Sault Blog

The United States of America has instituted tariffs worldwide, including against its longstanding trading partner, Canada. The rationale is that the USA is unfairly treated; the rest of the world is taking advantage of trade agreement loopholes, creating unacceptable trade imbalances. These tariffs are to re-shore industries that moved manufacturing to countries, allowing low wage and employee standards, reduced production costs, and negligent environmental standards. The “Tariff Hawks” want a review of the 35 years of NAFTA and other WTO trade deals to see which delinquent nations and hyper-global corporations are taking advantage of the USA.

I agree with the United States’ arguments because the same can be said about the City of Sault Ste. Marie, ON. At the Council Meeting on March 17th, the discussion centered on a new “buy Canadian” policy for any purchases made by all City Departments. Gordon Food Services (GFS), an American Food Service Distribution Company, holds the accounts for all City Arenas with an 80 – 90 percent business saturation. Changing the food service account to the Canadian Flanagan’s Food Service company would support the new buy Canadian policy over both GFS and Sysco Food Services (also American). There is one significant loophole concerning all three food service companies; none have a warehouse or distribution center in Sault Ste. Marie. All three businesses are based out of their Sudbury or Southern, ON warehouses and distribute directly to the Sault. All three food service companies conduct a fair amount of business in the Sault; one has a large City Arena food service account, and all three companies do not pay municipal taxes. Can we consider that an unfair trade imbalance? Gordon Food Services in Sault, MI, has a small warehouse/retail store on the Sault, MI I-75 Business Spur but does not have a similar warehouse/retail operation in Sault, ON. Shouldn’t the first stipulation for doing business with the City of Sault Ste. Marie requires that companies have a local presence, hire employees, pay municipal taxes, and then preferably be Canadian.

Saultites, for decades, used the urban slang “going across” to pick up that Weir’s Pack and Ship purchase/package, shopped for clothing, food, milk, turkeys, gas, cases of beer, booze, etc., then under-reported the purchase amounts, skirting paying duties and taxes. With an understaffed Canadian Customs Plaza, usually one, maybe two booths open, Border Agents would allow lines of vehicles through the Canadian border with very few or no cars pulled in for secondary examination. I am delighted that, finally, every person who makes purchases in the US and transits through our Canadian Customs Border Plaza will have to pay a duty, tariff, and HST upon entry into Canada.

We are constantly informed about the number of vehicles crossing the International Bridge. Still, our EDC has never formulated a report on the economic disparity between Ontarian expenditures in Michigan and Michigander expenditures in Ontario. What is the financial loss in dollar amounts of Canadians shopping in Sault, MI, every month? I would like to know how much money Canadians (Saultites) spend in Michigan monthly because that information would show an unfair trade imbalance.
What is evident is the economic support that Saultites have for decades contributed to Sault, MI, building a vibrant retail sector in a City a fraction of our size. As the Sault, MI retail sector flourishes, ours is in decline, with our Station Mall deterring on collapse, resulting in the further loss of $2.5M per year of municipal taxes.

Like it or not, the American Tariff Hawks will review every country and hyper-globalization company and find out who has been taking advantage of the USA; but who is doing the same for the City of Sault Ste. Marie? Who will be the person to tell GFS; if you have a warehouse in Sault, MI, why can’t you open one in Sault, ON: it is supposed to be a fair trade agreement. On a personal level, this existential free-trade war with the United States highlights the understanding that the money “we save in Sault, MI” comes at the expense of businesses in Sault, ON.

Mark Menean, http://www.saultblog.com