The Harper government aims to cut the Canada-U.S. price gap. But The Globe and Mail says, ‘Great, but how?’
From Global News:
The Conservative government will take steps to bridge price gaps between goods sold in Canada and the United States, Global News has learned.The government is planning to announce details on these steps in tomorrow’s speech from the throne, and falls comfortably into the speech’s emerging theme—a special focus on consumers.
“The Harper government will focus on growing the economy, reducing costs and improving choices for consumers,” a senior government source told Global News. “We will take action to make it easier for families to save more of their hard-earned dollars.”
Earlier this year, a Senate committee wrapped up a study into potential reasons why price discrepancies exist on many consumer goods, including cars, books, over-the-counter medication, clothing, food and iPhones.
And from The Globe and Mail:
The Canadian government wants to narrow the gap between consumer prices in Canada and the United States, but that may be easier said than done.
As The Globe and Mail’s Steven Chase reports, the government through its Throne Speech this evening will promise to try to eliminate the Canada-U.S. price gap, which, according to the latest study, is running at about 10 per cent.
But while policy makers could work to cut tariffs, particularly on products no longer made in Canada, there’s no quick fix, the authority on the subject warned today.
“The reality is that there is no easy or magic solution, where Ottawa could just pull a lever and – poof – the gap would vaporize,” said chief economist Douglas Porter of BMO Nesbitt Burns, who has tracked the price gap for years