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Identical cars, clothes, books come cheaper in U.S.

PAUL WALDIE AND GREG KEENAN

From Friday's Globe and Mail

Latest comment posted at 1:08 PM EST 24/09/07

Canadian-dollar prices are on average 24 per cent higher than U.S.-dollar prices on the same items, according to study ...Read the full article

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  1. W. Mayne from Canada writes: Instead of "outlining" why Canadians should buy cars here, why doesn't Toyota simply lower the price and let market forces dictate where we buy our cars! It would clearly appear that Canadians are subsidizing Toyotas purchased by Americans in the US. The only way to fight this is to either purchase in the US or postpone your purchase for a year or two and let market forces take over.
  2. David Haglund from Austria writes: It's not a subsidy, it's a time lag. But the more people do this (buy in US, sell in Canada) the better - this is classic arbitraging, and in theory this mechanism is what brings prices in line with reality to a new equilibrium. I think within a few months the major disparity will go, at least on tradeable goods.
  3. Lawrence Hutchinson from Houston, United States writes: The savings Americans make on buying autos and other big-ticket items we turn around and spend on medical care.
  4. m. r. from toronto, Canada writes: if I am right, U.S. retail price includes a federal tax of about 8%. Canada adds the GST to the retail price. thus there is an even wider price increase if you buy the same item in Canada.
  5. Jack Bauer from Canada writes: Lawrence don't knock your medical system, yes ours is not free we are taxed to the hilt for the pleasure of not being able to get a family doctor and waiting in lines so long that you will likely get another disease before the doctor sees you...but I will buy your cars
  6. G. Sam from Canada writes: Obviously the most outrageous price differential of all those show is on Gasoline. It has always been thus and the argument given by the thieving Gas Monopoly is the higher Canadian taxes on gasoline. That is really a crock, and until we all speak louder into the ear of our politicians it will never change! Both the 'Gas Gougers' and the producers and the government are in collusion to screw us all!
  7. T B from Canada writes: David Haglund wrote that "... I think within a few months the major disparity will go, at least on tradeable goods"
    I hope so too, but if the oligopoly among the big companies remains, it's going to be hard.
    Some companies don't even want to ship online purchases to Canada.
  8. Bill M from Canada writes: Jack Bauer from Canada writes: Lawrence don't knock your medical system, yes ours is not free we are taxed to the hilt for the pleasure of not being able to get a family doctor and waiting in lines so long that you will likely get another disease before the doctor sees you...but I will buy your cars

    Jack, you're right. We have to wait months sometimes for treatment. Our neighbours to the south get treatment immediately, if they can afford it that is. Because a good portion of their population can't afford it, they aren't in line waiting, taking up space. They're sitting at home waiting to die. It's like the airport when there's a seat sale. Lineups miles long as everyone checks in. Everyone can afford a flight somewhere. But if the airlines suddenly raised the price to fly to a minimum $10,000, those who could afford tickets wouldn't be facing a huge lineup. Those who couldn't afford it would just be sitting at home, niot getting in anyone's way.
  9. Tim Bee from Canada writes: As Mr. Hutchenson says, our (Canadian) costs include much of our cost of health care, which amounts to about 15% of GDP in the US and 10% in Canada.
    So if you go to the US to buy a car, don't blame anyone but yourself for waiting times in hospitals and a lack of doctors because you are shirking your responsibility to help pay fund them.
  10. f c from Canada writes: David Haglund wrote that "... I think within a few months the major disparity will go, at least on tradeable goods"....sorry to burst your bubble. We have had a $Cdn over $.90 for some time now and we have not seen one bit of price movement. I would love to see better prices too....but it will not happen. Large companies will cite the fact that they are having export problems and the only way to cover this disparity is to leave things status quo.

    Don't expect the government to help either....well the taxpayer at any rate. Flaherty has mentioned that he is willing to talk with manufacturers about extending their $1.3B tax break.....

    Where is our tax rate???? Might as well shop in the U.S. !!!
  11. Tim Bee from Canada writes: G. Sam from Canada writes: Obviously the most outrageous price differential of all those show is on Gasoline.

    We have a balanced budget. We use that tax money to pay for health care. So if you want to save on gas and then turn around and pay that savings for private health insurance, what are you gaining?
  12. Tim Bee from Canada writes: So why don't we just boycott non-essentials like non-shool related books and clothes? Cars, if possible etc.
    Don't buy any of these things for the entire month of October, unless absolutely necessary?
  13. Mike Potter from Hamilton, Canada writes: What this shows is that Canadian business and political people are intellectually bankrupt. The business model of Canada runs on the concept that prices never go down and the people of Canada owe you ever increasing profits. The companies seldom know much about the day to day running of their business but instead concentrate on producing financial statements that earn their CEO's absurdly large salaries and bonuses .
    The person who made the comment about "classic arbitraging" should change his definition to - an out of date method of making money off slack in the system. It produces nothing and rich people avail themselves of this method to make obscene profits for no work (work is different than effort - work produces something ).
    The person who made the comments on the medical system should check his source of numbers they seem to be suggesting an untruth.
  14. relampago relampago from Azilda ON P0M1B0, United States writes: I believe the majority of us have forgotton the days of our weak Canadian $.We sold our cars to the US with were produced. here with cheap Canadian labour and then paid a premium price to purchase it when it was re-exported back to this country.
    Our dollar then fluctuated between 40-60 cents.so then the argument to artificially keep the prices up was due to the fact that our dollar was weak thus the reason for the high cost.Today our dollar is on par and some of the exporters of goods sent to this country are saying that it could take up to 2 years for us to benefit by our strong currency.
    Its quite obvious that the powers to be have no intention of ensuring us the public that we are going to see and reap some of these savings that we should be getting.
    How many years did we pay dearly for our weak currency only now to find that were still going to pay regardless of the strength of our Dollar.
    As an afterthought have you ever questioned why it cost appr. $1200.00 to ship a car from Windsor to Toronto
  15. Tim Bee from Canada writes: relampago relampago from Azilda ON P0M1B0, United States writes: I believe the majority of us have forgotton the days of our weak Canadian $.We sold our cars to the US with were produced. here with cheap Canadian labour and then paid a premium price to purchase it when it was re-exported back to this country.
    Our dollar then fluctuated between 40-60 cents...

    I don't remember our dollar ever being 40-60 cents. When was that?
  16. HPB 3515 from Canada writes: In the 13 years under the liberals we became the second highest taxed nation on earth.....
  17. relampago relampago from Azilda ON P0M1B0, United States writes: If you dont recall having to pay a premium of 40- to 60 cents to buy a US dollar with Cdn currency you do have a short memory
  18. Jennifer R from Ottawa, Canada writes: What I can't stand the most are the clothing stores who have yet to adjust their prices. I went to the Gap's website & they are the only big store that does not ship outside of the US. They have stores all around the world but don't ship internationally from their site. Yet Lands End, LL Bean & Eddie Bauer do. I like Gap jeans but refuse to pay the much higher prices in the stores on our side of the border. It's awful. Guess I will be heading south of the border to shop for fall items.
  19. Vince Porter from Canada writes: I just priced a D3-190 Volvo marine engine. Canada: $26,000; USA, $20,000. Here I come, New Jersey!
  20. Mason Storm from Toronto, Canada writes: It's time the arrogant Americans got a taste of their own medicine!
  21. john gordon from Canada writes: I am all for cheaper prices however in many cases there is more to it. Transfer pricing tax laws demand that U.S. parents mark up their products to sell to Canadian subsidiaries -- right off the bat the Canadian company has higher costs and still has to run a business -- on the same products. Don't blame the companies for that.
    Also quite often Canadian goods go through 3rd party distributors or agents as where in the US they are direct from the manufacturer.
    Most book retailers actually purchase their products in Canadian $'s.

    Compare the price of the "same" products in the UK ---- basically double to what they are in Canada.

    Tough to compare everything to the largest, most commercial, highly discounted country called the USA.
  22. Cynthia C from Toronto, Canada writes: And not to mention, there's no national sales tax in the US. With the exception of Alberta, we have to pay TWO TAXES. Only one tax in New York and NO TAXES in New Jersey!
  23. Michael Pancer from Innisfil, Canada writes: I just priced a 2007 Ford Expedition loaded in Barrie at $70,000. I bought it in the U.S. last week for $42,000 after tax. The higher priced the car, the more you save. Border issues are pretty minor. You pay the GST at the border and the PST when you register it at the MOT.
  24. M Phillips from Canada writes: Apple Canada needs to get on the ball. I'd like to know how they can justify a 40% increase in price for a .Mac service renewal. This is not a commodity that sits on a shelf. It's an electronic web service. There is no reason in my mind why there shouldn't be an immediate price reduction other than the fact they are making a killing gouging Canadians.

    I understand the lag with "hard" goods. Some things like services I mentioned above are simply a scam.
  25. C M from Canada writes: There can be big savings on photo equipment - especially high end lenses:
    Canon 70-200 f2.8 IS:
    Canada: $2200 (including $400 savings)
    USA: $1700
    By my reckoning that's about a 23% difference.
  26. Bruce Batchelor from Langley, Canada writes: It is unsophisticated hooey to claim the old merchandise has to keep and old prices. No business except perhaps antique books and a few others runs on 9 or 12-month inventory cycle. Three months max, then its marked down. Only Canadians never get the markdown. Almost all corporate buyers hedge currency risk so they are trying to get paid twice, the second time by the consumer. Many stores do not pay for inventory until items are sold and they are in effect big cinsignment operations making points off the spread just like a commercial bank. There are some VERY BIG names on that list. Buy where you feel best!
  27. Omnibot 2000 from Canada writes: Wait - I'm still stuck on the $400 jeans part. If we can afford $400 jeans I don't think we really have anything to complain about...
  28. Timber 'n from Somewhere, Canada writes: In the US, consumers have access via the internet to millions of vendors, this drives prices down..BIG TIME. A careful shopper, can save thousands every year on everything from vitamins, to computers, to cars by using the internet in the US. Canadians don't have the same access to that market so big box stores in Canada are under little pressure to cut prices and compete. The Canadian dollar may be at par, but Canadians are not at par in the marketplace.
  29. Lowen Wrainger from Canada writes: Now that my boss knows I save by buying online and shopping in the US, he's thinking about cutting my pay.
  30. D K from Canada writes: Books are easy. Just pay in US funds.
  31. John Arthur from Canada writes: Purchasing these items from our American cousins is short-term Leftist thinking.

    You are shopping away yours, and your children's futures and costing Canadian jobs.

    You selfish idiots.

    Think with your heads and not your wallets! Or move to the US if you think it's so great.
  32. Old Folksinger from Canada writes: D K from Canada writes: Books are easy. Just pay in US funds.

    Wrong! Chapters / Indigo will not accept your argument - the Canadian price refers to location not currency they say. Nice try though!
  33. Edwin Longueville from Cavan, Canada writes: Hi "Old Folksinger from Canada" Why don't we take Chapters / Indigo to court as the back of the books clearly state the price in various currencies but not a word of location. Their argument will not hold . So its either false advertising or refusing to sell at the posted price, both are against the law.
  34. A Mahadeen from Toronto, Canada writes: If it's way cheaper in the US, I either get down there to buy it or not buy it at all.
  35. brm 2000 from HOGTOWN, Canada writes: The dollar is at par now. What would happen, and it could, if the dollar was worth more than the US by lets say 25 cents? It could happen. Start your shopping engines. I can see it now, bus tours to the US loaded with seniors for shopping.
  36. Dave P from Calgary, Canada writes: I agree with the earlier comment stating that we should keep buying in the states and force them to change the prices or go out of business, its the whole point of open market system.

    I dont think the gas price comparison works quite the same though, taxes play to much of a role in the price determination
  37. art in calgary from Canada writes: Honda Ridgeline manufactured in Alliston, Ontario

    $28,000 USD on Honda USA website

    $35,820 CDN on Honda.ca

    go figure..............
  38. Jimmy K from Toronto, Canada writes: G. Sam, you're blaming the wrong people. Gas prices are higher? Blame your government, it's higher because gas is taxed at like 100% in Canada. The actual raw price of gasoline is no where near the pump price.

    Tim Bee, people who buy goods from the US STILL have to pay GST/PST/TAX/TAX/TAX on ALL goods they import, unless of course they can hide that new Toyota Camry in their suitcase on the way on. The only people that don't get money is the dealers and Toyota Canada, who seems to be making outrageous margins off of us canuckistanians.
  39. Confucious Smith from Canada writes: Dave P writes: "...we should keep buying in the states and force them to change the prices or go out of business, its the whole point of open market system..."

    I agree.

    But I do wonder why (in a level playing field), although we claim to have world class manufacturing, our manufacturers are not able to compete in without some kind of subsidy. Our manufacturing jobs are generally well-paid - are these labour costs pricing us out of that ability to compete in an open market system?
  40. E W from Canada writes: John Arthur from Canada writes: Purchasing these items from our American cousins is short-term Leftist thinking.

    You are shopping away yours, and your children's futures and costing Canadian jobs.

    You selfish idiots.

    Think with your heads and not your wallets! Or move to the US if you think it's so great.

    no no, they are the selfish idiots because they are making an extra 20-30% profit by selling things this way. And i dont see how this is leftist in any way, arbitrage is the oldest trick in the book and part of a market economy...which i believe conservatives and libertarians(like myself) fully support.
  41. Willard Kurtz from Toronto, Canada writes: Retailers and distributors can talk until they're blue in the face about time lags and Canadian only rebates...blah blah blah. Consumers will compare the price, factor in all of the tax and rebate variables and if X is appreciably less than Y and there are few barriers to access the market where X is sold, they will buy X. Technology in the form of on-line shopping has effectively obliterated the geographic barrier - the market price is what it is regardless of what was paid for the item 9 months ago. If you sell it for $100 and your competitor sells it for $70 then you will either adjust to the new market price or sell it for cents on the dollar at your soon to be coming store liquidation sale. The only retailer not in denial was the one from Winnipeg, he gets it - past is prologue, the present is reality and the future outlook is grim unless you react quickly. For any doubters, I offer the major record labels and CD retailers whose denial still has them hanging on to the pipe dream of a return of the good ole days. By the way, anyone plugging the "be a good Canadian and get gouged" mantra - please keep supporting televangelists and sending money to that guy in Nigeria who's got ten million dollars he wants to share with you...hope that works out for you...
  42. Dennis Petruk from Canada writes: Just the Canadian distributors and manufacturers giving the finger to the Canadian consumers.
    And then they have the gall to complain about decreased margins and job losses because of the high dollar.
    Gotta be a Liberal to be that hypocritical.
  43. Tom Erdman from United States writes: Mason Storm from Toronto, Canada writes: It's time the arrogant Americans got a taste of their own medicine!

    And what would that be?
  44. Another Point of View from Calgary, Canada writes: I think every Canadian should buy all their products from now on in the US. That way, no businesses will survive in Canada which means nobody will have a job. With no jobs and no businesses the government will collect no taxes and we will have no healthcare and no schools. At that point we will have no currency to worry about at all. Canadians so typically think of how much better it is elsewhere when it is so obvious it doesn't get better than what we have.

    And by the way...if you think the above scenario is so obviously crazy...its no more so than the expectation that products will reprice overnight.

    Just a thought
  45. Tom Erdman from United States writes: One reason Canadian prices are higher has to do with economies of scale. Canada is a small market with special requirements (printing everything in French and English). If a manufacturer has to change it's production to produce a small run with special requirements, naturally they will have to charge more because it costs them more to make it. Canadians have to get over this ridiculous idea that Americans spend every waking moment thinking up ways to screw Canada. Believe me, the vast majority of Americans, including manufacturers, don't think about Canada all that often. Huge markets with hundreds of millions of people like Europe and Asia are important and get the deals. Small markets like Canada don't. That's life in the real world.
  46. N J from Canada writes: The difference is much more than what is reported here. For e.g. at Amazon.com website, I was looking at a book priced at $ 177. The same book was priced $ 241 at Amazon.ca wbsite.

    I bought cotact lens at $ 17 online compared to $ 30 at Costco.
  47. Apu Nahasapeemapetilon from Vancouver, Canada writes: Hello,

    Here's a couple of more examples:

    - MASH TV series box set: $170 (amazon.com); $280 (amazon.ca)
    - 6 pack of Molson Cdn: $5.49 in US; $9.95 in BC

    What bugs me the most are Canadian products that are cheaper in the US than Canada.
  48. Dave Herzog from United States writes: Are you the same people who whine and complain about the evil US corporation Wal-Mart? And you are worried about paying a few more bucks for something?
  49. MIT From SW ONT from Canada writes: The cost of retailing in Canada is higher than in the US which has a lot to do with how we make our decisions to shop.
    Walmart makes more money on a per store basis in the US than in Canada even with the lower prices.
    We like our flyers for comparison shopping - The US relys on TV ads and perception of savings. Their stores are developed to provide a shopping experience or a cachet to the consumers purchase.
    They also have more competition and consumers have more choice.
    Target in the States does an effective job and a profitable one also duking it out with Walmart in the US - Who is Walmart's competition in Canada? Zellers? - I don't think so.

    That being said - Canadian retailers must now deal with the elimination of the cheap dollar cushion. As must manufacturers and tourist destinations. The ris in the Dollar will put the weaker players out of business, drive efficiencies and better marketing amongst the survivors and we will weather the storm that will hit the US when the bulk of the US Boomers start drawing off their federal government.

    Keep an eye out for a US version of the GST coming to a southern border near you.
  50. N I from Canada writes: Okay sorry to have to point this out but the Harry Potter book is not 24% higher in Canada it is actually sitting at 15%. Which makes perfect sense for the date it was published. At the moment most books published after about July/August are at 15%. Once you factor in that Amazon.ca and Indigo.ca online discount at 34% then the difference between buying in the US and Canada disappears. Remember when you order from the US you will pay a shipping, custom fees and some taxes. Pretty much erasing the savings!
  51. MIT From SW ONT from Canada writes: A good example of the costs of the retail model in Canada can be found comparing the price you pay for an item found at Dollarama versus Walmart.
    A bag of Munchoes - 1.49 Walmart same package/Manufacturer
    A pocket radio - 3.98 Walmart same package/Manufacturer
    4 cheap AA batteries - 1.98 Walmart
    Paint Brush - 2.98 Walmart
    Bag of Sugar - 1.79 Walmart
    Halloween decorations - up to 7.98 at Walmart
    Pens, candy, office supplies, gloves, tools- Up to 4.98 Walmart

    Dollarama does not advertise, accept VISA/MC,produce glossy flyers,some do accept debit cards. They do not have huge parking lots, no greeters or shopping cart chasers. They buy smart, get it on the shelves quickly, and keep their shelves full.

    Walmart and others have tried to put inhouse dollar sections in place but these areas canibalize sales from other departments.

    Walmart knows that it is the perception of low prices that people spend their dollars on. They target the shoppers that do not know the difference.
  52. Vote NDP in the next federal/provincial election from Toronto, Canada writes: Canadians have every right to expect savings especially with American goods sold in canada. If the retailers don't drop their prices with no excuses within 6 months then we need to pass a law under the Competition Act (law that protects consumers) to initiate an immediate price cut so that way Canadian consumers will benefit just like American consumers.

    I'm just standing up for the average consumer and working family and not for political reasons.
  53. Another Point of View from Calgary, Canada writes: Tom Erdman from United States writes: "Huge markets with hundreds of millions of people like Europe and Asia are important and get the deals. Small markets like Canada don't. That's life in the real world."

    I see your point Tom...the only problem with it with respect to Canada and the US is that you export more to Canada (#1) than you do the your #2 (Mexico) and #3 (Japan) - COMBINED. You also export twice as much to Canada as you do to all of Europe and 50% more to Canada than China, Japan, Taiwan and Korea - COMBINED.

    All based on 2005 data:

    http://internationaltrade.suite101.com/article.cfm/america_stradebuddies
  54. Jasper the Black Lab from Vancouver, Canada writes: The "inventory lag" argument from retailers is complete B.S.

    Over a 5 year span from early 2002 to early 2007 the exchange rate climbed almost monotonously from 62 cents to 90 cents and there was nary a penny in price adjustments. Would you have me believe I am buying books, shirts, and computers that were manufactured 5 years ago?
  55. Gardiner Westbound from Canada writes: . Weak Canadian price fixing and collusion laws and lax enforcement allow manufacturers and importers to maintain pricing regimes not reflective of the Canadian dollar's near-par value. The permanent solution is to demand relief from your local freeloading federal politician. .
  56. G L from Canada writes: I have no sympathy for book sellers that say their costs are unchanged... that the books on the shelves now were forwarded pursuant to distributor prices from a few months ago. A few months ago, those same book sellers were saying that the disparity would be 'fixed' in the fall. Now it's the fall, and they're saying it will be 'fixed' for 2008. I don't buy it anymore... literally. I used to spend hundreds per months on books - from both large bookstores and independants. Now I go to the library. If I absolutely love a book and want to own a copy, I order it from the States. Last month, Chapters Indigo sent me an automated email (I'm sure some of you may have received it as well) asking why I hadn't purchased anything from them in a while... funny thing is, there was a "do-not-reply-to-this-email" line on it. Maybe they don't really care... but I think it's because they already know why. Why would anybody pay more for something they can get for less. Even with the discounts offered, the difference is not lessened as American retailers offer the same discounts.
  57. Gary Dare from Portland, Oregon, Canada, writes: Lawrence Hutchinson from Houston writes, "The savings Americans make on buying autos and other big-ticket items we turn around and spend on medical care." US medical premiums have gone up by 6.2%, and it's not the only item outside the CPI's basket of goods that is driving most folks' personal inflation into the 5-10% range. Overall, medical costs and housing costs (mortgage, rent, especially property taxes) are factors that tip Americans into a negative savings rate on average, for the past year, despite the lower overall consumer prices. Canadians have only a couple of odd months in that state.

    Consumer prices also very regionally and to get the border deals listed in Bellingham, WA or Minnesota and Wisconsin, I have to drive north from Portland, Oregon or Chicago ... they're not available locally.
  58. shirley chan from Richmond Hill, Canada writes: I recently bought a pair of new aftermarket tail light for my Honda from ebay for US$49.00 $50 shipping/handling. The similar item from a Markham , Ont retailer charged CAD.175.00.
    Wow.
    Buy online from US whatever it's available.
  59. Amit Kumar from Canada writes: check out

    http://www.volvocars.us/ S80 model @ 38K
    vs.
    http://www.volvocanada.com/ S80 model @ 55K

    17K difference.... WTF???????

    Im buying my car in New Jersey
  60. Christopher Kiely from Canada writes: Canadian businesses will respond or they will lose business to retailers in the US, at this point with the dollar as high as it is, it really is that simple. Adjust or face the consequences. If you live anywhere near the border it would be foolish to buy a car in this country right now.
  61. Gary Dare from Portland, Oregon, Canada, writes: MIT writes, "The cost of retailing in Canada is higher than in the US which has a lot to do with how we make our decisions to shop.
    Walmart makes more money on a per store basis in the US than in Canada even with the lower prices." There are three other structural reasons ...

    a) lower minimum wages, fewer hours ... many Wal-Mart staff are only given enough to remain qualified for public assistance including health care (e.g., Medicaid). Their HR offices usually provide government forms.

    b) In many states, Wal-Mart is in litigation for making staff work off the clock (i.e., unpaid).

    c) Wal-Mart uses maintenance contractors who have illegal immigrant staff with false papers working for the legal minimum plus few or no benefits. When the contractors are caught, they are "shocked! just shocked!!" at the revelation and move on to the next contractor.

    It is estimated that 5% of the US workforce is here illegally.
  62. David Stanley from mtl, Canada writes: Apple 80 GB Canada U.S.
    iPod Classic - (bestbuy.ca) (bestbuy.com)
    Silver $279.99 $249.99 should be 30$ made of cheap plastic and in china

    Harry Potter Canada U.S.
    And the (amazon.ca) (amazon.com
    Deathly Hallows $22.50 $19.24 no reason this is above 12$

    Lululemon Canada U.S.
    Yoga Relaxed Fit (Vancouver) (Bellevue, Wash.)
    Cropped Pants $79.00 $69.00 made in china should be 12.99

    Starbucks Canada U.S.
    Grande Brewed (Toronto) (Buffalo)
    Coffee $2.00 $2.01 should be 80 cents

    Gas price for Canada U.S.
    Regular unleaded - (Vancouver) (Seattle)
    On Sept. 18 105.5cents/litre 76.4 cents/litre

    2007 Canada U.S.
    Impala SS (gmcanada.com) (autos.yahoo.com)
    MSRP $35,560 $28,040 not worth more than 20,000$
  63. Tom Erdman from United States writes: Another Point of View from Calgary, Canada writes: Tom Erdman from United States writes: "Huge markets with hundreds of millions of people like Europe and Asia are important and get the deals. Small markets like Canada don't. That's life in the real world." I see your point Tom...the only problem with it with respect to Canada and the US is that you export more to Canada (#1) than you do the your #2 (Mexico) and #3 (Japan) - COMBINED. You also export twice as much to Canada as you do to all of Europe and 50% more to Canada than China, Japan, Taiwan and Korea - COMBINED. All based on 2005 data: As you pointed out your data is from 2005, almost 3 years old. A lot has happened in those 3 years. Within the past month China has past Canada as the US's #1 trading partner, and within the next 2 or 3 years so will Mexico. As trade with Canada diminishes in importance and volume, so will American companies willingness to manufacture for what is basically a niche market without getting even more of a premium. I think with the loony at par and every democratic presidential candidate coming out against NAFTA it would be a good time for Canadian businesses to try and find other markets. Doing business with the US is going to get a lot tougher and expensive for Canada after the 2008 presidential election when NAFTA gets scrapped.
  64. David Stanley from mtl, Canada writes: on big ticket items like vehicles it makes no sense at all
    a truck manufactured in Canada selling for less in AMerica
    this is hogwash
    they are fleecing Canadians royaly
    Canadians ought to start boycotts
    organise a few of them and I bet you see some action take place
    as long as only lip service is the only response from Canadians nothing will get done
    but start to affect their bottomline and watch them jump
    soon they will be making thos vehicles in china and then they will try to sell them to us at the same prices
    we need a revolution here in Canada a boycott revolution
  65. Gary Dare from Portland, Oregon, Canada, writes: David Stanley, boycotts are about the only way to go about and the stores will respond, once prices in the US start going up faster.
  66. Not the Alliance from Canada writes: David Stanley - I agree, it makes no sense. Would be nice to know who is making the windfall excess - the dealers or the manufacturers. What really takes the cake is how some manufacturers are refusing to do warranty work on cross border cars. So you could buy a made in Canada car in the U.S., import it legally, but would have to take it back to the States if any warranty work was required. There's absolutely no reason for this, other than price protection/gouging. If the Canadian dealers offered something - options, free service etc to make up some of the difference, that would mean something - but they don't.

    So I agree that either a boycott or a buy in the U.S. campaign is what's needed. I am in the market for a new car this year but will not be buying from a Cdn dealer at these ridiculous spreads.
  67. Barbara Francoeur from Toronto, Canada writes: Book prices are fixed by mutual agreement (between USA, Canada and the UK) and for a fixed period. These agreements are not nullified just because the relative values of the three currencies vary over the term of the agreement.

    Canadians should know that a contract is a contract is a contract. Canada and the Canadian dollar are NOT exempt from the rules governing international agreements. Whining and complaining about this makes the posters look and sound like ill-informed hicks.

    Book prices and other prices fixed by international trade agreements will be adjusted downwards when the specifics of the agreements come up for review at the end of the current term of applicability of signed agreements.

    This would not be rocket science for most other national populations to understand. I cannot understand why canadians seem to feel the rules should not apply to Canada and Canadians.
  68. Chico Tanto from Toronto, Canada writes: In addition to the sometimes ridiculously large price gap (US stuff seems to be cheaper almost most of the time and items), there is the huge selection of products and stores in the US that is lacking here. I started to buy iPod (shuffle and Nano) 2, 3 years ago in the US with exchange rate then and came out with the products AND accessories cheaper than buying here...
  69. D K from Canada writes: "Vote NDP in the next federal/provincial election from Toronto, Canada writes: Canadians have every right to expect savings especially with American goods sold in canada. If the retailers don't drop their prices with no excuses within 6 months then we need to pass a law under the Competition Act (law that protects consumers) to initiate an immediate price cut so that way Canadian consumers will benefit just like American consumers."

    Really? Does this mean Canada will start collecting the same amount of taxes as in the US? If the exact same business is taxed more in Canada then the US, of course they will charge more for their products. Health care ain't free.
  70. Another Point of View from Calgary, Canada writes: Tom Erdman from United States writes: "Within the past month China has past Canada as the US's #1 trading partner, and within the next 2 or 3 years so will Mexico. As trade with Canada diminishes in importance and volume, so will American companies willingness to manufacture for what is basically a niche market..."

    Tom: Your country's own records for YTD July 2007 show the following (imports plus exports http://www.census.gov/foreign-trade/top/dst/current/balance.html)

    Canada $320 Billion
    China $211 Billion
    Mexico $121 Billion

    I would say Mexico and China have a way to go. It is unfortunate that so many Americans are unaware of stats such as the above. We are by far your largest OVERALL trading partner...you only buy more from the Chinese...they buy little from the US.

    Do you realize that the US receives 20% (and growing) of its petroleum imports from Canada? Would you rather get them from Sudan or Iran?

    Tom: I have one question for you...based on the above numbers do you think the Canadian market is not important to the US.
  71. Let me tell You How It Is from United States writes: The difference in prices is because someone has to pay for Canada's "free" "envy of the world" Health Care system.
  72. Another Point of View from Calgary, Canada writes: Let me tell You How It Is from United States writes: The difference in prices is because someone has to pay for Canada's "free" "envy of the world" Health Care system.

    Good one....but you still don't provide medical coverage to millions of US citizens yet your system is even more costly per capita than Canada's.
  73. Gary Dare from Portland, Oregon, Canada, writes: D K writes, "Does this mean Canada will start collecting the same amount of taxes as in the US? If the exact same business is taxed more in Canada then the US, of course they will charge more for their products." It's not necessarily taxes, which is probably par for most businesses (there is a business tax thread elsewhere). Labour will be costlier in Canada, with higher minimum wages and a 99.999% legal workforce. (It is estimated by the US government that up to 5% of the US workforce is in that country illegally.)

    Still, a 10-15% premium on sticker price with PST and GST offsetting shipping or travel costs is probably enough to attract people to shop in Canada, and leave most cross-border shopping in conjunction with vacations and/or business trips. Since prices might break out in the US soon, convergence will probably mean that we'll never see some of the quoted prices in Canada.
  74. Let me tell You How It Is from United States writes: Thanks "another point of view" but that's why prices are even cheaper in China, Thailand, Indonesia...............because those countries don't provide health care for their populations either.

    But while we're at it most European countries provide far superior health care and have better longevity rates than Canada does even at lower cost than Canada's bloated health care system.

    Just reinforcing that Canadians need to stop fixating being Obssessed with the US and look at the wider world view.
  75. Another Point of View from Calgary, Canada writes: Let me tell You How It Is from United States writes:
    "Just reinforcing that Canadians need to stop fixating being Obssessed with the US and look at the wider world view".

    This is really funny...an American telling a Canadian to "look at the wider world view". Most of your citizens couldn't even find China, Thailand or Indonesia on a map...but I'm sure most would think Thailand is a more important trading partner to the US.
  76. Michele K from Ottawa, Canada writes: Barbara Francoeur wrote: "Book prices are fixed by mutual agreement (between USA, Canada and the UK) and for a fixed period. These agreements are not nullified just because the relative values of the three currencies vary over the term of the agreement. Canadians should know that a contract is a contract is a contract. Canada and the Canadian dollar are NOT exempt from the rules governing international agreements. Whining and complaining about this makes the posters look and sound like ill-informed hicks." Barbara, unless I'm off my game, I would bet that those contracts that we 'ill-informed hicks' are not contracts between our respective sovereign countries as represented by our respective governments, but simply business contracts between Canadian/US/UK book agencies. And if that is the case, Barbara (and if it is not, I have to ask why my tax dollars are going toward negotiating on behalf of book sellers anyway), while you are certainly correct that contracts, whether public or private, domestic or international, are binding upon those who enter into them, I do believe that the only ones bound by the kind of contract you're referring to are the book sellers themselves. I mean, surely you're not suggesting that anyone other than our elected government representatives has the authority to bind all Canadians via their private business relations with others, are you? Tell me you're not part of that group that incorrectly thinks that by having formed some contractual 'international' arrangement between themselves and other book agents abroad - thus effectively making private law among themselves - that those 'laws' have application on us, the book-buying public? A contract is in that sense is indeed NOT a contract, is NOT a contract. I may well be one of those 'ill-informed hicks' re: the book industry, Barbara, but I do understand a little something about privity of contract. Perhaps you should do a little reading about that - maybe buy a book.
  77. Let me tell You How It Is from United States writes: Thanks "another point of view" but wrong again; China just last month took over Canada's "much coveted spot" as being the top trading partner of the US.
    And while we're at it the most important ally of the US is not Canada as Canadians like to think to themselves but if you're counting foreign aid or military involvement then Australia is America's number one ally as Australia has supported the US in all military interventions ranging from WWI, WWII, Korea, Vietnam, Iraq, Afghanistan in the last 100 years. Canada has just been automatically forced to get involved like with WW I and II or has been embarrassed to get involved as with Chretien and Afghanistan.
  78. Not the Alliance from Canada writes: Let me tell You How It Is from United States writes: "The difference in prices is because someone has to pay for Canada's "free" "envy of the world" Health Care system. "

    As you know, health care isn't cheap anywhere. Eg - GM's U.S. employee health care benefit costs are it's single largest expense item - even larger than steel. So your argument really makes no sense in the context of explaining higher Cdn $ prices for items that are manufactured in North America. If anything, the Cdn manufactured items should be cheaper since health care amounts to a gov't subsidy vs the U.S. situation.
  79. Another Point of View from Calgary, Canada writes: Let me tell You How It Is from United States writes: Thanks "another point of view" but wrong again; China just last month took over Canada's "much coveted spot" as being the top trading partner of the US.

    Ho hum...I will have to copy and paste what I wrote to another mis-informed American but an hour ago:

    Your country's own records for YTD July 2007 show the following (imports plus exports http://www.census.gov/foreign-trade/top/dst/current/balance.html)

    Canada $320 Billion
    China $211 Billion
    Mexico $121 Billion

    I would say Mexico and China have a way to go. It is unfortunate that so many Americans are unaware of stats such as the above. We are by far your largest OVERALL trading partner...you only buy more from the Chinese...they buy little from the US.

    Do you realize that the US receives 20% (and growing) of its petroleum imports from Canada? Would you rather get them from Sudan or Iran?

    I have one question for you...based on the above numbers do you think the Canadian market is not important to the US.
  80. Michele K from Ottawa, Canada writes: "And while we're at it the most important ally of the US is not Canada as Canadians like to think to themselves but if you're counting foreign aid or military involvement then Australia is America's number one ally as Australia has supported the US in all military interventions ranging from WWI, WWII, Korea, Vietnam, Iraq, Afghanistan in the last 100 years. Canada has just been automatically forced to get involved like with WW I and II or has been embarrassed to get involved as with Chretien and Afghanistan."

    May I be the first (?) among many to tell you, Let Me Tell You..., that Australia is certainly welcome to it!

    I'm no historian, but I would sure like to know how it is that Canada had to forced into WWII involvement, considering that we entered the war a full 2 years before you in the US did.
  81. Tom Erdman from United States writes: Another Point of View from Calgary, Canada writes:I would say Mexico and China have a way to go. It is unfortunate that so many Americans are unaware of stats such as the above. We are by far your largest OVERALL trading partner...you only buy more from the Chinese...they buy little from the US. Do you realize that the US receives 20% (and growing) of its petroleum imports from Canada? Would you rather get them from Sudan or Iran? Tom: I have one question for you...based on the above numbers do you think the Canadian market is not important to the US. You are our largest overall trading partner right now, but that wont last much longer. You state that China sells a lot but buys little from the US, well the same can be said for Canada. Isn't your trade surplus with us about 15 to 20 billion dollars a month? With it's huge population and exploding middle class the sales opportunities with China are limitless. Our chances of selling much more to Canada than we do now are pretty much zero (sorry, zed). It's a saturated market. In the long haul, that makes China much more important economically. As for oil imports, I don't care much for Iran but I have nothing against Sudan. Until close friends and allies like the UK or Australia start exporting oil I'd just as soon buy from Sudan as anyone else.
  82. Let me tell You How It Is from United States writes: Dear Michele K:

    If you have your Canadian history text from Grade 2 it should be on page 56: let me paraphrase: 1914 Canada being part of the British Empire was automatically involved in a war declared by Britain. 1939 Canada as a Dominion in the British Empire simultaneously declared war on Germany when it's master Britain did.
    Between 1939 and 1941 we were just biding our time building our military and profiteering off war. Canadians should know about war profiteering as well: Canada did it during the 1960's and Vietnam and right now during Iraq. Canada is busy making military equipment/ tanks/ weapons, jet engines for us and making money off it too.
  83. Michele K from Ottawa, Canada writes: Let Me Tell You, let's not get nasty. We were part of the British Empire and not a fully independent country, so being 'forced' into action, as you stated is hardly accurate and an inflamatory statement on your part.

    And wherever did anyone say that Canada has never engaged in profiteering or other unsavour practices? Stick to the subject, Let Me - your slams at Canada are hardly opaque. Your intent is to portray Canada as a wiennie, when we are clearly not.

    Don't you know the whole world sees all your military posturing for exactly what it is? Over-the-top actions by a fear-driven nation.
  84. Michele K from Ottawa, Canada writes: Fear-driven INSECURE nation.
  85. Another Point of View from Calgary, Canada writes: Tom Erdman from United States writes: As for oil imports, I don't care much for Iran but I have nothing against Sudan. Until close friends and allies like the UK or Australia start exporting oil I'd just as soon buy from Sudan as anyone else. Too bad the US government is banning oil imports from Sudan, Tom. Do you know why...they are one of Osama Bin Laden's best friends. As for not caring where you get all your oil from you would care in one heck of a hurry if we started selling it to your new friends the Chinese. As for your close allies the UK or Austalia selling you oil Tom THEY DONT HAVE ANY TO SELL. And as for the UK and Australia being your new friends (presumably because they invaded Iraq with you)...I thought you might like to know that in Afghanistan (where Bin Laden still hides in a cave)Canada has lost 70 soldiers and Australia has lost 1. Finally Tom...from your own "Department of State" website ( http://www.state.gov/r/pa/ei/bgn/2089.htm): "The relationship between the United States and Canada is probably the closest and most extensive in the world. It is reflected in the staggering volume of bilateral trade--the equivalent of $1.5 billion a day in goods--as well as in people-to-people contact. About 300,000 people cross the shared border every day."
  86. Let me tell You How It Is from United States writes: Dear " Another point of view" continues the egocentric attitude of Canadians and knows nothing about the UK and Austarlia. UK's North Sea oil industry has made the UK self-sufficient and an exporter of oil for the last 20years. Australia is exporting Natural Gas and Uranium from it's huge reserves as well for the last 20 years. Canadians just have this unbelievable egocentric arrogant view of themselves.
  87. Robert McEachern from some where under the rainbow, Canada writes: People seem to forget some basics.
    1: The Canadian market is smaller then that of California.
    2: Most products that come into North America go thru San Diego and we in Canada subsidize the american products. Free trade allows US shipping companies to give us the bill for all goods that go thru the US.
    3: US Energy analyst have been lying to the world about the US invading Iran and trade sanctions against Iran and the rebels in Nigeria have cut off the supply of oil.
    4: Since whyen did Canada make tanks. Not Since WWII. The Humvees that the US use and made by GM in the US ONLY.
  88. Let me tell You How It Is from United States writes: Dear Robert:

    Canadian tanks are the Stryker/LAVIII made by GM plant in London, Ont. All equipped with 20mm cannons/ 120mm guns and equip the US Army/Marine Stryker brigades which are quaility Canadian products currently busy killiing people in Iraq.
    I hope that you aren't one of the 92% of Canadians who don't know their head of state is the Queen
    • Posted 21/09/07 at 5:36 PM EST |