Timing is important here.
You won the auction and were informed of that?
Then the seller opened an Unpaid Item Dispute?
He can only do that after 48 hours* and then you have 96 hours to pay.
Does this mean that you did not pay your winning bid (plus shipping as advertised in the listing) within 48 hours and did not pay during the 96 hours you had to respond to the Dispute?
If the Dispute is still open, you can pay the amount eBay billed you (ignoring any inflated invoice the seller sent later) and he is required to ship.
BUT.
That $7 shipping gives me pause.
It's too low for most parcel shipping within Canada ** and much lower than USPS rates to Canada.
Where is the seller? Canada ? USA? Overseas?
Go back and look at the listing.
Check the Shipping tab.
What shipping is given there for Canada? Does the seller even allow shipping to Canada? Many US sellers are freaked out by non-US buyers.
Also.
Is the Global Shipping Program involved in the shipping?
This is a Seller Protection program that charges you Canadian duty and sales taxes before the seller is told to ship.
It is hard to spot when phone bidding, but it is there.
*If he is in the USA, non-US sellers must wait 96 hours.
** And too high for untracked domestic LetterPost.