Canada column for Sunday, July 30/17
THE CANADIAN REPORT
(c) By Jim Fox
The U.S. government’s decision to drop a proposed border tax has been welcomed by Canada as removing the threat of a trade war.
The unilateral imposition of a revenue-generating border tax would have been a “very destructive action to take,” said Perrin Beatty, president of the Canadian Chamber of Commerce.
It could have come just as negotiations to modernize the North American Free Trade Agreement are to begin on Aug. 16.
The lack of action also reduces pressure on Prime Minister Justin Trudeau to cut Canada’s corporate tax rate to keep pace with the promised steep reduction in the United States.
Trudeau expressed satisfaction with the move as U.S. officials said they’re “confident” a tax on imports is no longer needed to pay for broader tax reform.
The border adjustment tax would have been a “serious impediment to trade with Canada,” he said.
“There is no economic relationship anywhere in the world like the one between Canada and the United States and that needs to be protected,” Trudeau added.