NEWS RELEASES
STATE OF MICHIGAN TO REDUCE CANADIANCARRIERS' BUSINESS TAX BY TWO-THIRDS
December 11, 2000 (11:30 a.m. EST) No. 268
STATE OF MICHIGAN TO REDUCE CANADIAN
CARRIERS' BUSINESS TAX BY TWO-THIRDS
International Trade Minister Pierre Pettigrew welcomes a Michigan bill that will result in
Canadian truckers paying substantially lower taxes in the State of Michigan. This is a
very positive development because Michigan is one of Canada's major trading partners.
"I would like to congratulate the Canadian trucking industry and the State of Michigan
for reaching this understanding. This is good news for both Canadians and the people
of Michigan. I am satisfied with the progress that has been made by taking a co-operative approach and working together," said Minister Pettigrew.
The newly passed law solidifies an agreement reached on October 3, 2000 between
officials from the Canadian trucking industry, the Government of Canada, and the
Province of Ontario with the Michigan Department of Treasury.
The October agreement was the product of a true team effort involving government and
industry. It was reached with the active involvement of officials from the Department of
Foreign Affairs and International Trade, particularly the Canadian Consulate in Detroit,
and representatives from the Canadian trucking industry
By reducing what could have been a significant tax liability, the amendment to the
Michigan Single Business Tax will help to sustain the significant trade and investment
relationship that Canada currently enjoys with the State of Michigan. Indeed, the
trucking industry is of vital importance to sustaining and improving the $96.7 billion
worth of trade Canada did with that state in 1999. In that year, trucking companies
hauled some $63.7 billion worth of goods, or 71% of those business transactions, to
Michigan.
The Government of Canada, in co-operation with Canadian industry, has been working
since February of 1998 with officials from Michigan to ensure that all Canadian
companies doing business in that state are taxed in a fair and consistent manner, in
accordance with internationally accepted taxation principles.
"Of course, there is still much to discuss. But this agreement serves as a guide to future
positive developments," concluded Minister Pettigrew.
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For further information, media representatives may contact:
Sylvie Bussières
Office of the Minister for International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
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