Legislating and regulating seems much easier in parliamentary systems. As the U.S. starts considering the competing Russia MFN withdrawal bills I've been discussing the past couple of days, Canada just went ahead and withdrew the MFN status of Russia and Belarus. This is what Deputy Prime Minister Chrystia Freeland had to say:
Today, I'm announcing that Canada will be the first country to revoke Russia's and Belarus's most favored nation status as a trading partner under Canadian law. We are working closely with our partners and allies to encourage them to take the same step. Simply put, this means that Russia and Belarus will no longer receive the benefits, particularly low tariffs that Canada offers to other countries that are fellow members of the WTO. Instead, Russia and Belarus will be subject to a tariff of 35% on their exports to Canada. The only other country that does not enjoy MFN status with Canada is North Korea.
And this is from the official announcement:
Russia’s invasion of Ukraine, supported by Belarus, is a violation of international law and threat to the rules-based international order. Canada is taking further action to ensure those who do not support the rules-based international order cannot benefit from it.
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and The Honourable Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, announced that the Government of Canada has issued the Most-Favoured-Nation Tariff Withdrawal Order (2022-1), removing these countries’ entitlement to the Most-Favoured-Nation Tariff (MFN) treatment under the Customs Tariff.
This Order results in the application of the General Tariff for goods imported into Canada that originate from Russia or Belarus. Under the General Tariff, a tariff rate of 35 per cent will now be applicable on virtually all of these imports. Russia and Belarus will join North Korea as the only countries whose imports are subject to the General Tariff.
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This measure has been taken under section 31 of the Customs Tariff, and applies for 180 days, unless extended by a resolution adopted by both Houses of Parliament.
A tariff rate of 35 per cent will apply to virtually all imports. Where MFN rates are higher, the higher rates will continue to apply.
Section 31 of the Customs Tariff says:
Extension or withdrawal of entitlement
31 (1) The Governor in Council may, on the recommendation of the Minister, by order, amend the schedule to
(a) extend entitlement to the Most-Favoured-Nation Tariff to any goods that originate in a country to which the General Tariff applies;
(b) withdraw entitlement to the Most-Favoured-Nation Tariff from any goods that originate in a country that is entitled to that Tariff and make those goods subject to the General Tariff; and
(c) indicate, to the extent required, the tariff treatment of the country to which the order applies.
Contents of order
(2) An order made under subsection (1) must
(a) specify the date on which the order becomes effective;
(b) if the order partially extends entitlement to the Most-Favoured-Nation Tariff, indicate the goods to which entitlement to that Tariff is extended; and
(c) if the order partially withdraws entitlement to the Most-Favoured-Nation Tariff, indicate the goods that are made subject to the General Tariff.
