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“A modernization of the Canadian de minimis level would be beneficial to both countries.”

Changing Canada’s limit is a high priority for the U.S. side in NAFTA talks.

An American source familiar with the talks tells The Canadian Press that’s one reason the U.S. mentions the issue in its published list of negotiating objectives, which sets a specific $800 target.

The source says it’s no accident that other U.S. demands are vaguely worded and devoid of hard numbers to leave negotiating room; the demand to change the limit known as “de minimis,” on the other hand, is clear and unequivocal.

The change is being fought by retailers within Canada.

They say it would not only send customers abroad, damaging domestic vendors while they’re making investments in new online platforms. But they say it’s also patently unfair — foreign competitors would get tax advantages not enjoyed by vendors in Canada.

The Retail Council of Canada says a higher limit could create an uneven playing field to the detriment of domestic vendors — who are stuck charging federal and provincial sales taxes which average 12.3 per cent across the country.

They say the U.S. doesn’t have similar concerns — the U.S. has no federal sales tax.

“There is no comparison between Canada and the U.S.,” the council says on its website.

“The United States does not have a federal sales tax, so there is no tax advantage created for inbound shipments. The U.S. also does not collect state and local sales taxes at the border or for interstate shipments.”