18 September 2009

Feds to end machinery import tariff

The following appeared in today's edition of "The Star".

Finance Minister Jim Flaherty is expected to announce this morning that the federal government is ready to phase out all remaining tariffs on imported machinery and equipment.

Flaherty eliminated tariffs on some imported machinery in last January's budget.

At the time, the government estimated the move would reduce business costs by about $440 million over five years.

Now, the government is prepared to phase out tariffs on all imported manufacturing inputs.

Ottawa estimates that will eventually save businesses another $250 million or more.

Flaherty will likely argue that the move provides not only long-term benefits, but also a short-term shot in the arm to the economy.

The move would dovetail with Prime Minister Stephen Harper's message this week in Washington about reducing trade barriers and opening borders to commerce.