OTTAWA — Canada is making it even harder to import goods to Canada from Russia and Belarus, and easier for Ukrainians fleeing the invasion to come here, Deputy Prime Minister Chrystia Freeland announced Thursday.
OTTAWA — Canada is making it even harder to import goods to Canada from Russia and Belarus, and easier for Ukrainians fleeing the invasion to come here, Deputy Prime Minister Chrystia Freeland announced Thursday.
OTTAWA — Canada is making it even harder to import goods to Canada from Russia and Belarus, and easier for Ukrainians fleeing the invasion to come here, Deputy Prime Minister Chrystia Freeland announced Thursday.
Here’s what you need to know about Canada’s revocation of Russia and Belarus’s “most favoured nation” trading status and the two new immigration programs:
A huge tariff hike: In spite of the fond language, “most favoured nation” status is the default for members of the World Trade Organization, which requires equal basic treatment among its participants; Canada lists 243 trading partners for customs purposes and every one of them has been a most favoured nation. Now, Canada can put up any barriers against Russia and Belarus it likes, and is starting with a 35-per-cent tariff on goods not already subject to higher levies.
They can complain to the WTO. Disputes there last years.
What difference this will make: Across the whole economy, not very much. In 2021, Canada imported about $2.1 billion worth of goods from Russia, 0.3 per cent of all our imports—and of that, about $613 million was physical merchandise. The many moves Canada and other countries have made to cut off Russia’s financial system have already made paying Russian vendors for anything very difficult.
Whom it does affect: Canada’s imports from Russia are heavy on raw materials like metals and chemicals, and equipment parts.
A federal list of major importers, based on 2020 data, shows several tire companies; one of them, Continental, told The Logic in an email that it has a factory in Kaluga, southwest of Moscow, that can make three million tires a year, but it was already being severed from the international supply chain: “Due to the war in Ukraine, we will suspend tire production intended for export at our plant in Kaluga until further notice,” Canadian marketing manager Okan Sen wrote in an email.
Other major importers include medical-isotope company Nordion (it didn’t respond to an inquiry but it’s previously bought Russian uranium and reported a deal for Russian cobalt to last until 2024) and Magellan Aerospace.
Ikea, an importer of finished consumer goods from Russia, had already announced it was suspending operations there.
Welcoming Ukrainian talent: Immigration Minister Sean Fraser announced two programs, including expanded family sponsorships and a rapid stream for Ukrainians seeking safe haven for up to two years. Fraser promised swift processing in any of 33 European centres, followed by open permits to work or study.
“Any Canadian employer willing to hire Ukrainians may do so, and I encourage the Canadian business community to step up and do their part to help support those coming into Canada in their time of need,” Fraser said in a news conference.
Tech recruiting company VanHack opened a job board for Ukrainians seeking to migrate, promising to waive fees and help with relocations.
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