While the BC government states that, removing impediments to trade create a safer and more dependable business environment for investors, interprovincial trade remains tangled in protectionism
In just 29 words (Constitution
Act Section 121) the Fathers of Confederation managed to state that:
"All Articles of the Growth,
Produce, or Manufacture
of any one of the Provinces shall,
from and after the Union, be admitted free
into each of the other Provinces."
And as
the Huffington Post commented:
How beautifully succinct; how pellucidly clear. No need for clumsy jargon about "growing the economy," gauzy "visions for promoting trade," or cross-fingered promises of "working groups" to "explore opportunities." And the best part: it's already part of the supreme law of the land.
How beautifully succinct; how pellucidly clear. No need for clumsy jargon about "growing the economy," gauzy "visions for promoting trade," or cross-fingered promises of "working groups" to "explore opportunities." And the best part: it's already part of the supreme law of the land.
Year
after year after year however, both provincial and federal politicians have
huffed and puffed about removing inter-provincial trade barriers. Still 150 years later we have yet to see, or
find, one news story announcing an end to these barriers.
We in Canada’s two most westerly provinces (British Columbia and Alberta) approve by a majority of over 60% the removal of barriers to freer trade between provinces ... not surprisingly, protectionist Quebec has residents at the lowest end, with just 43% agreeing to lowering of trade restrictions. The +60% figure for British Columbia makes sense given we are a trading province, and as the BC government stated last September, this is especially important considering that about 40% of Canada’s trade takes place within its own borders.
We in Canada’s two most westerly provinces (British Columbia and Alberta) approve by a majority of over 60% the removal of barriers to freer trade between provinces ... not surprisingly, protectionist Quebec has residents at the lowest end, with just 43% agreeing to lowering of trade restrictions. The +60% figure for British Columbia makes sense given we are a trading province, and as the BC government stated last September, this is especially important considering that about 40% of Canada’s trade takes place within its own borders.
Two
stories from CBC News seemed to capture things rather succinctly however, when
it comes to the lack of headway on breaking down barriers:
Canadians, after all, can't be allowed to
just run around Canada willy-nilly, buying whatever they want ... is there any
economic good in them (our interprovincial trade barriers) ... "No.
The answer is no." (Daniel Schwanen, at the C.D. Howe Institute)
CBC
NEWS ... July 16th, 2018
Everyone loves to talk about interprovincial trade - but tangible progress is scarce ... all the provincial and territorial trade ministers were given a symbolic pair of golden scissors to remind them to start cutting interprovincial trade barriers ... the trouble is, they aren't using them.
Everyone loves to talk about interprovincial trade - but tangible progress is scarce ... all the provincial and territorial trade ministers were given a symbolic pair of golden scissors to remind them to start cutting interprovincial trade barriers ... the trouble is, they aren't using them.
So,
what is happening?
Not a
damn thing really.
While the
federal government continues to work on negotiating international free trade
agreements ... we have yet to see headway being made here in our own
country. That, despite agreement that it
needs to happen. Here in British
Columbia a government news story from last fall (Sept 10th)
indicated that:
“Improving the
flow of goods and services helps to create a strong and diverse economy,
allowing B.C. companies to grow their business and create good jobs and
opportunities in every corner of the province.”
Still, just two
and a half months ago the Vancouver Sun brought us this ridiculous statement
... examples of Canadian companies finding it easier to import goods and services internationally than trading with their neighbouring provinces are far too plentiful — and frequently absurd ...
... examples of Canadian companies finding it easier to import goods and services internationally than trading with their neighbouring provinces are far too plentiful — and frequently absurd ...
Someone however, seems to be attempting to restart discussions on freer inter-provincial trade.
At the
end of February, Manitoba Premier Brian Pallister commented on the tremendous cost of internal trade barriers
to the economy and to households across Canada, and called for a grand bargain
to bring collaborative action in the national interest.
“Our commitment to a national vision has eroded over the past few decades. We have taken some small positive steps but we need to think bigger and move faster,” Pallister said. “We need leadership in order to rediscover the blueprint for Confederation.”
In his release to the media, Pallister commented that he has sent a letter to fellow premiers seeking their support for a proposal to address two of the most important issues before Canadians: sustainable and predictable federal support for health care, and reduction of inter-provincial trade barriers.
“I am proposing that we seek a commitment for stable federal health-care funding in return for our support for federal legislation establishing a Canadian economic union,” said Pallister.
“Our commitment to a national vision has eroded over the past few decades. We have taken some small positive steps but we need to think bigger and move faster,” Pallister said. “We need leadership in order to rediscover the blueprint for Confederation.”
In his release to the media, Pallister commented that he has sent a letter to fellow premiers seeking their support for a proposal to address two of the most important issues before Canadians: sustainable and predictable federal support for health care, and reduction of inter-provincial trade barriers.
“I am proposing that we seek a commitment for stable federal health-care funding in return for our support for federal legislation establishing a Canadian economic union,” said Pallister.
Most
Canadians will be surprised to learn just how much the tangle of red tape, that
ties up free trade between provinces, costs each and everyone of us. According to Pallister, “... trade barriers cost Canadians the equivalent
of a seven per cent sales tax.”
Pallister noted that while our premiers have ... recently made some modest progress on reducing trade barriers, we need to think much bigger in order to achieve the real results we all desire.
Reaction from the BC government, and in particular Minister Bruce Ralston’s Ministry of Trade, Jobs, and Technology, regrettably is not forthcoming on this topic.
Pallister noted that while our premiers have ... recently made some modest progress on reducing trade barriers, we need to think much bigger in order to achieve the real results we all desire.
Reaction from the BC government, and in particular Minister Bruce Ralston’s Ministry of Trade, Jobs, and Technology, regrettably is not forthcoming on this topic.
Hoping
to see where the BC government is on taking down barriers, and perhaps getting
a response to Premier Pallister's recent remarks, I commented to his Ministry:
The issue of trade
across provincial borders seems to come up on a fairly regular basis, and so I
am wondering what specific steps the BC government is taking to try and have
rules, regulations, and red-tape reduced so that freer trade across Canada is available,
and to make it easier for Canadian producers and manufacturers have better
opportunity to sell to our own citizens.
The
answer I received was, “Unfortunately, we
don’t have anything we can share on this at this time.”
I
honestly do not know if I was being told that Ralston’s Ministry actually did
indeed have no information on the topic, or instead that they were unable to
provide answers to what I requested.
They
are, in my opinion, indeed two separate things. That said, I have to believe work is being done not only by our government in BC ... but across the country
on this topic. Either that, or Manitoba
Premier Brian Pallister’s words are falling on deaf ears, at least here in BC.
He is
stating that there needs to be discussions and proposals for federal
legislation to establish the principle of free flow of goods and services
within Canada.
Furthermore,
he believes that while provinces would retain the ultimate responsibility for
removing barriers that fall under exclusive provincial jurisdiction, federal
legislation would empower Canadians to challenge all barriers that obstruct
their right to buy, sell, work and invest in every part of Canada.
“The grand bargain we envision with the federal government would allow us to pursue real nation building,” said Pallister.
“The grand bargain we envision with the federal government would allow us to pursue real nation building,” said Pallister.
He also remarked he was looking forward to hearing the thoughts and feedback of his provincial and territorial colleagues on the topic.
Hopefully
he’ll have better luck than I, as a British Columbian, did when asking that
very thing of my own government
As Brian
Lee Crowley, managing director at the Macdonald-Laurier Institute said, “(Brian Pallister) is issuing a constructive
challenge to his fellow premiers to move beyond entrenched positions and work
together to make progress on two issues that matter enormously to
Canadians. That’s leadership.”
And as a story from Macleans magazine last
October observed ... a solid
majority of Canadians wants to see those impediments to the free flow of goods
and services inside the country eliminated ... inter-provincial trade barriers
should be scrapped because they “restrict choice and competitiveness in
Canada’s consumer markets ...
And finally, I do indeed hope to
hear back from the BC government on what is being done with regards to making inter-provincial trade between provinces easier – it’s an important topic – one that
while help grow the economy, create more jobs, and save with reduced costs for
each of us.
I look forward to clarity on their answer
... and a reconsideration of providing a response on this topic.
I’m
Alan Forseth in Kamloops. Please take a
moment to share any thoughts you have on this commentary in the Comment Section
below. And as always, I encourage you to
pass this on to any you feel may be interested.
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