Thursday, April 04, 2013

Free Trade Myth

Canadians continue to be at a disadvantage when shopping for goods in Canada instead of buying them in the United States. Why would one item that sells in a Bed, Bath & Beyond store in Canada be 30% more than the exact same item in the same store in the United States? When I asked the Canadian store manager to explain this wide discrepancy I was informed that the import tariffs were such that they could not match the price in the U.S. Whether that explanation is factual or some form of fabricated excuse is unknown.

On another item, this time a bottle of wine, the Canadian (Ontario) LCBO price is doubled that in the United States. In this instance, the wine is made in California and not another country. I thought free trade was supposed to level market prices to create a balance for consumers on both sides of the border. While I don’t mind paying a small percentage more to support local merchants, 30% and 50% variances are excessive and unreasonable. It is no wonder that consumers continue to conduct their shopping in the U.S.  They should drop the word “free” from the various publications that promote trade between Canada and the United States.

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