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Canadian trade center sparks interest

by Heidi Desch / Whitefish Pilot
| April 25, 2012 9:31 AM

A first meeting was held last week to gauge interest in creating a trade center in Calgary that could help Montana tap into Alberta’s booming economy.

Dee Brown, a Hungry Horse businesswoman and candidate for state Senate District 2, organized the meeting at Grouse Mountain Lodge in Whitefish. The goal was to discuss the potential for the state to establish a center that would promote Montana. About 15 people attended the meeting.

“Canadians have a lot of extra money and we want them to spend money here,” Brown said. “The private sector in the last few years has been struggling, but the bright spot has been the Canadians.”

Brown said she set up the meeting to figure out if a trade center is a viable option and what others think. The idea is that the center would promote not just travel but also commerce in the state.

Joe Unterreiner, president of the Kalispell Chamber of Commerce, said there’s a lot of merit to the idea of creating a trade center.

“It could have a benefit to tourism and a general business benefit,” he said.

A recent rule change by the Canadian government will allow Canadians to bring more purchases back across the border tax-free. Visitors form Canada staying 24 hours in the United States now may bring $200 worth of goods back to Canada. Those staying 48 hours will be allowed to take $800 worth of goods back home. The previous limits were $50 and $400, respectively. The change goes into effect beginning June 1.

Whitefish resident Ed Lieser, who is running for House District 4, attended the meeting and said the trade center appears to be good idea.

“It seems like fertile ground up in Canada,” he said. “It seems like redistributing funds we’ve already got up there is a good idea.”

According to Brown, the state spends about $275,000 per year on international trade. The state recently made changes to its trade office in Taipei, Taiwan, that could result in the freeing up of funds for a Calgary trade office.

“We want to see dollars used in the best way that will come back to us,” Brown said.

Edwin Fields, of Fields Construction Services in Whitefish, said he has personal experience dealing with Canadian residents coming south to shop for building supplies.

Fields said he worked with a couple from near Calgary who purchased materials in the Flathead Valley to construct their house in Canada. They found materials to be more reasonable than at home. Shipping or transporting goods across the border can, however, often be challenging, he noted.

“People are coming down here and buying a lot,” he said. “I think this trade center is a no brainier. We can sell more to them up there and more while they are down here.”

Carol Pike, director of the Columbia Falls Chamber of Commerce, said she likes the idea. She pointed to the local hospitals promoting themselves in Canada, as well as the real estate market.

“I think this is the natural progress,” she said. “This isn’t just about the Flathead Valley, it should be a statewide promotion.”

Brown purposes involvement by the Legislature during its 2013 session. Because the idea will take time to develop, Brown said, she would like to see work begin now on legislation to create a trade center.

“This topic is too big to start in November,” she said. “We need to draft a bill to take to the Legislature no matter who is elected.”