Canada is being pressed for freer trade in online goods by a number of American states, with eight state governors writing a letter seeking an expansion of Canada's low limits for online, duty-free purchases.
Their letter to Foreign Affairs Minister Chrystia Freeland and U.S. trade czar Robert Lighthizer says the NAFTA talks are an opportunity to review the $20 limit for what Canadians can buy online without paying duties on foreign goods.
The Retail Council of Canada says a higher limit could create an uneven playing field to the detriment of domestic vendors — who are stuck charging federal and provincial sales taxes which average 12.3 per cent across the country.
They say the U.S. doesn't have similar concerns — the U.S. has no federal sales tax.
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