Canadian shipbuilders at odds with government’s proposal to drop tariffs

The Shipyards General Workers Federation has warned that the Canadian Federal Government’s proposal to drop a 25 percent tariff on foreign-built cargo ships and ferries would harm the Canadian shipbuilding sector. In early November, the Federal Department of Finance proposed to waive the 25 percent customs duty payment on imported cargo vessels with an overall length over 129 metres. The duty was first introduced 30 years ago to encourage Canadian carriers to place vessel orders at local shipyards; however Canadian builders have been unable to compete with the lower prices available overseas, particularly in Asia. The Department of Finance proposed a remission order to be put in place to remit customs duties paid on or after January 1, 2010.