14°c A few clouds
Winnipeg Free Press - PRINT EDITION
Cross-border shopping spree?
Survey suggests new rules a lure
OTTAWA -- Canadians are in a U.S. shopping state of mind this summer thanks to changes in regulations that allow them to buy more without paying duty, a new survey suggests.
The Canadian Press-Harris Decima poll on relaxed cross-border shopping limits that went into effect June 1 found a large majority in favour of the changes -- and 54 per cent of those planning a trip stateside said they intended to spend more.
Additionally, four in 10 said they were likely to purchase more duty-free goods.
The telephone survey of 1,000 was conducted between June 14 and 18 and is considered accurate plus or minus 3.2 percentage points, 19 times out of 20.
As outlined in the March budget, the duty-free threshold on stays longer than 24 hours rose to $200 from $50 beginning this month. The limit on stays longer than 48 hours increased to $800 from the current two-tiered levels of $400 and $750, depending on the length of stay.
In the poll, seven in 10 Canadians said they supported the higher duty-free limits, and eight of 10 of vacationers to the U.S. backed the changes.
"The potential number of Canadians travelling to the U.S. this summer is over four million," said Patricia Thacker, Harris Decima's vice-president of travel and leisure. "With 54 per cent likely to purchase more under the new duty-free limits, that's over two million Canadians spending more in the U.S. this summer alone."
The Retail Council of Canada has criticized the changes as just one more blow to merchants who cope with higher costs and must compete with U.S. competitors that often get a better deal from suppliers.
With the new rules in place for a little more than three weeks, it is still too early to determine if Canadians have stepped up their shopping habits, said Karen Proud of the Retail Council. But she believes there will be an impact on retailers.
"We've seen increases in cross-border shopping ever since the loonie gained parity," she said. "There's been an increase of Canadians shopping in the U.S. and a decrease in Americans coming across the border to shop here.
"The (higher limits are) just added incentive."
Proud said Ottawa erred in enacting the duty-free changes, which now match those in the U.S., in isolation of other measures to help Canadian retailers compete, including reducing tariffs and tackling the supply-management system that protects dairy and poultry farmers in Canada.
"Those products are some of the most cross-border-shopped. Dairy, eggs, milk, we know people are filling up their trunks with groceries and then shopping for everything else they can pick up and basically being waved through the border," she said.
A comparison study published by the Bank of Montreal in April found despite the near-parity of the Canadian and U.S. dollars in most months since 2007, consumer items are still on average 14 per cent more expensive in Canada, and that is before the HST tax is added. Some surveys have found a bigger gap.
The report estimated Canadian store owners lose about $20 billion a year to cross-border shopping, although with many shoppers not reporting purchases, the exact worth of cross-border shopping is difficult to calculate.
-- The Canadian Press
Republished from the Winnipeg Free Press print edition June 25, 2012 B7
More Canada
- Back to Top
- Return to Canada
More Canada
(1 of 10 articles for today)
Border agency warns of telephone scam, says it doesn't make calls
7:30 AM 0OTTAWA - The Canada Border Services Agency is warning of a possible telephone scam.
The CBSA says it has recently learned ...
Poll
Most Popular Canada
- Fast and curious driver caught going 221 km/h loses car, nets double the fine
- Senate's hired motivational speakers scrubbed after planned pep talk goes public
- Next! Montreal seeks yet another mayor after second one quits in scandal
- Corruption in Quebec: A blow-by-blow account
- 'Shocking' half of First Nations kids living in poverty, new study finds
- Harper lauds G8 declaration on Syrian conflict despite lack of consensus
- Hike in disclosure for public servants should apply to unions too: Liberals
- Ottawa says man was Asian crime gang member and should be kicked out of Canada
- Edmonton police withdraw Amber Alert for nine-month-old; baby found safe
- More controversy in Montreal: three police officers suspended amid RCMP probe
- Sobeys gobbles up Safeway
- Manitoba restaurant stops selling giant hamburger "for obvious reasons"
- Montreal's interim mayor, a self-styled corruption fighter, faces fraud charges
- Marois defends turban ban
- Woman charged after drink tossed at embattled Toronto Mayor Rob Ford
- Canadian woman, daughter caught smuggling $59,000 in bras, border agents say
- Questions about Mayor Rob Ford overshadow news of huge police raids
- Trudeau to compensate charities that paid him to help raise money
- Fast and curious driver caught going 221 km/h loses car, nets double the fine
- Training manuals for Parliament guides boost Senate, praise two-party system
- Woman run over three times by her own car
- Sobeys gobbles up Safeway
- Controversy around Toronto mayor Rob Ford continues to grow
- Glover, Bezan fight suspension from Parliament
- Alleged Rob Ford drug video 'gone,' source tells Gawker
- Gawker hits $200K for 'crack cocaine' video as mayor's senior aides resign
- Prominent Canadians back petition to rename Victoria Day to honour aboriginals
- Two men now facing first-degree murder charges in Tim Bosma test drive death
- 'I am not stepping aside,' Mayor Rob Ford says, as 'crack video' scandal rages
- Mother cries, yells as driver appears in court charged with killing boy on patio
- Senate's hired motivational speakers scrubbed after planned pep talk goes public
- 'Shocking' half of First Nations kids living in poverty, new study finds
- Fast and curious driver caught going 221 km/h loses car, nets double the fine
- Alberta judge calls killing of sleeping five-year-old 'domestic terrorism'
- Force used on protester reasonable: cop's lawyer
- Harper lauds G8 declaration on Syrian conflict despite lack of consensus
- Next! Montreal seeks yet another mayor after second one quits in scandal
- Sobeys gobbles up Safeway
- Senate's hired motivational speakers scrubbed after planned pep talk goes public
- 'Shocking' half of First Nations kids living in poverty, new study finds
- Manitoba restaurant stops selling giant hamburger "for obvious reasons"
- Feds want to extend blanket of permanent secrecy over 11 new agencies
- Canadian and American missing for nearly two weeks in Mexico
- B.C. is 'in the risk zone' for mega-earthquake along the coast: study
- Squirrel takes whirl in toilet; woman rescues rodent with barbecue tongs
- Wendy's 9-patty burger extinct
- Training manuals for Parliament guides boost Senate, praise two-party system
- Sobeys gobbles up Safeway
- Prominent Canadians back petition to rename Victoria Day to honour aboriginals
- Glover, Bezan fight suspension from Parliament
- Woman run over three times by her own car
- Ottawa threatens 'retaliatory measures' over new U.S. meat labelling regulations
- Canadian and American missing for nearly two weeks in Mexico
- Banff officials hunt for cougar that man fought off with skateboard
- Harper government brings in new performance review system for public service
- Senate's hired motivational speakers scrubbed after planned pep talk goes public
- Up to one of every three members of new tribunal gave money to Conservatives
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
Have Your Say
Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?
Login SubscribeHave Your Say
Comments are open to Winnipeg Free Press Subscribers only. why?
SubscribeThe Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.