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Carney to testify about Canada-U.S. price differential at Senate committee

File photo of loonies and American dollars. THE CANADIAN PRESS/Paul Chiasson.

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

The Senate finance committee is investigating the price-gap now that the loonie is trading near parity with the greenback.

Two weeks ago, Finance Minister Jim Flaherty told a 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.

Before Carney talks on the prices issue tonight, he is scheduled to attend the Senate banking, trade and commerce committee to discuss the current state of the domestic and international financial system.