Will e-commerce become more competitive in Canada?

As Canadians we are used to paying premium prices for products on-line. But are changes in the pipe-line that could make on-line shopping less painful on our wallets?

An interesting article appeared on the CBC website on July 29th regarding the renegotiation of the North American Free Trade Agreement (NAFTA). Trump’s trade officials are now seeking to even the playing field for Canadian shoppers being penalized when purchasing from US e-commerce websites. Currently anything bought by us in Canada over $20 in value from a US e-commerce website is subject to duty charges on top of the delivery charges. It’s pretty off-putting and drives most of us to shop on Canadian e-commerce websites, where the prices are much higher. Meanwhile, in the good old USA, shoppers buying from Canadian e-commerce websites can enjoy buying items up to $800 before any duty charges are applied by their homeland!

Changing this de minimis shipment value ($20 verses $800) is part of the NAFTA renegotiation, and if successful could greatly improve our cross border on-line shopping AND make the markets more competitive here. Somehow I can’t see this happening soon!

Interested? Read more about this at the CBC website here

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