A bold statement, but it’s true. The thought came to me after ordering a product from Ebay that was to be delivered from China with “FREE SHIPPING.” How is it possible, I wondered, for a company to produce a product and absorb the cost of shipping it all the way fro China to Canada and still make a profit. The answer is that they really weren’t absorbing the cost of shipping — they had an “edge” that our manufacturers did not.
The way international mail delivery works is that the domestic post office charges what it charges to mail goods and the receiving jurisdiction simply delivers them without payment as the cost/hassle of an accounting would be prohibitive and stifle international communication and trade. What that means is that the cost for a Canadian or American to mail a package to China can be hundred times more than the cost of mailing that same package back along the same route, but this time from China to Canada and the U.S. In short, our Post Offices and the international understandings on mail delivery are undermining our manufacturing base by subsidizing foreign competitors who can ship products from China for less than it would cost a Canadian or American manufacturer to ship the same product within their own country.
You would think this would be an Election issue, but I’m still waiting for delivery on that.