CROSS-BORDER SHOPPING -- NEW STYLE! 

More than 100,000 Canadians cross the Canada/U.S. border each week for what they consider to be shopping bargains: milk, butter and eggs at half or less of what they pay at home and a wide selection of cheese at up to 80 percent off. The trip can pay for itself in savings on gasoline alone, which runs around half the Canadian price.

Naturally, Canadian retailers are upset, but this is not just a local phenomenon. In these times of rapid change similar things are happening around the world. And, this is just the beginning.

Another new border is appearing ... creating a country within a country: Indian Territory. This "country" is in Canada. It's in the U.S. as well and it dissolves the conventional U.S./Canada border. That anomaly, a relic from the past and possibly a creation of the future, where traditional taxes don't apply. When Canadians believed what they paid in taxes was fair for government services provided, there was little interest in going to the trouble of entering Indian lands to make purchases. Today the rising voice of dissent is heard loud across the land. Some are interested in purchasing on Native Indian reserves to spite a government in which they no longer have confidence. If they can do that and save a few bucks so much the better.

But the picture is changing. First Nations people are already profiting. Throughout Canada, a short drive in most cases, will bring you to Native land where cigarettes sell for $30 a carton, instead of $50, a saving of around $20. No customs official checks merchandise purchased when you go back to "Canada", because technically (and legally) you never left it. Government made this arrangement, let them live with it.

Bingo, can now be played with impunity on a Native reserves, both in Canada and the U.S. However, because of the relatively small attendance in any one geographical location the "pot" usually does not offer the huge golden sweepstake winnings that attract really large crowds. Suppose all these small bingo halls were hooked up via satellite and pooled their take, along with small local prizes, into a gigantic pot prize for all players across North America? See the possibilities?

Once this is established, why stop here? The GAPS (Global Aboriginal Peoples Sweepstakes) could outshine local bingo, casinos and lotteries. Today's planetary communications system makes it all possible. It will happen.

What is happening in Europe shows how consumers spend with their feet. Look ahead to Europe on January 1, 1993: Today a consumable bottle of French wine sells for $1.60 in France. For less than double that you get a tastable upgrade. In Britain you pay double for either, thanks to the British excise tax of $2 per bottle. In France it's 40 cents. Good French beer, according to Vancouver Sun columnist Nicholas Hills, sells at $8 for 10 bottles. The British price is about $12. In Canada a similar discrepancy with the U.S. has long been prevalent.

On January 1, 1993 a Brit can import 10 cases of French wine -- 120 bottles -- all duty free! Plus one case of spirits or 12 bottles of whisky, 800 cigarettes and 20 crates of beer. Now that's a New Year's! And I don't even drink.

The side effects, outside of monumental hang-overs?: Fewer people flying to southern Europe for free drink-free, duty-free flights. Imagine the implications here when a First Nations reserve becomes the equivalent of a stationary luxury cruise ship! And, selling cars too.

* * *

< previous | chapter index | next >
back to Main Chapter Listing
back to Home Page