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Pitch to Increase Canada’s Duty-Free Online Shopping Limit a Sticking Point in NAFTA Talks

Posted August 09, 2017

Under Economic Issues, International Trade Issues


(Reuters)

A U.S. proposal for Mexico and Canada to vastly raise the value of online purchases that can be imported duty-free from stores like Amazon.com and eBay is emerging as a flashpoint in an upcoming renegotiation of the NAFTA trade deal.

Vulnerable industries like footwear, textiles and bricks and mortar retail in Mexico and Canada are pushing back hard against the proposal by the U.S. trade representative to raise Mexican and Canadian duty-free import limits for e-commerce to the U.S. level of $800 US, from current thresholds of $50 US and $20 Canadian, respectively.

For the Mexicans, the main worry is that such a move could open a back door for cheap imports from Asia and beyond. For Canadian retailers, the fear is that e-commerce companies will undercut their prices. Click here to read more.