Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Is There An Opportunity for Canada to Help Canadian Manufacturers?

On December 30, 2008, the Associated Press ran an article http://www.forbes.com/feeds/ap/2008/12/30/ap5868609.html

about three furniture manufacturers in Mississippi setting up in a Foreign Trade Zone to save domestic manufacturing jobs in Mississippi.  According to the brief article, companies in the Foreign Trade Zone do not pay import duties on inputs used in the manufacture of furniture so long as the goods are exported.

Canada should consider setting up Foreign Trade Zones in British Columbia, Ontario and Quebec in order to save Canadian jobs.  I have a number of manufacturing clients who are facing tought choices of moving their manufacturing operations to the United States (because the majority of their sales are to the U.S) or overseas locations.  If Canada were to establish Foreign Trade Zones so that Canadian manufacturers can save on customs duties and goods and services tax (and provincial sales taxes if the provinces agree), it would be a needed encouragement to keep manufacturing jobs in Canada.  If Canada waits, U.S. States, such as Mississippi, will come out with such incentives and take Canadian jobs South.

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