Throne speech promises to close cross-border price gap

Wednesday’s budget-focused throne speech promised, among other things, to take steps to close the gap between prices for goods purchased in Canada as compared to the United States.

It's a message to cross-border shoppers that the government intends to do all it can to keep citizens' dollars in Canada…

At this point, it's not clear what that action will look like, however there are a range of factors affecting the cost of goods in this country — including the transportation of goods further for a smaller population base and the cost of paying Canadian minimum wages…

Many bank studies show prices in Canada are about 10 per cent more than in the U.S.

One expert says the Harper government's options are limited.

“The best they can do is create an environment that is more conducive to competition and to reduce trade friction. That is bring down barriers and [allow] more items back duty free,” Werner Antweiler, of UBC’s Sauder School of Business, said.

Retailers in Canada often complain they're charged more by U.S. suppliers because Canada's marketplace is smaller and distribution costs higher…

The speech also promises to open up Canada's liquor laws so that Canadians can take beer and spirits across provincial boundaries…

This has been excerpted from the 17 October 2013 article by the CBC, and is available in its entirety at http://www.cbc.ca/news/canada/throne-speech-promises-to-close-cross-border-price-gap-1.2075555.