Retailers Score Senate Committee Report On Price Differential An A
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 recommendations.
"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 retailers.
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