New fee would stifle trade

“That will be $22” spoke the Homeland Security Border Guard at the US customs to the family of four headed to the movie theatre in International Falls.
It has not happened yet, but the United States is exploring the option of collecting a user fee to enter the country by land. Already the United States collects a $5.50 fee for a passenger inspection fee from Canadians flying into the United States. Like all agencies throughout North America, this US agency is looking at ways to offset costs in protecting the United States.
The Department of Homeland Security revealed the possibility of the crossing fee in a budget request. The US department is looking for funds to study the cost of collecting new tolls for people walking or driving into the States from either Canada or Mexico.
For border communities like Fort Frances and International Falls and Rainy River and Baudette, the fees would have dramatic costs on families visiting one another. The quick crossing to catch a flight out of the Falls or Duluth would be discouraged. The skipping across the border for cheap gas would be discouraged. Canadians would likely rethink the family getaway in Duluth or Minneapolis.
Patients travelling to Winnipeg for appointments would be less likely to take the faster route through Baudette and Warroad.
This potential added cost for tourists returning home after vacationing in Canada would create as much havoc as the requirement by both governments that travelers moving across the border required a passport.
It is interesting that both the Canadian and US federal governments are looking to remove barriers to cross border trade. Both recognize that the movement of goods and services across the border is important to the economies of both countries. This proposal flies in the face of removing barriers.
A study by the Bank of Montreal indicated that Canadian retailers believe they lose $20 billion in sales to Canadians shoppers buying in the United States. This proposed crossing tax could be a boon for Canadian retailers.
Any fee added to travelers or truck drivers will be bad for both countries.
It becomes a barrier to trade. The movement of goods across the border becomes more difficult.
Over 350 million people cross into the United States at land borders annually. A small fee would put a significant dent in the Homeland Security budget. At the Fort Frances crossing, with over 300,000 people crossing each way every year, it would be a significant windfall for Homeland Security. In the month of February Canadians made 1.2 million same day trips to the US.
It will be interesting to see how northern US members of congress react to this proposal. Already the Canadian Chamber of Commerce is lobbying to stop the proposal.

–Jim Cumming,
Publisher