HS Code:
The 'Produced in Canada and not subject to licensing requirements' category under the Harmonized System (HS) Code framework typically includes a wide range of goods manufactured or produced in Canada that do not require specific import or export licenses. This category often encompasses products such as certain agricultural goods, manufactured items, and raw materials that meet specific regulatory criteria for free trade under agreements like the USMCA (United States-Mexico-Canada Agreement). These products benefit from streamlined customs processes and reduced barriers, facilitating smoother international trade. The classification ensures compliance with Canadian export regulations and international trade agreements, promoting economic cooperation and market access for Canadian producers.
Total Trade Volume
CAD 120 billion
Data from 2022
Source
Statistics Canada & Global Trade Atlas
CAD 90 billion
75% of total trade of total trade
Increasing
CAD 10 billion
8.3% of total trade of total trade
Increasing
CAD 8 billion
6.7% of total trade of total trade
Stable
CAD 5 billion
4.2% of total trade of total trade
Decreasing
CAD 3 billion
2.5% of total trade of total trade
Stable
Average Rate
2.5% ad valorem
Highest Rate
5% (applied by certain non-FTA countries)
Lowest Rate
0% (under USMCA and CETA agreements)
Increased demand for Canadian agricultural products
Boost in exports of grains and dairy products to the US and Mexico due to favorable trade agreements like USMCA
2022
Shift towards sustainable production
Growing preference for eco-friendly and sustainably produced goods in the EU market, influencing Canadian export strategies
2021
Digital trade facilitation
Adoption of digital customs processes has reduced trade barriers and expedited shipments, particularly with Asian markets
2020
Adjustments to rules of origin under the USMCA have simplified export processes for Canadian goods not subject to licensing, particularly benefiting small and medium-sized enterprises.
July 2023
Increased trade volume with the US and Mexico by approximately 5% in targeted sectors.
Further tariff reductions under the Canada-EU Comprehensive Economic and Trade Agreement (CETA) have enhanced market access for Canadian products in this category.
March 2023
Strengthened trade ties with the EU, with a projected 3% growth in exports for 2024.
Canada introduced new trade facilitation measures to address global supply chain disruptions, prioritizing goods not subject to licensing for faster clearance.
November 2022
Reduced delays at borders, maintaining steady trade flows with key partners like the US.