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SENATOR SUSAN COLLINS URGES PRESIDENT TO DISCUSS CROSS BORDER TRADE WITH CANADIAN PRIME MINISTER

WASHINGTON, D.C. – When President George W. Bush meets with Canada's Prime Minister, Jean Chretien during the G-8 Economic Summit, Senator Susan Collins is calling on the President to discuss the disparity between U.S. and Canadian personal exemption allowances, which is harming small businesses in northern states across the country.

"In Maine, the disparity in personal exemption allowances affects communities from Calais to Madawaska. I hear repeatedly from community leaders and small business owners about the difficulties of trying to compete on a playing field that is simply not level," said Senator Collins.

To illustrate, an American traveling to Canada or Mexico for fewer than 24 hours is exempt from paying duties on $200 worth of merchandise on return to the United States, and for trips of more than 48 hours, on $400 worth of goods. In contrast, a Canadian traveling to the U.S. is allowed a duty-free personal exemption allowance of only $50 of merchandise for a 24-hour visit and $200 for a 48-hour stay, and these are in Canadian dollars. Therefore, businesses along our northern borders are harmed because Americans traveling to Canada generally can return to the U.S. with significantly more duty-free merchandise than our neighbors who visit the U.S. are permitted to take home.

"This issue is a challenging one that requires hard work and skillful diplomacy," the Senator said. "Unfortunately, the previous Administration did not pursue this issue."