In December 2014, federal, provincial and
territorial governments began negotiations to strengthen and modernize the
Agreement on Internal Trade – which last year (July 1st, 2017) resulted
in the Canadian Free Trade Agreement (CFTA). This agreement covers most of the
service economy, which accounts for 70 per cent of Canada’s GDP.
It also committed provincial governments to a
comprehensive set of rules … ones which applied to almost all areas of economic
activity in Canada, and exceptions were clearly identified. The changes were also looked upon as
opportunity to enhance innovation in the sharing economy, and clean
technologies … all designed to promote Canada’s long-term economic development.
In
advance of tomorrows gathering of Premiers, and the federal government led by
Justin Trudeau, things seem a little fragile.
Manitoba
Premier Brian Pallister is urging the federal Liberal government, of Justin
Trudeau, to take concrete steps to end internal trade barriers and restrictions
within its own control.
“Internal trade barriers are a pocket book issue for every Canadian. They cost approximately $1,500 per family every year. These barriers need to end and they need to end quickly,” said Pallister. “Canada is an economic union and free trade is critical to our prosperity. But markets and investors need certainty.”
Premiers of all provinces and territories have already prioritized meaningful work on trade barrier reduction in provincial areas such as alcohol, occupational health and safety, transportation and business registration. This work is being led by Manitoba and Nova Scotia, and progress is being made. Manitoba currently has no personal use limits for alcohol crossing its boundaries and recently became the first province to adopt a new national standard for occupational health and safety equipment.
“Internal trade barriers are a pocket book issue for every Canadian. They cost approximately $1,500 per family every year. These barriers need to end and they need to end quickly,” said Pallister. “Canada is an economic union and free trade is critical to our prosperity. But markets and investors need certainty.”
Premiers of all provinces and territories have already prioritized meaningful work on trade barrier reduction in provincial areas such as alcohol, occupational health and safety, transportation and business registration. This work is being led by Manitoba and Nova Scotia, and progress is being made. Manitoba currently has no personal use limits for alcohol crossing its boundaries and recently became the first province to adopt a new national standard for occupational health and safety equipment.
Checking
with David Eby’s Ministry of the Attorney General, specifically around the area
of BC manufactured wines and spirits which seems to crop up regularly as an
area of concern, I was told:
The Liquor Distribution Branch (LDB) does not classify non-B.C. products by the province of origin. For example, beer brewed in other provinces is classified as “Domestic – Other Province Beer.”
Furthermore,
the spokesperson for the BC AG’s Ministry stated:
“All manufacturers that wish to sell product in B.C. must have it registered with the Liquor Distribution Branch (LDB). Once a product is registered, it is available for purchase via wholesale by individual Licensee Retail Stores (private liquor stores) or government BC Liquor Stores.”
“All manufacturers that wish to sell product in B.C. must have it registered with the Liquor Distribution Branch (LDB). Once a product is registered, it is available for purchase via wholesale by individual Licensee Retail Stores (private liquor stores) or government BC Liquor Stores.”
Meantime
next door in Alberta, Rachael Notley’s NDP government is launching a trade
challenge against Ontario over unfair liquor policies that prevent Alberta
manufacturers from accessing the Ontario market. Apparently, Alberta
lists 3,700 products from other parts of Canada … including 745 from Ontario.
By contrast, according to the Alberta government, Ontario imports only about 20
Alberta products despite their market being three times as large.
According to Deron
Bilous, Minister of Economic Development & Trade:
“It doesn’t
make any sense that it’s easier to sell Alberta beer in Tokyo than it is in
Toronto. It’s unacceptable.”
Bilous continued, “We’re fighting for the Alberta craft liquor manufacturers who create good jobs here in our province. They deserve a level playing field to sell their products across the country, without unfair trade barriers. We need more trade, not less.”
Bilous continued, “We’re fighting for the Alberta craft liquor manufacturers who create good jobs here in our province. They deserve a level playing field to sell their products across the country, without unfair trade barriers. We need more trade, not less.”
Back
home in BC, I was reminded of the recent spate between BC and Alberta, and
asked for comment:
“There was a
dispute between BC and Alberta, which was launched on February 6th, when
Alberta Premier Rachel Notley announced her government was boycotting all
imports of BC wines”, a spokesperson stated.
BC launched a formal complaint against Alberta on
February 19 of this year, because the government believed Alberta’s action
violated numerous provisions of the Canadian Free Trade Agreement.
“Alberta
suspended its boycott against provincial wines on the 22nd of
February, and we continue to monitor the situation”.
That said, the BC Craft Brewers guild has expressed
concerns about changes in 2016 made by Alberta, related to tax levels on out of
province craft beer manufacturers. Ken
Beattie, Executive Director of the BC Craft Brewers Guild informed me that previous
to the changes small BC craft brewers
paid a 10-cent mark-up. That changed to
$1.25 for all product being sold in Alberta, regardless of where is was brewed …
this, to stimulate the growth of Alberta breweries.
This was challenged in court however as the Alberta
government then provided subsidies to their breweries to reduce the cost back
down to the 10-cent mark.
According to Notley, “We have spent a long time here in Alberta
supporting the liquor industries of other provinces, and it’s about time that
we stand up for Alberta producers and the workers who are working in this
province.”
That did not pass musters as multiple legal challenges
failed, including a $100 million-dollar lawsuit filed on behalf of out-of-province
craft brewers over losses they suffered due to the Alberta subsidy program.
According
to Pallister, “The federal government
needs to demonstrate leadership on resolving issues within their own areas of
responsibility”.
He then
continued, “Bill C-69 also confirms
Ottawa doesn’t fully understand the tremendous negative impact of additional
regulatory burdens. Whether it’s a pipeline, a transmission line or a
flood relief project, we can’t lose sight of the need for certainty and the
importance of secure market access.”
That sets up a fight tomorrow between Ontario
Premier Doug Ford, Saskatchewan Premier Scott Moe, Alberta Premier Rachael
Notley, and New Brunswick’s Blaine Higgs over the implementation of Carbon Taxes
by the Trudeau government … as well as the crisis facing the oil producing
provinces, inaction on getting pipelines approved and as Pallister was saying,
Bill C-69.
Trudeau
seems hell-bent on not making these topics of specific discussion tomorrow …
the Premiers insist they will be. Stay
tuned … we’ll see how this plays out in the early hours of tomorrow.
In
Kamloops, I'm Alan Forseth. If you have any thoughts on this, I hope you
will share them directly below in the Comments Section.
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