<P> Another factor is Canada's Supply Management system for certain food items such as chicken and milk which ensures farmers are paid fairly but results in higher retail prices, </P> <P> When asked about "Country Pricing", members of the Retail Council of Canada were told by manufacturers that there are three main reasons for these discrepancies: 1) Canadians are used to paying more for products in Canada; 2) the higher prices charged to retailers in Canada subsidize the costs of maintaining suppliers offices and operations in Canada; and 3) the higher prices are necessary to compensate Canadian distributors which face higher costs in Canada . </P> <P> One area of particular concern for Canadians is the price of vehicles, even those built in Canada, which often cost thousands of dollars more . Even the "Freight and PDI" charge in Canada is usually twice as much for a Canadian living within view of the car factory, as it is for an American living in Hawaii, buying the same Canadian - built vehicle . In an effort to disguise the price difference, many manufacturers will have a similar price for their lowest - priced trim - level of a particular vehicle model, but that trim - level will have less content . For example, in 2015, the lowest price Honda Fit in Canada was C $16,126 (2015 - 08 = US $12,215), while the lowest in the US was US $15,790 (2015 - 08 = C $20,845). However, the Canadian trim - level was "DX" which did not include automatic transmission, air conditioning, cruise control or one - step electric windows . This trim - level was not available in the US . </P> <P> The Organization for Economic Cooperation and Development (OECD) tracks price comparisons for industrialized countries, and in June 2015 Canada was listed as 6% more expensive than the United States, when the US dollar was used as the reference currency . On a Purchasing Power Parity scale, where the income levels and costs are used to calculate the difference in the affordability of a similar basket of goods, Canada is rated as 26% more expensive than the US in 2014 . </P>

What type of economic system does the united states and canada have