Whatsupwiththat? Canadians paying more for goods than Americans

We as Canadians can't seem to get a break when it comes to paying higher prices for things than our southern neighbors. At a time when our dollar was worth more than theirs, there have been countless reports of Canadian shoppers going south to shop and being amazed at the savings. I even heard one report saying that a Canadian couple went and bought a high-end vehicle and saved almost $30,000 off of their purchase compared to if they had bought it here. $30,000! That's not chickenfeed, as they say. That's a hefty chunk of cash. So I thought I'd do a little research to see what kind of explanations the experts were offering.

One man said, "We've spoken to people at the Canadian Chamber of Commerce, the BC Chamber of Commerce, and we've talked to people in the community. Everyone identifies it as an issue. We just can't come up with sort of what would make sense as a concrete plan of action."

No duh. A very concise, and helpful, explanation.

He continues with, "We don't know if we can take it much further. [It's] A high-level, complex issue with so many road blocks. I've come across no one... that just don't buy stuff, which is a pretty simplistic answer."

Seems like what he's really saying is that there is absolutely nothing that can and/or will be done about the situation.

After all, this is the U.S. of A, a kingdom unto themselves, at least as far as the government and the economy is concerned.

Different reports that I read said an average of 20% more was paid here in Canada than in the 'States' for the same items, and as high as 30-34% more!

There were numerous Canadian retailers that claimed that the price difference was due to higher duties and taxes and that the higher cost, in general, of doing business in Canada. But what about the 30+% differences?

Another explanation was that 'The American market for consumer goods is quite simply more competitive than in most other countries, Canada’s included.'

It sucks to be us, then.

BMO Capital Markets’ deputy chief economist Douglas Porter says that “Companies and firms will do whatever they can to keep prices in check in the U.S. and for that reason it is a bit of a shopper’s paradise in the U.S. where prices versus the rest of the world tend to be lower.”

So, there you have it. All the answers that you've been looking for, concerning all the questions you've been wondering about regarding our north-to-south price discrepancies. Feel any better? Not me. It's like a big brother making his little sister pay through the nose for something he's getting a lot cheaper. Hey, maybe that happens all the time...

L8r

J

Here's some sites that may be of interest to you if you cross often to shop:

http://www.cbsa-asfc.gc.ca/prog/nexus/menu-eng.html

http://www.crossbordershopping.ca

For a bit of official insight from the government of Canada, here is a link to a study done by statistics Canada regarding 'Do Canadians pay more than Americans for the same products?'

http://dsp-psd.pwgsc.gc.ca/Collection/Statcan/11-624-M/11-624-MIE2004006.pdf