The Sarnia Lambton Chamber of Commerce is collaborating with other Chambers near the U.S. border in delivering a message to the Canadian Federal Government—keep the limit on the minimum level at which taxation would kick in for goods being shipped to Canada from the U.S.
The Chamber is part of a coalition including Windsor-Essex, Greater Niagara, Sault Ste. Marie, and Thunder Bay, all of which want to ensure a level playing field.
A study by PricewaterhouseCoopers LLP forecasts a loss of up to 300,000 jobs should a $20 limit on what is known as the “de minimus threshold” (or DMT) be raised to $800 (as the U.S. has proposed).
This would allow big American online vendors to unfairly compete on Canadian soil, with up to $9.2 billion being lost in labour income, according to the PwC study.
In May 2017, the Ontario Chamber of Commerce at its Annual General Meeting (held in Sarnia) passed a resolution supporting maintaining of the DMT.
Now the Chambers are urging the Federal Government to stay firm on the $20 limit, thus preventing the granting of an unfair advantage to foreign retail sellers operating in the Canadian marketplace.
“This issue is important, not only to our local retailers, but in the ripple effects that will threaten businesses for years to come,” said Shirley de Silva. “As negotiations on NAFTA take place, it’s vital that the interests of our business community are upheld.”