There is some weird agreements with international postage. Canada signed a contract with China to deliver post packages from China to Canada for like $2. So for all the vendors in China, they can ship to Canada for super cheap.Good point. Canada Post is the cheapest shipping and also the cheapest brokerage fees. Try running a parcel in from the states with Fedex or Purolator. Without getting into all the union issues, CP would be missed by many if they just disappeared. $14 every time you needed to send a letter? Need that one-off small cheap item made in China, like a decal that is worth $15? Well, it takes 20 days to get it, but it comes over for $15, shipping all in. If you use whatever courier, that cost is now $50.
Of course, Canada Post's actual cost to make that delivery is like $20, so they lose $18 every time someone orders a cheap trinket direct from China.