U.S. Eyes Surcharge For Inbound Canada, Mexico Travelers

The Wall Street Journal, 7/8/11

Canadian exporters warned Friday of a possible deterioration in North American trade relations due to a push in Congress to slap U.S.-bound Canadian and Mexican travelers with a surcharge.

The surcharge, estimated at $5.50 per passenger and proposed by the House Ways and Means Committee, is designed to offset lost revenue resulting from a free-trade pact with Colombia.

Canadian Manufacturers and Exporters said the surcharge would be levied starting next year against Canadians and Mexicans who arrive at a U.S. airport or port.

The travel surcharge was included as part of the U.S.-Colombia free-trade legislation to make up for anticipated lost revenue once duties on Colombian-made imports are removed. The fee would raise about $553 million by 2016, as estimated by the Congressional Budget Office in its review of the deal.

Canada and Mexico are trading partners with the U.S. as part of the North American Free Trade Agreement, while the U.S. and Canada are each other’s largest trading partner with about $500 billion in goods crossing the borders each year.

Read more…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s