Cogito asks: "Why are food prices considerably higher in Canada?" and my best response is: That's a good question.
Altho' the federal and provincial sales taxes (in effect VATs which together equal 15%), don't apply to supermarket food per se, they apply to everything, and I mean *every*thing, else. Consequently, manufacturers, service providers, etc. raise the cost of food items provided to the retail market in order to recover these taxes.
Secondly, according to 'informed sources', much of Canada's food supply must be imported, which raises costs.
Thirdly, "we're a small market, nationally, consequently economies of scale are not available", so say knowledgeable friends and colleagues.
Fourthly, there's a not-so-well-hidden food protectionism. A guy I know runs a tortillaria. I asked him why he has no Mexican cheeses. He said that Quebec has import duties on cheese so high that the prices to him would be at least double, and in many case triple, what the cheese would cost in the U.S. This sort of thing is found in all niches of the market, and has a devastating effect, as you might well imagine. If I go down to Plattsburgh NY and hit the grocery store, they'll allow me—or my Quebec buddy— to claim c. $50 of stuff before they make us pop the trunk to be inspected.
It's a closed market, a high-tax relatively socialized economy, and NAFTA doesn't really apply.
Other than that, I can't think of any other reasons...
But, tell you what, if you were to ask me where I'd rather be a frail elder person, US or Canadia? I'd choose Canadia quicker'n you could count. So, in the end, I guess it all evens out.
Geo
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*this* will do the trick!
