Inside Track: Understanding Quotas in the context of Canada’s New Trade Reality

In a speech “heard around the world,” at the recent World Economic Forum in Davos, Canadian Prime Minister Mark Carney underscored the importance of “middle powers” like Canada building strategic autonomy in the face of a drastic shift in the world order. As global trade becomes increasingly unpredictable—shaped by geopolitical tensions, shifting alliances, and the United States’ ongoing use of tariffs and trade disputes as leverage—it is clear that diversification is no longer optional. For importers and exporters, this means understanding how regulatory frameworks are evolving and prioritizing resilience in the supply chain. 

One of the most significant recent changes affecting Canadian importers is the expansion of steel import quotas. Historically, quotas applied primarily to steel originating from China. However, since July/August of last year, Canada broadened these restrictions to include steel imports from all global sources. This shift reflects a broader national effort to stabilize domestic markets while diversifying trade relationships—an effort that aligns with the themes highlighted in Davos.

For businesses, though, the operational impact is substantial: securing quota allocation has become increasingly competitive, and the risk of paying full duties and taxes is now a real possibility if an Import Permit is denied or withdrawn. To import controlled goods such as steel under the tariff‑rate quota system, companies must first obtain an Export Import Permits Act (EIPA) Account and a unique file number. Only after the vessel has departed can they apply for an Import Permit, and this application must be submitted through a licensed customs broker. Adding another layer of uncertainty, we have seen cases where permits have been revoked even after approval.

In this environment, having a logistics partner who understands both the regulatory landscape and the broader geopolitical context is essential. Canaan Group’s customs and freight forwarding teams work closely with clients to assess risks, prepare documentation, and develop contingency plans that account for potential quota shortages or duty exposure. Our experts ensure that importers are not only compliant but also strategically positioned to respond to sudden changes—whether that means adjusting sourcing strategies, planning for alternative routings, or preparing for the financial implications of denied permits. 

Canaan Group is committed to helping companies navigate this complexity with clarity, compliance, and confidence. Reach out today.