“We’re hanging on by a thread” – FDFA Executive Director addresses upcoming federal budget concerns

This week, GTR Magazine sat down for an exclusive interview with Frontier Duty Free Association (FDFA) Executive Director Barbara Barrett at the 2025 FDFA Summit in Toronto, Canada, for an update. This year, the association held a condensed version of its annual event, which welcomed representatives from 15 land border duty free stores across Canada and close to half the number of delegates versus 2024. The conversation centered on FDFA’s ongoing advocacy efforts, the impact of the Canada-U.S. trade war on the duty free and travel retail industry and the immediate future.

Since the start of the trade war in February, FDFA members have been in crisis mode. As noted by Barrett, this challenging moment in time derailed last year’s shared excitement among duty free operators regarding the progress of post-pandemic recovery. With the final version of the federal budget set to be released in the next several weeks, FDFA is working hard to ensure its members qualify for tariff-related financial support through Canada’s Regional Development Agencies (RDAs).

A team effort

Barrett believes the association’s shared approach to advocacy has helped to make a stronger case. “Leading up to the budget, we needed our members to be all in – and they stepped up,” she stated. “We needed those at the grassroots level to raise their voice because Members of Parliament want to know what’s important to their constituents.” Media coverage of the cause has featured duty free representative of all levels.

Ahead of the government’s decision-making, the association has been in direct communication with both the Prime Minister’s office and the Finance Minister’s office to convey the significance of the duty free channel and its request for immediate action with targeted support. “We know land border duty free stores are viable businesses. They have been part of the tourism fabric of Canada for more than 40 years,” said Barrett. “We are in the conversation and we are breaking through in a way that is hopeful.” Some of these shops serve as the pillar of small communities that count one these businesses as employment centers and economic drivers.

Barrett noted that the budget, as introduced, sets out broad priorities but leaves key details unresolved. “The devil is in the details,” she added, emphasizing that work now shifts to ensuring duty free stores are confirmed as eligible under the new tariff relief funds being administered through the RDAs. Barrett also pointed out that there is still time to influence the budget before it passes. Support from within the Liberal Caucus has helped raise the visibility of the issue, and FDFA continues to push for progress on its remaining priorities.

Sense of optimism

Recently published preliminary data by Statistics Canada revealed that Canadians continue to avoid traveling south of the border. The month of October marked another major drop in year-over-year visitors and the tenth straight month of lower volumes. The agency also reported the number of Canadian residents who returned by car from the United States fell to 1.4 million last month, a 30.5% decline from the same period in 2024. Woodstock Duty Free Shop was forced to close in August and others are expected to follow if the government does not deliver on FDFA’s request.

Speaking about expectations for the normalization of cross-border travel and the upcoming holiday season, Barrett shared, “We’re hoping that a trade deal will be struck soon, which will ease tensions with the U.S., and that travel will return. We’re hearing that a trade deal will be struck soon anecdotally.”

She continued, “As unpredictable as this situation is, I believe we’re going to get through it.” This sense of optimism was on display at this week’s event as delegates celebrated Canada and their commitment to the channel.