A former senior bureaucrat with the Federal Government says Canadians should be concerned about a study being done by the US Federal Maritime Commission, investigating claims of “government created disparities and potential unfair practices benefiting Canadian Ports at the expense of US ports”.
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Higginbotham noted that a coalition of six major American West Coast ports, and two railroads, are arguing that the American government should collect a tax on U.S.-bound container cargo that originated from a Canadian or Mexican port.
Such a levy would off-set the millions collected at American ports through the Harbor Maintenance Tax, which is now being viewed as a possible reason why shippers are choosing Canadian ports.
Higginbotham, a former diplomat at the Canadian Embassy in Washington and later the senior bureaucrat responsible for Transport Canada’s Asia-Pacific Gateway initiative, said Canada’s experience with the softwood lumber dispute is a reminder of the risk.