While many cross-border shoppers may cheer the increases in merchandise allowance that Canadians will be allowed to return with from the U.S., many towns and cities along the border are petitioning the Ministry of Finance to rescind his June 1 changes.
Currently, Canadian residents returning to Canada after 24 hours only are permitted $50 in merchandise. That will rise to $200 on June 1.
And residents who are away for 48 hours or more now will be permitted to return with $800, up from $400.
Retail businesses along the border are expected to take the biggest hit.
When I was in Toronto almost two weeks ago, my publisher friends in Cornwall, Welland, and Sarnia all were concerned about the impact those changes would have on the economy of their communities.
From Moncton, N.B. to White Rock, B.C., Chambers of Commerce and towns are anxious about the economic impact the federal changes will have on their communities.
It has left some business people steaming here in Rainy River District, although the Fort Frances Chamber of Commerce has not taken a position on the changes in the federal budget.
In Niagara Falls, for instance, the Chamber organized a town hall meeting with retailers to discuss the impact on the potential surge in cross-border shopping. They predicted lost jobs and bankruptcies.
In Cornwall, both the Chamber of Commerce and the city have come out in opposition to the new rules.
Many shoppers are discovering that after-market prices on trailer and RV prices are 18 percent cheaper in the U.S. That is the duty that Canadian stores have to pay to bring those parts into Canada.
Cross-border shoppers are not charged those duty fees and only have had to pay the HST in Ontario.
The Retail Council of Canada wants the federal government to eliminate the import duties on finished goods entering the country, as well as to review the supply-management system that protects certain industries within the agricultural sector.
It stated that “these duties have outlived their original purpose, which was to protect Canadian manufacturing. These useless tariffs only help to propel more people who live close to the border to drop down to the U.S.”
Across our district, most Canadian businesses try to match U.S. prices.
The retail sector of every community is a critical component to the overall economic health of the district. In Canada, the retail sector is the largest employer of Canadians.
The only answer to make consumers and business people happy is to level the playing field by not charging duties on many of the goods coming into Canada. They reach the U.S. duty-free and when individuals import these products into Canada, they are not charged a duty.
However, a business importing those products from the U.S., Europe, or the Far East is faced with those duties, which must be added to the price of the goods in their store.
In Canada, we must make it easier for businesses to be successful. And must start by making competition equal between businesses in the U.S. and Canada.
