Canada’s shipping industry dodges a ‘massive tax grab’ in the U.S.

WASHINGTON – Canada’s shipping industry appears to have steered clear of a threatened U.S. cargo tax.

The push for a tax on cargo from Canada and Mexico was excluded from the new Water Resources Reform and Development Act.

The legislation was signed into law today by U.S. President Barack Obama.

The final bill negotiated between the two houses of Congress addresses some complaints from Washington state lawmakers, who say their ports are currently disadvantaged by the American tax system.

But it doesn’t include their call for a tiny tax — 0.125 per cent — to be collected by U.S. Customs on all cargo carried into the U.S. via Canadian ports.

Gary Doer, Canada’s ambassador to the U.S., says the tax idea would have been a “massive tax grab” and caused traffic problems.