In increasing numbers, Canadian consumers are heading south for an overnight stay and shopping to take advantage of new cross-border allowances and the high dollar.
Cross-border trips in June, the first month the higher exemptions took effect, were up to levels not seen since 1972. Back then, the dollar was also above par, and gas prices were low.
It seems many are willing to spend time in border lineups and pay for the extra gas to save on items.
The downside is that local retailers take a hit, and when they do, they cut back on costs – such as new hires. And those much-hated taxes (which pay for health, education and other important programs) take a hit as well.
Local business owners play major roles in sponsoring myriad local activities and initiatives, such as youth sports teams and charitable causes. As revenues decline, so does the ability of businesses to give back to the community.
Retailers in border communities – like White Rock and South Surrey – are particularly impacted.
And the Semiahmoo Peninsula is an even closer-knit community than others. We observe in times of celebration and in times of grief just how close it is. Neighbours are friends of friends, merchants are each others’ customers.
We can see that each action we take has a reaction, and when we try to make a difference through community initiatives, subsidizing sports or cultural activities, or fundraising for worthy causes, we understand the pie can only be sliced so many ways.
On one level or another, cross-border shopping impacts all of us. By failing to support local business, we may save in the short term, but lose in the long run.
Canadians are, understandably, looking for bargains – and local business must recognize this as a market reality.
But there is a point where the lure of cheaper U.S. products will come back to haunt all of us.
A long-term decline in retail jobs and declining tax revenue can do major damage to the B.C. economy. Tax shortfalls must be made up somewhere, which means everyone (including cross-border shoppers) will pay more.
This is not a situation that was manufactured locally. The federal government encouraged this flow of dollars to the south, with the cross-border allowance changes it made.
Now it’s incumbent upon the same government to address factors such as high import tariffs that have impeded the competitiveness of many a Canadian business.