Bill C-13, An Act to implement the Protocol on the Accession of the United Kingdom of Great Britain and Northern Ireland to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, would amend several federal Acts. Its stated goal is to put the UK’s accession to the trade agreement into effect in Canadian law. It is a proposal, not a law in force; if passed, it would start on a day set by the Governor in Council.
The Customs Tariff would gain a new Comprehensive and Progressive United Kingdom Tariff (CPUKT) for eligible goods. Many listed goods would have a final customs duty rate of “Free,” while other goods would have exceptions or phased reductions.
The bill would add the UK, the Channel Islands and the Isle of Man to the tariff-treatment list for CPUKT. The tariff applies only to goods entitled to it; the bill does not make every good from those places duty-free.
The Governor in Council could extend CPUKT entitlement to goods originating in any CPTPP country, set an effective date, and set or exempt conditions.
The Bank Act would let the Governor in Council change Schedule IV by order to meet Canada’s international trade obligations. Changes to banking rules would also refer to certain foreign-bank subsidiaries connected to countries listed in that Schedule or to a “regulated foreign entity.”
The CPTPP Implementation Act would include listed accession protocols in the definition and approval of the Agreement. A House of Commons committee would have to review the UK’s accession and the Act’s operation every three years, starting three years after the Act comes into force.
Importers and businesses: If goods qualify for CPUKT, their customs duty could be reduced or eliminated according to the tariff schedule. The bill does not itself guarantee lower prices for buyers.
Canadian producers: Some goods they compete with could face lower customs duties when imported from the UK. The bill does not say what effect that would have on particular businesses.
Banks and related financial institutions: The bill changes which foreign-bank connections are named in certain exceptions under the Bank Act. The exact practical effect is hard to verify without the full current Act.
Taxpayers and the public: A House of Commons committee would have to review the accession and the Act’s effects and report its findings and recommended changes. The bill does not set up an application or appeal process for individuals.
The tariff schedules referred to in the bill are not included in the supplied material. The exact goods covered, exceptions and product-by-product rates therefore cannot be checked.
The bill’s tariff entitlement depends on conditions in the Customs Tariff, including section 24, which was not supplied. The full rules for qualifying goods could not be verified.
The bill does not explain how changes to Schedule IV would affect particular financial institutions. The full Bank Act and related Acts were not supplied, so the current rules and the full effect of the amendments could not be verified.
The bill’s new tariff rates depend in part on the date the Agreement takes effect between Canada and the UK. The bill itself would start on a separate day set by the Governor in Council.
The bill repeals a section of the CPTPP Implementation Act, but the text of that section was not supplied.
Lower customs duties could reduce government revenue and increase competition for Canadian producers. The bill provides no estimate of either effect.
The missing tariff schedules make it difficult to identify which goods would benefit, which would be excluded, and when rates would change.
The Governor in Council would have power to change Schedule IV and extend CPUKT entitlement to some goods originating in CPTPP countries. The bill text supplied does not set out how those powers would be used in individual cases.