Canadian truckers say U.S. fee increase would harm cross-border trade

Courtesy of Toronto Sun by Jessica Hume: The U.S. wants to increase a fee on cross-border truckers — a move the Canadian trucking industry says could do serious damage to the Canada/U.S. trade relationship.

The U.S. Department of Agriculture says it wants to increase the fee Canadian truckers must pay because it has to recoup the cost of fighting pests brought into the country on Canadian trucks carrying agricultural goods.

David Bradley, president of the Canadian Trucking Alliance (CTA), said the fact the fee is being considered for all trucks — even those carrying auto parts or other non-agricultural goods — is proof it isn’t really about fighting pests.

“We are opposed to the increase, but we’re also opposed to the fee itself,” Bradley told QMI Agency.

The CTA has sought a legal opinion on whether the fee increase is a violation of the North American Free Trade Agreement and the General Agreement on Tariffs and Trade.

“This is effectively a tax on trade,” Bradley said.

The government estimates the fee could cost Canadian truckers an additional $15.5 million annually.

International Trade Minister Ed Fast said the fee creates “market distortion” that “may not be consistent with U.S. international trade obligations.”

Fast said he has formally submitted his concerns to the U.S. government.

Bilateral trade between the two countries is worth roughly $782 billion annually.

“Canada and the United States have the world’s largest trade relationship and Canada is by far the largest customer for U.S. goods and services,” Fast said in a statement. “We want to grow this relationship, not stifle it.”

Category: Featured, General Update