Duty-Free Stores Seek Financial Support Amid Decline in Cross-Border Travel
Canadian duty free stores face collapse as sector calls for urgent financial aid and export rule clarity amid U.S.-induced decline.
OTTAWA — An urgent appeal has been made by the association representing Canada’s duty free stores and a coalition of 15 border city mayors, who have jointly sent a letter to the federal government seeking financial support and clear guidance on export regulations. The request comes as the sector faces unprecedented challenges brought on by a significant drop in cross-border traffic, largely attributed to the ongoing U.S. trade war.
The Frontier Duty Free Association reported that its network of 32 stores nationwide has experienced a dramatic revenue decline, with sales plummeting by 60 to 80 per cent. This downturn is particularly concerning for small border communities where duty free shops are described as key local employers and economic anchors.
Calling for “immediate” financial relief, the association emphasized that without prompt government intervention, the viability of these businesses—and the jobs they support—could be at risk. “Our members are being hit hard, especially those operating in smaller communities across Western and Eastern Canada,” said executive director Barbara Barrett. “Traffic has dropped off steeply, leaving many stores struggling just to remain open.”
In addition to emergency funding, the association is urging Ottawa to review and align its excise tax policies and the export status of Canadian duty free products with those in the United States. The current regulatory gap, industry leaders argue, puts Canadian duty free businesses at a competitive disadvantage compared to their U.S. counterparts. Harmonizing these rules, the group contends, would bolster Canada’s border economy and ensure a level playing field.
With cross-border shopping and tourism still slow to recover, representatives warn that further delays in support could lead to layoffs or potentially force some stores to close their doors permanently. The call for clarity on export rules is also intended to help operators plan for the months ahead and attract travelers back to border crossings once trade tensions ease.
