The Government of Canada has eliminated all remaining tariffs on machinery, equipment and inputs such as screws, electric motors and pipe fittings for industrial manufacturing.

This measure will benefit Canadian businesses by lowering the cost of imports used to produce manufactured goods, making Canada a more attractive place to do business. When the tariff elimination measure was first announced in Budget 2010, the Government estimated that it could create 12,000 jobs across Canada.

Canada is the first G20 nation to eliminate all tariffs on machinery, equipment and inputs used in the industrial manufacturing sector. Manufacturing companies invested $14.7 billion in the Canadian economy in 2014.

Since 2009, more than 1,800 tariffs have been eliminated in the industrial manufacturing sector. This announcement will specifically benefit small and medium-sized businesses that rely on global supply chains and are looking to diversify their export markets. These changes will provide $450 million in annual tax relief for Canadian manufacturers.

The elimination of all tariffs on imported goods and equipment, along with other tax measures, is providing Canadian manufacturers with a significant competitive advantage, says Jayson Myers, President and CEO, Canadian Manufacturers & Exporters. Manufacturers across the country are using these tax savings to invest in innovation, growth and jobs.

Having access to global trade opportunities is an important source of competitive strength for Canadian businesses. Eliminating tariffs reduces import costs, allowing businesses to enhance their stock of equipment and improve their access to domestic and foreign markets.