By now, most Canadians have likely heard more about trade barriers and tariffs than they ever wanted to. Naturally, this has been focused on those that have been imposed by the United States and China which are hurting not only the Canadian economy but the global one as well. But long before these impediments to free trade were top headlines, there have been discussions and challenges on trade barriers being applied closer to home.
While Canadians have now learned a great deal about international tariffs, most were unlikely aware of the restrictions on trade that exist between provinces. Despite agreements such as the Canadian Free Trade Agreement and the New West Partnership, there have always been exceptions and carve outs that have resulted in trade barriers between provinces. In fact, estimates of the costs of these interprovincial trade barriers are in the hundreds of millions of dollars.
A recent study indicated that the removal of these trade barriers between provinces could result in a boost to Canada’s Gross Domestic Product by between 4.4% and 7.9%. Another showed that true free trade between provinces could grow the Canadian economy by up to $200 million and, just as importantly, lower prices by as much as 15%. All of this is particularly important now as Canada and other countries struggle with the imposition of tariffs by the United States and by China. It is important that everything within our nations control is done to strengthen the economy, lower prices and create jobs.
Interprovincial trade barriers can take many forms. They are often the result of different regulations between provinces. These can result in different labelling requirements or safety certifications. It can take the form of transportation regulations or different standards for professional accreditations for a variety of occupations. All of these place artificial and costly barriers for products and services within the same country.
But there now seems to be real momentum to bring down these barriers. Province’s such as Ontario, Nova Scotia, Prince Edward Island and British Columbia have all introduced legislation that would provide free trade between provinces. Last week in Manitoba, the Progressive Conservative Caucus also introduced legislation, the Free Trade and Mobility Within Canada Act, that would add Manitoba to the list of provinces ready to bring down barriers and boost our economy. Unfortunately, the NDP government signalled that they are not interested in seeing this bill pass in the Manitoba Legislature. While the NDP in Manitoba have often talked a good game on free trade, they have rarely supported measures that would actually facilitate it within Canada or beyond.
Some Manitobans may be wondering why it took a burgeoning trade war with the United States and China to bring provincial trade barriers to the forefront. In fact, for Manitoba, under the former Progressive Conservative government, this was a priority long before the recent trade disputes. As far back as 2017 Manitoba was lobbying other provinces for what then Premier Brian Pallister called a “grand bargain” based on reducing interprovincial trade barriers. To back this up, he eliminated many of the exemptions Manitoba then had under the Canada Free Trade Agreement and encouraged other provincial Premier’s to do the same.
It has taken several years and unforeseen circumstances to get other provinces to get fully onboard with bringing down provincial trade barriers. And now it seems it will take some convincing for Manitoba’s NDP to catch up with other provinces. But it is time that Canada takes some of its own trade and economic future into its own hands and brings down its own barriers to trade.
