Inside Logistics

US government rejects border crossing fees

US Senate dismisses USDA's desire to charge for cargo and agricultural inspections


May 13, 2013
by The Canadian Press

OTTAWA, Ontario—The Harper government breathed a sigh of relief Friday after a US Senate committee rejected a proposal to collect fees at land border crossings.

Saying the government was pleased the idea had been quashed, Government House Leader Peter Van Loan warned such fees would have a detrimental effect on both sides of the border.

“A border fee like this would have been very damaging to both the American and Canadian economy,” said Van Loan.

International Trade Minister Ed Fast was equally elated, applauding the decision as a recognition that “free and open trade, rather than protectionism, is the way forward to create jobs and prosperity for workers in both our countries.”

The US Department of Homeland Security had wanted Congress to authorize the study of a fee that could be collected from everyone entering the US from Canada and Mexico.

But the Senate judiciary committee voted Thursday to amend an Immigration Reform Bill designed to implement stricter border security measures, and closed the door on considering charging land border crossing fees.

The fight over potential hikes in the cost of moving across the border isn’t quite over, however, as the Obama administration continues to examine ways of paring down its massive budget deficit.

The US Department of Agriculture last week also recommended imposing fees for an array of border services, including inspections of agricultural products, commercial aircraft, rail cars, ships and even passenger baggage.

Van Loan said the prospect of new charges at the Canada-US border is always looming, and that’s why the federal government has to keep sending a message they are not a good idea.

“Obviously this is an idea that pops up from time to time, but we have to remain always in Washington active in advancing our interests,” he said.

The agriculture department last week suggested new border fees should be imposed to help offset the costs borne by US Customs and Border Protection to provide free services at America’s borders.

Fast also jumped on that proposal, saying he would press upon his US counterpart the harm that USDA fees could cause to businesses and the economies in Canada and the United States.