If you wonder why you pay significantly less when you head south of the border to do your shopping, you’re not alone – and the Canadian Senate says it’s time to do something about it.
The Canada-USA Price Gap, a new report issued by the Standing Senate Committee on National Finance, examines the potential reasons for price discrepancies of certain products between Canada and the U.S. The pricing of numerous products – ranging from automobiles to books and clothing – was examined.
Examples of some of the price discrepancies found include:
- aspirin (81mg low dose, 350-count): U.S. $10.16, Canada $21.78 – a difference of 114%;
- ketchup (2.5 litres): U.S. $3.92, Canada $6.90 – a difference of 76%; and
- freezer bags (150 pack): U.S. $6.10, Canada $9.24 – a difference of 51%.
“It is hoped that this report will improve Canadians’ knowledge of the causes of the price discrepancies for certain products between Canada and the United States and will provide the federal government with four recommendations to narrow these price discrepancies,” the report states.
The recommendations are that:
- the Minister of Finance conduct a comprehensive review of Canadian tariffs, noting their impact on domestic manufacturing;
- the federal government, through the Canada-United States Regulatory Cooperation Council, integrate safety standards between the two countries to decrease price discrepancies without compromising safety standards;
- the federal government analyze the costs and benefits of increasing the current $20 de minimus threshold for postal shipments (the value of postal shipments that can be imported duty- and tax-free into Canada); and
- the Minister of Canadian Heritage examine the costs and benefits of reducing the 10% mark-up that Canadian distributors can add to the U.S. list price of American books imported into Canada.
The study includes the perspectives of such experts as government officials, consumer groups, retailers, academics and accountants.
