Experiment is Working -- Tariff Reductions Lead to Big Savings for Canadians

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February 6, 2014

Retail Council of Canada (RCC) released information today that demonstrates tariff reductions are paying off for Canadian consumers.  In Budget 2013, the Minister of Finance introduced an important pilot project on the reduction of customs tariffs, with the first step being the elimination of duties on baby clothes and most sports and athletic equipment.  As we approach the first anniversary of that important decision (March 21, 2013), RCC conducted a sampling of its members to assess the effectiveness of tariff reductions.

See examples below of reductions on common items:

“The elimination of these tariffs, which ranged from 2.5 per cent to as high as 20 per cent, has made a real difference to the prices paid on products bought and used every day by Canadians.” said Diane J. Brisebois, President & CEO of RCC. 

Highly-regarded Nielsen Canada has been contracted to conduct a study on the pass through of savings to Canadian consumers.  Nielsen, which is expected to report in fall 2014, is looking at a large number of items, measuring prices both before and after tariff elimination. 

“While the Nielsen study will be the definitive analysis of the effect of tariff reduction, RCC can say conclusively that the savings to consumers are already clear.  The Government made the right decision, for businesses and consumers alike,” Ms. Brisebois added.

RCC looks forward to working with the Government of Canada on future tariff reductions on a wide range of goods sold at retail. RCC will work to ensure that all players in the retail business, manufacturers, importers and wholesalers, join retailers in passing on savings leading to lower retail prices.

Retail Council of Canada is the Voice of Retail. Founded in 1963, RCC is a not-for-profit association which represents more than 45,000 stores of all retail formats, including department, grocery, independent merchants, regional and national specialty chains, and online merchants.

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For further information:
Devon Pool
Retail Council of Canada
[email protected]
416.801.3204