Three U.S. senators are calling on the Canadian prime minister to allow more duty-free U.S. goods in advance of a meeting with President Obama this Thursday.
Connecticut Sens. Chris Murphy and Richard Blumenthal, along with Oregon’s Ron Wyden, are seeking to ensure Canada provides a level playing field for U.S. exporters. Canada is the United States’ largest trade partner.
The senators said in a letter to U.S. Trade Representative Michael Froman that the price level at which Canada imposes duties on goods is lower than that of the United States. As a result, American small businesses are at a disadvantage when seeking to export their products to Canada.
Under Canadian law, Canadian citizens can only bring back goods from other countries worth $20 or less in Canadian dollars after short visits. Above that threshold, Canada imposes a duty. In the United States, this threshold has been $200.
The three said in their letter this is a distinct disadvantage to American companies trying to export to Canada, particularly relatively low-value items where the either the duty or costs associated with formal entry can effectively kill the sale.
