Blue Water Bridge Duty Free. Photo courtesy of sarniadutyfree.comBlue Water Bridge Duty Free. Photo courtesy of sarniadutyfree.com
Sarnia

Chamber Coalition Opposes Duty-Free Hike

Chambers of commerce from five border cities are presenting a united front against an American push to drastically change the duty-free threshold.

The Trump administration is demanding the de minimis threshold (DMT) be increased from $20 to $800 as part of the ongoing NAFTA negotiations.

Sarnia-Lambton Chamber of Commerce President Shirley de Silva says that could be devastating for the Canadian economy.

"Raising the de minimis threshold to $800 U.S. would result in the loss of up to 300,000 jobs by 2020 and a loss of labour income by up to $9.2-billion," says de Silva.

She says the threat is especially dangerous for border communities.

"Americans can order $800 U.S. from Canadian e-commerce sites without paying any duties or taxes and the limit for Canadians is $20. We feel that's really important because Americans actually have a built in advantage. They have no national sales tax, so there's a 12% advantage."

The Sarnia-Lambton chamber has joined counterparts in Windsor-Essex, Greater Niagara, Sault Ste. Marie and Thunder Bay to form a coalition in opposition to any change in the duty-free threshold.

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