Its one of those 'what the market will bear' type things, Junkman.
Believe it or not, new guns are usually much cheaper in the snowy north than in the US. I mean, given our gun control and all how weird is that?
Cars are usually cheaper up here too. So much so that Canadian dealers were doing a great business selling into the US, but the car makers all of a sudden like came up with no-reexport rules, voiding warranties, etc..
I believe that it boils down to what the expected buyer's after tax take home pay is. My understanding is that it is correspondingly significantly higher in the US than here, so if you want to sell us certain things you gotta lower your prices.
Now, drug costs are a different story. I know there are all kinds of stories about how the government here somehow keeps 'em low, but I doubt our government has that level of skill.
US drug costs are the highest in the world, probably because they can get away with it.
With respect to tractors, when the C $ was real low, almost all used heavy construction equipment here was bought for rexeport to the US. It took a long time for me to find my Case 580C because of that, and, so I was told, the dealer I sold it to sold it to a rexporter the next day.