Removing Interprovincial Trade Barriers More Important Than Ever

Removing Interprovincial Trade Barriers More Important Than Ever

As a potential trade war unfolds between Canada and the United States and with a federal election looming in the near future, Canada must turn its attention inwards and focus on strengthening internal trade between provinces. This sentiment has been increasingly popular in the recent months, garnering support from all 4 major political parties in Ontario and the Ontario Chamber of Commerce and Canadian Chamber of Commerce. Statistics Canada has estimated that by removing barriers to internal trade, Canada’s GDP per capita could see a boost of 3.8%. The Canadian Chamber of Commerce has suggested that this would bolster government revenue by over $15 billion. This would represent a massive boost to an uneasy economic landscape.

Currently, these barriers mostly take the form of differing regulations across provinces. This could be anything from meat and dairy standards to trucking and transportation licensing. When these standards differ across provinces, they become barriers to interprovincial trade and cost Canadians money. If someone earns their law degree in Alberta and they want to practice in Ontario, they would require a different licence which would cost them more money. The balance that must be struck in removing these barriers is keeping Canadians safe while also allowing people and goods to move through the country without significant or unnecessary barriers.

Efforts have been made in the past to remove some of these barriers but the need for change is greater than ever before with the risks caused by a global trade war. Agreements such as the Canadian Free Trade Agreement are already in place but should be amended to allow for an easier flow of trade between provinces. This can be done by removing protectionist exceptions to free trade that are within the agreement allowing for a more efficient and effective national economy.