What does that mean? This will allow Canadians to buy more goods from the U.S. online, including electronics and smartphone accessories, without fear of feared tariffs being imposed on their package. We`ve all seen that the duty to order online from the U.S. has been broken, and when that happens, it kills any market and eliminates economies. In 1994, the United States, Mexico and Canada created the world`s largest free trade region with NAFTA, generating economic growth and helping to improve the standard of living of people in all three member countries. By strengthening trade and investment rules and procedures, this agreement has proven to be a solid foundation for building Canada`s prosperity and has set a valuable example of the benefits of trade liberalization for the rest of the world. The new agreement between Canada, the United States and Mexico will serve to strengthen Canada`s strong economic ties with the United States and Mexico. Today, this agreement also introduces a new derogation for goods to or below 150 CAO. However, this exemption exists only for customs duties.
Taxes are 7 times higher than tariffs alone, so duty relief has a much smaller impact on retail prices. In the agreement, the three countries agreed on this and committed to adopting fewer customs formalities. This benefits even more the entire e-commerce sector, e-commerce SMEs. What for? E-commerce retailers that have shipments worth $2500 and below are usually subject to stricter customs formalities. For example, they often need to have an employer identification number for their shipments. In this agreement, tax and customs exemptions have been increased from 20 CAD to 40 CAD. Mexican consumers also get duty-free products if their orders are 117 $US or less….