs for Canadian buyers.
• The regulatory analysis estimates Canada's annual duties foregone once commitments are fully implemented at about $652 million.
• Longer-term modelling projects possible economic gains for Canada of about $4.2 billion by 2040 if the CPTPP is fully in force for all members.
• When fully implemented across all CPTPP parties, 99% of tariff lines would be duty‑free, covering about 98.1% of Canada’s average annual exports to CPTPP markets (roughly $32 billion).
• The change is administrative: it implements Canada’s existing trade commitment under the CPTPP rather than creating new rules or paperwork.