Reference No. MN-2004-002
12 January 2005
Reference No. MN-2004-002
Inquiry into the Availability of Textile Inputs produced in Canada
The following letter was sent by the Honourable Ralph Goodale, PC, MP, Minister of Finance, to the Chairman of the CITT.
I am writing, pursuant to section 19 of the Canadian International Trade Tribunal Act, to direct the Canadian International Trade Tribunal (the Tribunal) to inquire into and report on the availability of fibres and yarns produced by Canadian manufacturers, and on the availability of fabric produced by Canadian manufacturers for use in the production of apparel.
As you know, on December 14, 2004, the Government announced measures aimed at improving the global competitiveness of the textiles and apparel industries. These measures include the elimination of tariffs on imported fibres and yarns, as well as the elimination of tariffs on imported fabrics used in production of apparel. To minimize adverse effects on current domestic production, it is my intention to retain tariffs on fibres, yarns and fabrics where domestic suppliers can demonstrate production in Canada.
The Tribunal shall consult with interested parties by conducting an open and transparent inquiry, ensuring that reasonable steps are taken to advise all interested parties and that all parties indicating an intention to participate in the inquiry have the opportunity to make their views known, through their responses to questionnaires, written submissions or public hearings, as the Tribunal may determine to be appropriate or necessary. In particular, the Tribunal will consult with interested parties in the development of any questionnaire used in the inquiry. In addition, the Tribunal will assist firms, especially small and medium-sized firms, in responding to the questionnaire, for example, by providing technical advice to help firms determine the appropriate tariff classifications of their fibre, yarn and fabric production. The preliminary information-gathering and analysis phase of the inquiry must be completed by March 31, 2005. The final report on the inquiry shall be submitted by June 30, 2005.
In this respect,
1. The Tribunal is directed to inquire into and report on the extent to which domestically produced fibres and yarns of Chapters 39, 40, 51, 52, 53, 54, 55, 56, 58, 59, 60 or 70 of the Customs Tariff were sold in the domestic market or used by textile producers for internal processing since January 1, 20031, including:
a) a detailed product description of these fibres and yarns, and their classification in the List of Provisions set out in the Schedule to the Customs Tariff, identified as new eight-digit tariff item numbers, where required, to distinguish these products from fibres and yarns not found to be produced in Canada; and,
b) the total value of sales or, where applicable, the total value of production for internal processing, of the fibres and yarns identified in a) above, for each of the eight-digit tariff items, and the significance of those sales to domestic textile manufacturers.
2. The Tribunal is also directed to inquire into and report on the extent to which domestically produced fabrics of Chapters 39, 40, 51, 52, 53, 54, 55, 56, 58, 59, 60 or 70 of the Customs Tariff were sold to domestic apparel producers or used in the internal production of apparel since January 1, 20032, including:
a) a detailed product description of these fabrics, and their classification in the List of Provisions set out in the Schedule to the Customs Tariff, identified as new eight-digit tariff item numbers, where required, to distinguish these products from fabrics found not to be produced in Canada; and,
b) the total value of the fabrics or, where applicable, the total value of fabrics produced for the internal production of apparel, identified in a) above, for each of the eight-digit tariff items, and the significance of those sales to domestic textile manufacturers.
Where appropriate, in identifying new eight-digit tariff item numbers, the Tribunal shall ensure that the scope of t