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Carney to address price difference between U.S. and Canada

OTTAWA - Bank of Canada governor Mark Carney is slated to appear tonightat a Senate committee tonight to discuss why prices are higher inCanada than the United States.

OTTAWA - Bank of Canada governor Mark Carney is slated to appear tonight at a Senate committee tonight to discuss why prices are higher in Canada than the United States.

The central bank head will testify before the Senate finance committee.

The committee is investigating the price-gap between stores in Canada and the U-S now the loonie is trading near parity with the greenback.

Earlier, Carney will discuss the current state of the domestic and international financial system before the Senate banking, trade and commerce committee.

The European debt crisis and the weakening U-S and Chinese economies have cut economic growth forecasts around the world.

Two weeks ago, Finance Minister Jim Flaherty told the Senate committee that Canadians have every right to be angry about paying more than Americans for the same goods.

Flaherty says he's prepared to look at reducing tariffs and to use “informal persuasive powers” if needed to bridge the gap.

The Retail Council of Canada calls tariffs a major factor in the persistent price gap, saying some duties are as high as 18 per cent.

That's because the free trade agreement does not cover all goods traded between Canada and the U-S.

Except for a recent dip, the Canadian dollar has traded near par or above par with the U.S. currency for most of this year.

 
 
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