Minister of Finance Ralph Goodale and Minister of Industry David L. Emerson have announced a number of
initiatives designed to help Canada's textile and apparel industries better compete in changing world markets.
"Canadian textile and apparel companies face a challenging global trade environment," said
Minister Goodale. "These challenges will only increase on January 1, 2005, when international trade agreements oblige countries to eliminate any remaining textile and apparel quotas. The measures announced today
will help provide these two industries with the tools needed to lower costs and invest in competitiveness through a focus on productivity improvements, new products and market opportunities."
According to the announcement, the Government of Canada will:
Eliminate tariffs on fibre and yarn imports (worth up to $15 million per year) and on imports of textile inputs used by the apparel industry (worth up
to $75 million per year), effective January 1, 2005.
Provide $50 million in additional funding to the Textile Production Efficiency Component (CANtex) over the next five years to encourage Canadian textile
companies to shift to higher value-added products, focus on niche markets and improve productivity.
Extend current duty remission orders benefiting textile and apparel manufacturers for five years, gradually
phasing out benefits over the final three years.
"Increasing CANtex funding to more than $70 million over five years will help Canadian manufacturers, in particular those of textiles for the downstream
apparel market, diversify production towards new product lines and growing niche markets," said Minister Emerson. "The Government is committed to the long-term viability of both the apparel and textile
industries in Canada, as evidenced through the success of the measures already implemented, as well as those announced today."
To help ensure tariff relief does not adversely affect current domestic
production, tariffs will remain on imports of fibres, yarns and textiles also produced in Canada. The Minister of Finance will ask the Canadian International Trade Tribunal, an independent body responsible for providing
advice on economic- and tariff-related matters, to consult with the textile industry to identify textile products currently produced in Canada. Once this consultation is complete and final decisions are implemented,
importers will be able to request a refund of duties paid since January 1, 2005, on imports of fibre, yarn and textile products that are not currently manufactured in Canada.
CANtex encourages companies to
improve productivity through projects such as lean manufacturing and the implementation of new information technology and logistics systems. Starting in fiscal year 2005/06, the additional funding is intended to
encourage excellence and competitiveness in the manufacture of technical, specialty and industrial textiles, including assisting manufacturers producing textiles for the traditional apparel sector to reorient production
to other textile product markets. CANtex will allow companies to apply for up to $3 million in repayable contributions for projects including equipment and machinery acquisition.
Over the next few years the
Government will review the current administration of the duty remission orders program and revise it as necessary to address any problems.
The measures announced are designed to address the findings of the
October 2004 Report of the Standing Committee on Finance, Duty Remission and the Zero-Rating of Tariffs on Textile Inputs: The Canadian Apparel Industry. They are in addition to over $70 million in federal support for
the textile and apparel industries over the past two years, and will more than triple the annual level of assistance to these industries. |
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