The Retail Council of Canada (RCC) and four border-community chambers of commerce have asked the federal government to eliminate import tariffs on finished goods, to enable Canadian retailers to offer more competitive prices and reduce cross-border shopping.
“Start with what can be changed immediately and eliminate import tariffs,” is the message to federal finance minister Jim Flaherty from the RCC and the chambers of commerce of Surrey; Winnipeg and Altona, Manitoba; Niagara Falls, Ontario; and Fredericton, New Brunswick.
Diane Brisebois, RCC’s president and CEO, said, “The government’s decision to increase duty exemptions on goods bought in the U.S. is salt in the wounds of retailers in border communities.
“They already face too many obstacles to competition, such as import duties, as high as 18% on sports equipment. Now Canadians are being offered yet another incentive to cross-border shop.”
“Many retailers in border communities are struggling just to stay in business,” said Carolyn Bones, president of the Niagara Falls Chamber of Commerce.
“The federal government needs to act immediately to remove barriers to competition, so that Canadians want to shop and keep their tax dollars here in Canada.”
Tariffs on many finished goods – including clothing, sporting equipment and footwear and linens – are paid by the retailer to the Canadian government. Historically, these tariffs were put in place to protect Canadian manufacturers. However, very few of these products are manufactured in Canada any more.
Brisebois urged the committee to compel multinational manufacturers and their Canadian subsidiaries to appear before the senators to explain why retailers in Canada still pay more than their American counterparts for the same goods.
RCC and the chambers of commerce stated: “What retailers in Canada want is a level playing field to compete with their U.S. counterparts so that they can bring the best products at the best value to Canadian consumers.”
