Imported cargo ships, tankers and large ferries will no longer be subject to a 25 per cent tariff, Finance Minister Jim Flaherty announced Friday.
The measure is aimed at making it cheaper for Canadian shipowners to replace aging fleets with more modern and more efficient vessels.
Waiving the tariff will save the industry $25 million a year for the next 10 years, the government estimates.
"These were tariffs that don't serve any purpose because … the ships to which they apply are not capable of being made competitively in Canada," Flaherty told reporters in St. Catharines, Ont.
"There's a big business … in refitting ships and a lot of that happens here and that is not affected by this tariff," he said. "This is one of those tariffs that had outlived its usefulness."