The 2017 Canadian Free Trade Agreement, which aimed to eliminate interprovincial trade barriers, remains stalled, with all provinces and territories having declared some exceptions to the agreement. However, some provinces are far ahead of others in addressing those barriers, according to a new report.
Gabriel Giguère, a public policy analyst with MEI, told the Epoch Times that Alberta saw the advantages of reducing trade barriers early on.
“The thing is, in 2017 Alberta was willing to move on these barriers politically,” said Mr. Giguère.
The stated aim of the Canadian Free Trade Agreement was to introduce key advancements to Canada’s internal trade framework that “enhance the flow of goods and services, investment and labour mobility, eliminates technical barriers to trade, greatly expands procurement coverage, and promotes regulatory cooperation within Canada.”
“We see that the political willingness to drop trade barriers is not there in Quebec and New Brunswick, while western Canada has been much more willing to follow the 2017 agreement, making changes almost immediately,” said Mr. Giguère.
He added that removing trade barriers has become increasingly important to consumers, as the barriers contribute to higher prices for many goods and services. He cited alcohol purchases in Canada as a typical example.
“If I as a Quebecer want to order a nice wine from a B.C. winery in Kelowna, then why can’t I just go to their website and order it? Instead, it has to go through the Quebec liquor authority,” said Mr. Giguère.
“The provinces appear unwilling to give up their liquor monopolies, and want to control how much individual Canadians can order and transport.”
The trade barriers go far beyond alcohol, affecting many industries in Canada and impacting prices as well as productivity. For example, forestry in Quebec requires that all wood harvested on government land be manufactured in Quebec, said Mr. Giguère. Construction is also highly regulated in Quebec, in part because of provincial trade.
But he said that some of Quebec’s trade barriers border on the ridiculous.
“To be involved in horse racing in Quebec, any out-of-province horses must reside in Quebec for at least six months before being allowed to race,” he said.
Mr. Giguère expects that public awareness will persuade provincial governments to move forward on interprovincial free trade.
“Not enough has been done since 2017, despite all provinces and territories signing the agreement. The public needs to understand the impact these trade barriers are having on prices and on the economy,” he said.
The MEI report recommends that provincial and territorial governments adopt a more “focused” approach to liberalizing internal trade and unifying the Canadian market through mutual recognition agreements.
“But to be successful, these agreements need to have sustained political leadership and oversight,” said the report.
