Proposed U.S. Border Inspection Fee Increases

The Honourable Ed Fast, Minister of International Trade, issued the following statement [on June 30, 2014]:

“I am concerned that proposed increases to fees by the United States Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) would impose disproportionate costs on Canadian exporters and commercial transporters, with detrimental effects on our cross-border trade and ultimately on the prosperity of both countries. My concerns have been formally submitted to the U.S. government.

“Canada and the United States have the world’s largest trading relationship, and Canada is by far the largest customer for U.S. goods and services. Bilateral trade in goods and services for 2013 was valued at $782 billion—that’s $2.1 billion a day or $1.5 million every minute. We want to grow this relationship, not stifle it.

“To ensure our mutual prosperity and growth, Canada and the United States must continue to work together to facilitate border trade and strengthen our North American competitiveness. While we believe that government inspection fees should cover the costs of doing business, the proposed APHIS fees unduly affect goods that travel across the border by truck, which represent the majority of Canada-U.S. trade. In fact, the new APHIS fees are expected to cost the Canadian trucking industry an additional $15.5 million. As well, according to the Chamber of Marine Commerce’s estimates, increased inspection costs for Canadian ships could more than double under the new rules.

“Given the unique nature of our trading relationship, Canada-U.S. trade is expected to suffer disproportionately when compared to other country trading relationships with the United States. The market distortion that is being created may not be consistent with U.S. international trade obligations...

This has been excerpted from 30 June 2014 news release by FATDC, and is available in its entirety at http://www.international.gc.ca/media/comm/news-communiques/2014/06/30a.aspx?lang=eng.