Why products are more expensive in Canada

'The Canadian dollar has been hovering near par with the American dollar for two years, yet consumers are still waiting for the gap to narrow between Canadian and American retail prices. In some cases, Canadians pay between 30 and 40 per cent more for the same products. 

The relationship between a stronger dollar and consumer prices is complex. Here are some of the factors that retailers claim influence the price difference between Canadian and American products. 

• Higher labour costs in Canada
• Import tariffs (Canadian book import regulations allow American publishers to tack a 10 per cent mark-up on top of the U.S. price of a book sold in Canada)
• Higher freight costs (the population of Canada is about the same as California but our geographical area is roughly that of the continental U.S.)
• Bilingual labeling requirements
• The time and cost to update price listings and catalogues
• Import contracts are often signed weeks or months ahead of the product arriving on store shelves...'

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