Canadian Banana Imports Surge During Recession
Fresh or Dried Bananas and Plantains are Customs Duty Free
Aug 28, 2009
According to the Industry Canada’s latest online trade data, Canada imported US$312.6 million worth of bananas including plantains in 2008.
That figure represents a 32.2% gain from 2007, and a 32.2% rise since 2004. Clearly, banana-food products remain in strong demand in Canada during the current worldwide recession.
Soft and sweet, bananas are often consumed as a dessert or a snack. Bananas can also be cut into pieces and dried into banana chips or ground into banana flour. Plantains are starchier, stiffer bananas that are often fried or baked in honey syrup.
Top 10 Sources for Canada’s Imported Bananas
In total, the following top 10 countries supplied Canada with 99.8% of all banana imports during 2008.
- Ecuador … US$80.5 million (25.7% of Canadian banana imports in 2008)
- Costa Rica … $75.6 million (24.2%)
- Colombia … $74.8 million (23.9%)
- Guatemala … $56.5 million (18.1%)
- Honduras … $17.6 million (5.6%)
- Mexico … $2.4 million (0.8%)
- Panama … $1.9 million (0.6%)
- Peru … $1.1 million (0.4%)
- United States … $998,690 (0.3%)
- Philippines … $458,245 (0.1%)
About 92% of Canada’s imported bananas and plantains come from Ecuador, Costa Rica, Colombia and Guatemala.
Fastest-Growing Suppliers of Canadian Bananas
Bermuda exported $311,515 worth of bananas to Canada in 2008 up from nil in 2004. Nicaragua’s banana shipments to Canada were $60,159 in 2008 compared with nil in 2008.
This list below shows other banana-supplying nations with high percentage gains in their exports to Canada for 2008.
- Mexico … US$2.4 million (up 95.7% from 2007, up 17.6% from 2004)
- Jamaica … $19,129 (up 92% from 2007, up 3,131% from 2004)
- Honduras … $17.6 million (up 62.6% from 2007, up 38.5% from 2004)
- Guatemala … $56.5 million (up 54.2% from 2007, up 74.3% from 2004)
- Ecuador … $80.5 million (up 52.1% from 2007, up 124.7% from 2004)
- Vietnam … $148,277 (up 44.8% from 2007, up 125.4% from 2004)
- Peru … $1.1 million (up 29.2% from 2007, down 30.9% from 2004)
- Costa Rica … $75.6 million (up 20.1% from 2007, up 67.2% from 2004)
- Philippines … $458,245 (up 13.3% from 2007, up 93.7% from 2004)
- Colombia … $74.8 million (up 11.9% from 2007, up 52.5% from 2004)
Duty-Free International Tariff Code for Bananas
The international six-digit tariff classification code is 0803.00 for fresh or dried bananas including plantains.
According to the latest Canada Border Services Agency customs tariff schedule, bananas imported into Canada are duty free regardless of their country of origin.
Usually, a preferential tariff like the North American Free Trade Agreement (NAFTA) signed by Canada, Mexico and the U.S. would give Mexican and American banana exporters a competitive advantage in selling banana produce to Canada.
The generic Most Favored Nation category (a strange name for low-end tariff treatment) covers countries not party to a preferential trade agreement with Canada. Most Favored Nations also qualify for duty-free status for their bananas and plantains when imported into Canada.
Canada's Low-Cost Banana Suppliers
This means that Canadian importers can focus on finding the best quality bananas a the lowest possible prices, rather than on haggling about increased tariff duty costs for countries not covered under a preferential tariff with Canada.
The fact that banana unit costs are not subject to Canadian tariff duty charges is a major reason for Canadians eating more imported bananas during the current recession.
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