The feds should review Canadian tariffs to help slash the price gap on certain products sold in Canada and the United States, says a Senate finance committee report tabled in the Upper Chamber Wednesday.
After conducting a series of public hearings beginning in Fall 2011, the Standing Senate Committee on National Finance released a report designed to “shed light on why large price gaps remain even when the Canadian dollar is at or above par.”
“The study showed that there are many variables that contribute to the price of products. There is no one definitive explanation for the price discrepancies for products between Canada and the United States,” said committee chair Senator Joseph Day.
During the public hearing process, the finance committee heard from 53 witnesses such as government officials, retailers, and consumer groups before it released its findings.
Among its recommendations, the committee proposes that “legislative barriers” should be reviewed to help narrow the gap between prices on certain products and to ensure the Canadian market can be competitive.
“With a more competitive market and access to better information on prices, Canadian consumers will be able to more fully benefit from a strong Canadian dollar,” the report stated.
The senate group reviewed the pricing of numerous products “from ice skates and jeans to automobiles and books” and found each product had many factors which influenced cost.
The report also acknowledged that “Canadian consumers are feeling ripped off” and wonder if they are “being gouged.”