A Montreal-based public policy think tank says the federal government’s decision to impose a new tariff on imported canned vegetables will increase costs for consumers at a time when food prices continue to outpace overall inflation.
The Montreal Economic Institute (MEI) made the comments after the release of Statistics Canada’s latest consumer price data, arguing that the new tariff could place additional financial pressure on households, particularly those already facing higher grocery bills.
According to Statistics Canada, the Consumer Price Index rose 3.2 per cent over the past 12 months. Over the same period, prices for food purchased from stores increased 4.3 per cent, while prices for canned vegetables and other vegetable-based products climbed 4.6 per cent.
The comments come after the federal government announced recently it would impose a 10 per cent tariff on imported canned vegetables.
“The federal government cannot on the one hand claim to want to address the high cost of living while on the other hand imposing new taxes on the food Canadians consume,” said Renaud Brossard, vice president of communications at the MEI. “It is unfortunately Canadian families, and in particular low-income families, who will pay more because of this decision out of Ottawa.”
The MEI said the latest tariff will add to concerns about food affordability as grocery prices continue to rise faster than the overall rate of inflation.
The organization also referred to its previous position on tariffs, noting it had argued last year that such measures increase costs for Canadian consumers. At the time, it called for greater trade liberalization instead of new protectionist measures.
The MEI said the federal measure applies to food products and maintained that tariffs increase costs for domestic consumers.
The MEI is an independent public policy think tank with offices in Montreal, Ottawa and Calgary. It says its work includes research, media commentary and policy advice focused on economic and public policy issues.
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We regularly shop at an Italian specialty grocery store. Will this increase the cost of canned tomatoes, olives, artichokes, Greek beans and dolma, etc etc that are imported from Europe?