Ottawa's budget promises to close the price gap between Canadian and U.S. retailers.
The Harper government wants to address what it calls price discrimination - when higher prices exist at stores for reasons other than higher operating costs.
“The government will introduce the legislation to implement the measures in the budget,” said Federal Finance Minister Jim Flaherty.
A Winnipeg economist said transportation costs, higher wages and better safety standards tend to drive prices up north of the border.
He also said a belief exists that some businesses simply charge more to make more money.
“It's basically more profit taking among Canadian retailers,” said University of Winnipeg economist, Phil Cyrenne. “That's one hypothesis.”
Flaherty did not reveal details on how the government plans to tackle the price disparity.
