On July 4, 2016, Canada’s Trade Minister Freeland announced that Canada implemented the World Trade Organization (WTO) expanded Information Technology Agreement (ITA). Pursuant to the expanded ITA, signatories agreed to eliminate tariffs on 201 information and communication technology (ICT) and related products.
As of July 1, 2016, Canada permanently eliminated customs tariffs on many of the 201 technology and information-related products. Other customs tariffs will be eliminated over three years. The products include audio-visual products and parts, flight simulators, telecommunication products, software, media-storage devices, medical devices, touch-screen devices and medical equipment.
What this means is that Canadian businesses that import the 201 ITA and related products will no longer pay duties. More importantly, exports of these ICT products manufactured in Canada will not be subject to duties when imported into ITA signatory countries that have implemented the agreement. Canada has a strong ICT industry, which will benefit from opportunities in the global market.