You learn a lot growing up on a border town. My parents met as customs officers at the cross-section of the I-95 and TransCanada Highway in New Brunswick, the two longest highways in the world at the time. Duties were a regular part of life. The U.S. side had a movie theatre, a McDonalds, and a JC Penney, along with the best Chinese restaurant. A weekly run for gas and milk was a routine activity. My aunt, uncle and first cousins also lived there. On the way back, of course, was the rushed collection of receipts to provide the total amount purchased to the custom officer to make the decision on whether to let us keep on our way or ask us to come in to the office and pay…our duties. Given that my parents were former custom officers, we were pretty compliant; except for maybe the new pair of sneakers on my feet.Sometimes we would order goods from the catalogue, usually L.L. Bean or Sears. At that time, duties on shipped goods would apply if the value was over $20. Almost forty years later, that $20 threshold hasn't changed. It's the same, now one of the lowest in the world. The United States, our closest and most treasured trading partner, has raised their's to $800 USD. Australia, our partner in the Commonwealth, is at $756 USD.Why is this important? The world has changed since the time where I would make these weekly border crossings. Today, more and more, we buy goods online and have them shipped to us. Trends indicate Canadians are choosing to shop online and are often subject to paying 30% in duties and taxes on top of their purchase. In 2016 alone, despite the year closing at average foreign exchange rates of 0.75 USD and 0.68 EUR – some of the lowest rates seen over the course of the last decade – the frequency of online shopping by Canadian consumers for foreign goods was still substantial. That year, Statistics Canada reports that nearly half (40%) of the $19.2 billion in Canadian ecommerce sales were from foreign retailers.This week, in Ottawa, NAFTA negotiators are descending upon the city.  On the list of American requests is that Canada raise their $20 threshold (otherwise known as De Minimus). The argument against this is strong, and for good reason.  While traditional brick and mortar retailers still play a central role in the economies of both Canada and the US, with recent developments like the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union – an agreement which will offer Canada favourable access to a market boasting economic activity of $18 trillion, annually – we can only estimate that the presence of online retail in Canada will continue to expand. If we are committed to signing collaborative and outward-looking trade agreements like CETA that open new markets for domestic retailers, then we must also ensure that those very retailers are backed by policies that support their ability to participate. It's never been more important for us to shed protectionist values and engage new market opportunities to remain competitive in today's growing digital economy.According to the STORES Top 100 Retailer list of 2016, Amazon ranked 7th in terms of total revenue; Amazon outstripped traditional retail giants like Target, Macy's, TJX and several others. For online sales only, Amazon far exceeded the proceeds of any company in the US. According to 2016 National Retail Federation figures, Amazon came in at nearly $95 billion in sales that year alone, showing a growth of more than 19% since the year prior. eBay, the largest runner-up to Amazon for ecommerce confirmed annual revenue that surpassed many traditional retailers as well, totaling nearly $9 billion during the same period.Source: Global Express Association, 2016.Fearing adverse effects to the traditional retail market, some in the retail sector are currently leading the case in Canada against de minimis increase. Arguing that increasing de minimis thresholds to levels similar to our competitors would produce an exponential increase in online shopping, in the sector several argue that this change would usher in negative consequences for Canadian retailers and their employees, while also reducing government revenue from duty and tax collection. Using this logic, they assert that a significant rise in de minimis would not only fail to benefit Canadian companies, but would create a scenario in which foreign retailers would push Canadian retailers out of the market, altogether. However, considering that nearly half of all online orders in Canada already come from foreign retailers with the current $20 threshold, the argument is somewhat of a hard sell.Increasingly, Canadian consumers are showing their discontent at the current policy. In a study conducted by the Canadian American Business Council, 76% of Canadians were found to be in support of raising the duty-free limit to $200 - a figure still well-below the US' current de minimis limit of $800 and roughly on par with the EU's limit of €150.There are many issues currently at play in the debate over raising the Canadian de minimis threshold. From the impact on tax revenues, to higher paying jobs, to the effect on Canadian small businesses and consumers, the subject can be looked at from several different lenses – each with their own sets of potential incentives and drawbacks. Yet, while we are unlikely to see drastic revisions like the call by the U.S. Government to raise Canada's de minimis threshold to $800 USD (more than $1,000 CAD), it's increasingly clear that some kind of change is necessary.For more information please see our Policy Brief.Jeremy Depow is Vice President of Policy and Research for the Information and Communications Technology Council (ICTC). Jeremy works to support ICTC's objectives of strengthening Canada's digital advantage in a global economy with the aim of enabling a competitive and inclusive digital economy, an innovative and entrepreneurial society, and a trusted and secure internet. Prior to joining ICTC, Jeremy served as Executive Director of Canada's Digital Policy Forum, a national think-tank, which he founded to intensify dialogue and collaboration on building digital policy in Ottawa.