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Politics : Canadian Political Free-for-All -- Ignore unavailable to you. Want to Upgrade?


To: Cogito Ergo Sum who wrote (15176)10/24/2011 4:31:19 PM
From: average joe  Read Replies (3) | Respond to of 37182
 
Canadian travellers slapped with border-crossing surcharge

BY JASON FEKETE, POSTMEDIA NEWS OCTOBER 24, 2011 3:06 PM

STORYPHOTOS ( 1 )

OTTAWA — In a move that's straining already threadbare Canada-U.S. relations, Canadians travelling by air or boat to the United States face a new $5.50 surcharge being implemented by the Obama administration.
Photograph by: Tim Boyle, Getty Images
OTTAWA — In a move that's straining already threadbare Canada-U.S. relations, Canadians travelling by air or boat to the United States face a new $5.50 surcharge being implemented by the Obama administration.

As the Harper and Obama governments battle over Buy American rules in the U.S. jobs bill and other irritants, the two trading partners are now at odds over the surcharge on Canadians, Mexicans and others travelling stateside.

A bizarre provision in the U.S.-Colombia free-trade deal officially signed into law Friday by President Barack Obama will see the Americans repeal an exemption that has excluded travellers from Canada, Mexico and the Caribbean from paying the customs user fee to enter the United States by air or sea.

The "passenger inspection" levy — which first surfaced early this year — would apply to all commercial air and marine travellers from Canada, Mexico and Caribbean nations, and would be added to the cost of an airplane or boat ticket.

The countries have long been exempt from the fee, but the cash-strapped U.S. government — which is facing a $1 trillion deficit — expects to collect about $110 million annually from the tax.

The new levy will not apply to Canadians crossing the border into the U.S. in their vehicles. Nevertheless, the Harper government is not impressed with the fee and is vowing to fight it.

"Raising taxes at the border just raises costs on consumers," International Trade Minister Ed Fast said in a statement. "Canadian officials have raised concerns about the removal of this exemption at the highest level. We will continue to raise Canada's concerns with U.S. lawmakers."

Approximately 7 million Canadians flew to the United States in 2010, according to Statistics Canada, while more than 150,000 travelled by boat.

NDP international trade critic Robert Chisholm attacked the government Monday in question period for failing to stand up for Canadians in cross-border relations, and said the $5.50 levy is just the latest example.

"When it comes to defending the interests of Canadians, Conservatives have shown they cannot be trusted," Chisholm said.

Gerald Keddy, parliamentary secretary to Fast, said in the House of Commons the government is "disappointed" the exemption is being removed.

"We would hope that they will recognize the error of their ways, and free and open trade is the way out of this economic depression, not into it," Keddy said.

In February, after the fee came to light in a draft copy of the 2012 U.S. budget, Prime Minister Stephen Harper attacked the policy as a bad proposal designed to bail the U.S. out of a huge debt on the backs of Canadians and other visitors.

"It's clear that the U.S. government is casting around for ways to raise revenue," Harper said of the $5.50 tax. "This is not a useful way to do that."

Harper noted at the time that travel levies run counter to economic recovery efforts in both countries.

"We want to ensure trade and travel between our two countries is easier, not more difficult, and we don't need additional taxes on that kind of economic activity," the prime minister said.

jfekete(at)postmedia.com

twitter.com/jasonfekete

© Copyright (c) Postmedia News



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