An association that advocates for duty-free shops in is calling political attention to a crisis facing what they call vital Canadian businesses.
According to a release from the Frontier Duty Free Association, duty-free businesses are “vital to rural border communities.” and is calling on political leaders to “adopt urgent measures to support Canada’s land border duty-free sector and the communities that depend on it.”
“[The Frontier Duty Free Association] is urging action on three straightforward, actionable recommendations that will help protect small, Canadian-owned, export-driven businesses that are vital to rural border communities across the country,” reads the release. “Canada’s land border duty-free stores are 100 per cent export businesses. They promote Canadian products, keep dollars in the country, and serve as critical economic anchors in small border towns.”
Barbara Barrett, Executive Director of the Frontier Duty Free Association, suggested that duty-free businesses are in crisis because of a sharp decline in cross-border travel and tariffs on numerous exports.
“They are 100 percent reliant on cross-border traffic, and with rising tariff threats and declining travel, they are the first and hardest hit,” said Barrett.
“Without support, we will lose long-standing, family-owned businesses that help sustain border economies.”
Not only are the stores in crisis, but some would be at risk of closure within months if their struggles remain unaddressed, according to the association.
“They are facing compounding pressures — including outdated excise tax rules, inconsistent recognition of their export status across departments, and increased vulnerability to U.S. trade action,” reads the release.
“As tariff threats escalate, these businesses and the communities around them are being hit hard and fast by reduced cross-border traffic. A recent industry survey found that one-third of Canada’s land border duty-free stores are at risk of closure within months if no action is taken.”
The Frontier Duty Free Association is calling on all parties to adopt the following actions:
- Targeted Financial Support: Introduce a relief package for businesses facing immediate harm due to cross-border trade volatility.
- Ministerial Directive: Ensure all federal departments apply the export status of duty-free shops consistently.
- Excise Tax Alignment: Modernize tax policy to level the playing field with the U.S.
“This is not a big ask,” said Barrett.
“These small, achievable steps will keep people employed, dollars in Canada, and communities stable.”
