TORONTO, May 6, 2014 /CNW/ - Retail Council of Canada welcomes the
findings contained in the C.D. Howe Commentary "Sticker Shock: The
Causes of the Canada-US Price Differential."
"The Institute's findings echo what retailers in Canada have been
experiencing for years," said Diane J. Brisebois, President and CEO of
the Retail Council of Canada. "High tariffs and unjustified higher
prices charged by suppliers to retailers in Canada are both leading to
higher prices for Canadian consumers."
Brisebois indicated that expert studies, beginning with the 2013 report
from the Senate Standing Committee on National Finance (http://www.parl.gc.ca/Content/SEN/Committee/411/NFFN/DPK/01Feb13/home-e.htm), have consistently concluded that retailers in Canada are fighting an
uphill battle when it comes to competing with retailers south of the
border. She indicated that the government has begun to address this
issue through tariff cuts and a commitment to address price gouging at
the wholesale level and she called on the government to continue these
RCC offered up one caution in relation to C.D. Howe's suggestion to
increase personal exemptions on goods brought into the country.
"We believe this is premature," said Brisebois. "Until we level the
playing field for retailers in this country, another increase in
personal exemptions would turn border towns into ghost towns because
retailers are major direct and indirect contributors to the economic
livelihood of these communities."
"Retailers are in the business of competing but cannot do so with one
hand tied behind their back," continued Brisebois. "Similarly it would
be premature to change the de minimis rules on postal and courier shipments, indeed to do so now would
exacerbate, rather than reduce the price gap."
"When tariffs and wholesale prices are equal, or close to parity, we are
confident that our small and large brick-and-mortar, omni-channel and
on-line retailers will all provide Canadian consumers competitive
offerings and our customers will have no reason to shop south of the
Retail Council of Canada, founded in 1963, is a not-for-profit,
industry-funded association representing more than 45,000 store fronts
of all retail formats across Canada, including department, grocery,
specialty, discount, and independent stores, and online merchants. RCC
is the Voice of Retail in Canada. We speak for an industry that touches
the daily lives of Canadians in every corner of the country — by
providing jobs, career opportunities, and by investing in communities.
SOURCE: Retail Council of Canada
For further information:
Retail Council of Canada
416 467 3782