End of Canadian surtax on beef, pork and gherkins from the European Union

The Government of Canada repealed the European Union Surtax Order which has imposed, since August 1999, a 100% duty on certain meat products (beef and pork) and gherkins originating from 15 countries of the European Union (EU).

The measure, authorized by the World Trade Organization, was in retaliation against an EU ban on imports of Canadian meat derived from cattle treated with growth-promoting hormones.

In March of this year a Memorandum of Understanding was signed between Canada and the European Commission, providing compensation to Canada for the EU's ban on imports of beef from animals treated with growth-promoting hormones.

Pursuant to the Memorandum of Understanding the EU is to provide compensation to Canada in the form of duty-free access for certain quantities of hormone-free beef exported from Canada and Canada is to remove the surtax currently imposed on certain products of beef, pork and gherkins imported from the EU.

The compensation provided to Canada by the EU will allow Canadian beef exporters to gain better access into the EU market for an amount of exports that is commensurate to the value of imports on which Canada is to remove its retaliatory surtax ($11.3 million).

The Canada Border Services Agency will ensure that the surtax is no longer applied. The Department of Foreign Affairs and International Trade, which is responsible for the administration of the Export and Import Permits Act, will no longer be issuing import permits for the item of schedule 2 of the European Union Surtax Order and this item will be removed from the Import Control List.