Feds announce Windsor-Essex as new Foreign Trade Zone
Published Monday, July 31, 2017 10:33AM EDT
Last Updated Tuesday, August 1, 2017 1:04PM EDT
The federal government announced a new Foreign Trade Zone (FTZ) Monday that it says will create new jobs and business opportunities for Windsor-Essex.
Navdeep Bains, Minister responsible for FedDev Ontario, made the announcement in Windsor.
"More than half of North America's population lives within an eight-hour drive of Windsor-Essex so clearly this is a hub of economic activity and all major forms of transportation service exist within this region," he said.
The so-called FTZ point will promote Windsor-Essex as an international trade hub and will help local businesses access foreign market.
It is now the second FTZ point in Ontario.
The announcement has the support of Farrow Logistics, a firm that helps Canadian and U-S companies efficiently move goods across the border.
Vice President of Government Industry Relations, Laurie Tannous, says there are a number of benefits for their clients. They include importing a greater number of goods and deferring duty for up to four years.
"We're very excited about it and Farrow was excited to host the announcment here in Windsor," says Tannous. "We think it's a great opportunity for not just Canada but for clients looking to come to this region."
There's also a benefit for smaller retailers, like clothing retailer Freeds. Co-owner Ari Freed says they can offer incentives to American customers.
"They are able to purchase from us and if we ship the goods back to them over the border, they are able to receive the clothing tax free," notes Freed.
Windsor-Essex Economic Development Corporation says information sessions will be held for local business in the next few weeks. Rakesh Naidu, its chief operating officer, says international businesses understand what FTZ can offer them in terms of programs and tax deductions.