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With United States tariffs looming, a majority of Canadians want to buy made-in-Canada products but lack clear definitions to help guide their purchases, according to a new survey by Atlantic-based firm Narrative Research.
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There have been plenty of anecdotal reports in recent weeks of Canadians seeking out locally made products, and the survey provides both evidence and a word of caution about the ongoing trend.
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The report said 63 per cent of Canadian residents are actively seeking Canadian products when shopping, and 53 per cent are looking at labels to avoid buying products made in the U.S.
Canadian grocery giant Loblaw Cos. Ltd. announced two weeks ago it would start adding labels on all products prepared in Canada as consumer behaviour shifted in anticipation of a trade war.
“They want help and guidance on how they can buy more Canadian products and we’re really trying to do everything we can to help them,” Loblaw chief executive Per Bank said during the company’s fourth-quarter earnings call on Feb. 20.
However, simply labelling products may not be enough for some consumers, as Narrative Research’s report suggests.
Unaided, 37 per cent of Canadians said they would prefer to buy a product labelled “Made in Canada,” while 23 per cent would choose one that says it is a “Product of Canada.” Four in ten would purchase either, according to the poll.
That means that, given the choice and without additional information, more residents would choose a product that said it was Made in Canada over one that is a Product of Canada, the report said.
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Those terms may seem similar, but their definitions are quite different. And once those differences were made clear, survey respondents’ opinions notably changed.
The survey said that 75 per cent of respondents claimed to understand the term Made in Canada, and 63 per cent, the term Product of Canada. Narrative Research pointed out that while most people feel they understand the difference between the two terms, that doesn’t appear to be the case.
In order for an item to be labelled a Product of Canada, the government mandates that at least 98 per cent of the total direct cost of producing it be Canadian, while products Made in Canada only require 51 per cent.
After seeing the definition, 66 per cent of respondents shifted their preference to items labelled Product of Canada, while only one in ten said they would prefer to buy something labelled Made in Canada.
“Results clearly show that residents are trying to opt for products that have a higher percentage of Canadian ingredients, materials and labour,” the report said.
The poll results were consistent across provinces, ages, gender, income and education levels, it said, showing a high degree of unity in Canadian residents wanting to support companies that are producing goods within our borders.
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The survey was conducted online between Feb. 12 and Feb. 14 and asked 1,232 Canadians, 18 years of age or older, about what they did “in the last few weeks.”
• Email: dpaglinawan@postmedia.com
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