TORONTO, Feb. 6, 2013 /CNW/ - Retail Council of Canada (RCC) has awarded
an A to the report of the Senate Committee on National Finance
examining the price differences between Canada and the U.S., noting
that it reflect retailers' cost pressures and offers some good
"We thank the Senators involved in this report for their hard work,"
said Diane J. Brisebois, President and CEO, RCC. "Minister Flaherty
mandated the Senate Committee to explore the root causes behind
differences in price between Canada and U.S. The Committee's findings
illustrate that without change, Canadian retailers will continue to
operate at a cost disadvantage."
RCC's report card marks the report on two categories that have
significant influence on pricing.
Tariffs - The government's decision in the last budget to increase duty
exemptions for cross border shopping has had a very negative impact on
Canada's retailers, particularly those in border communities. RCC
recommended that the Committee urge the government to expedite its
review of the tariff system in Canada in order to minimize the impact
of the exemption limit changes.
SCORE: A. The Committee has recommended the government review tariffs,
with "the objective of reducing the price discrepancies for certain
products between Canada and the United States".
Country Pricing - Country pricing is practiced by some suppliers who sell identical
goods to Canadian retailers at a cost that is highly inflated over what
American retailers pay. RCC asked that the Committee set the record
straight about the real cause of price differences in Canada.
SCORE: A. The Committee has clearly acknowledged the reality and
negative impact of the practice of country pricing on Canadian
RCC appreciates that the Senate addressed a continued need to harmonize
regulations with the U.S. RCC is also very pleased that the Senate
Committee specifically addressed the needs of Canadian booksellers, by
recommending that the Minister of Canadian
Heritage consider reducing the 10 per cent mark-up that distributors can
add to the U.S. list price of American books imported into Canada.
"We are happy with the progress made by the Senate Committee in
addressing changes needed to help retailers and consumers," said
Brisebois. "The government must now act in its upcoming budget to
implement many of the recommendations of this report and be a part of
the solution. Retailers continue to do their job in delivering value to
consumers. It is now time for our government to assist in leveling the
playing field for our businesses in Canada."
Retail Council of Canada (www.retailcouncil.org) is the Voice of Retail. Founded in 1963, RCC is a not-for-profit
association which represents more than 45,000 stores of all retail
formats, including department, grocery, independent merchants, regional
and national specialty chains, and online merchants.
SOURCE: Retail Council of Canada
For further information:
VP Communications, RCC
416 922-0553 ext. 228
416 574-2552 (Mobile)