Why is the iPhone 5 more expensive in Canada?

On http://store.apple.com/...ly/iphone5 (the US website) the 16GB is $199 but on the Canadian website http://store.apple.com/...ly/iphone5 the 16GB is $699? What sense does that make? Is it really a 500 dollar difference when you buy it from the states? Why is it like that? Or am i just reading it wrong?

Maybe because apple is in the us. Or the taxes.