Preferential Market Access – Canada GSP

The Canadian Market Access Initiative for LDCs came into force on January 1, 2003. With few specific exclusions, all goods imported into Canada determined to be originating in an LDC are granted duty-free status.

Certain supply-managed agricultural products are excluded from duty-free and quota-free entitlement. Dairy, poultry and egg products originating in an LDC are not entitled to duty-free status.


Utilization by LDCs:

In 2017, Canada imported for US $ 2,873 million worth of goods from LDCs. At least 98.6 per cent of these goods entered the Canadian market duty and quota free. See also  Utilization of Canada’s DFQF scheme.

Available smooth transition procedures:

There are no explicit smooth transition provisions in the Canadian GSP scheme. However. Canada still extends DFQF access to Cape Verde and Samoa, which graduated in 2007 and 2014 respectively. Equatorial Guinea and Maldives are no longer entitled to preferential treatment, since they are categorized as Upper Middle Income countries. More about the eligibility criteria can be found here.

Resources:

  1. UNCTAD Handbook about GSP Canada 
  2. Guide for the Generalized System of Preferences-Canada
  3. ITC-International Trade Statistics