Canada Minister: Shrink Price Gaps

Referring to the higher costs Canadians often pay for the same goods as their south-of-the-border counterparts, Flaherty acknowledged there are constraints to how much savings the consumers will see from the Canadian dollar's rapid rise against the American buck.

But he said it was important for retailers, wholesalers and distributors to adjust their prices to change as quickly as possible and for consumers to ensure that they do so by exerting their buying power.

"Canadians work hard to support themselves and their families. When they purchase goods, they deserve to pay a price that reflects the strength of the Canadian dollar," Flaherty said after meeting with Canadian retailers.

The Canadian dollar has recently been worth more than its American counterpart for the first time since the mid-1970s. It was worth more than $1.03 at the end of trading in Toronto on Tuesday.

"There should not be large discrepancies between similar products just because they're being sold on different sides of the border," Flaherty said.

He added that Canadians should realize there is "power to shopping around" and "if the market works, prices should go down."

Flaherty also said he hopes shoppers will "buy Canadian" as they prepare for the Christmas-New Years shopping season and urged them to spend their money in this country rather than crossing the border to the United States.

"We don't want our retail dollars spent south of the border. We want to keep our consumers here, supporting Canadian businesses, but we can only do that if our prices are competitive," he said.