May 6, 2014
Consumers should blame government policy, not retail price gouging for large Canada-US price gaps, according to a new C.D. Howe Institute report. In “Sticker Shock: The Causes of the Canada-US Price Differential,” author Nicholas Li finds that rising wholesale price gaps over the 2004-2007 period reflect ill-advised Canadian government regulations, such as high tariffs as well as supply management.