CANADA is prepared to challenge the passage of US legislation that would target user fees at cargo entering the United States via Canadian ports, warned Canadian Transport Minister Lisa Raitt.
Speaking before the American Association of Port Authorities spring conference in Washington, Ms Raitt said Canada "will vigorously defend our rights attained through international trade agreements.
Washington Senators Patty Murray and Maria Cantwell last September introduced the Maritime Goods Movement Act for the 21st Century as a way to protect Pacific Northwest ports from losing cargo to Vancouver and Prince Rupert.
Americans suspect Canadian ports are used to avoid US Harbour Maintenance Tax. The senators also cited a need to protect US ports from cargo diversion to Mexico, reported American Shipper.
Ms Raitt said taxing US-bound cargo through Canada is misguided because Canadian ports "compete on a fair playing field" as independent, self-governing and self-financing entities.
She also noted that the amount of Canadian cargo moving through US ports is three times higher than US cargo moving through Canadian ports and that the number of containerised US cargo imports via Canadian ports has actually declined over the past decade.
Such a law, she said, runs against the Beyond-the-Border Initiative of President Barack Obama and Prime Minister Stephen Harper, which aims to harmonise border management to help spur growth in both countries.
"The imposition of a new tax would have a negative effect on our trade, growth and jobs. And that impact would be felt on both sides of our border," Ms Raitt said.
PORTS
01 May 2014 - 22:20
Canadian transport minister prepared to fight tax on US-bound cargo
CANADA is prepared to challenge the passage of US legislation that would target user fees at cargo entering the United States via Canadian ports, warned Canadian Transport Minister Lisa Raitt.
PORTS
01 May 2014 - 22:20
Canadian transport minister prepared to fight tax on US-bound cargo
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