Quebec says it 'is open to interprovincial trade' after tabling new bill

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4 days ago

OTTAWA – Quebec is joining the Canadian internal trade party. One of the most regulated provinces in the country has introduced 'the most ambitious bill in Canada' aimed at removing its trade barriers.
'We are sending a signal that Quebec is open to interprovincial trade,' said Christopher Skeete, Quebec's minister delegate for the economy. 'We must accept to open our market.'
Quebec is yet another Canadian province to remove such barriers, along with Nova Scotia, Ontario and New Brunswick. Nova Scotia was the first province to pass a new law encouraging reciprocity between provinces and territories earlier this year.
'For me, reciprocity is not the answer. Our solution has been to open for everybody regardless, and we believe if everybody does that, we each achieve the same goal,' Skeete said in an interview with National Post.
With Prime Minister Mark Carney scheduled to meet with his provincial counterparts in the coming days, Quebec announced it wants to open its market to other provinces by allowing any of their products to be marketed, used or consumed without any other requirement.
The idea is to facilitate trade in goods by adopting the principle of automatic recognition applicable to all Canadian products. Exceptions will be announced later, but alcohol is not among them. Though, it will be treated 'separately' due to its specific characteristics.
'If it's good for somebody in Ontario, it should be good for Quebecers, unless we have a reason to say otherwise,' Skeete said. The reasons may be related to the protection of human safety, health, or the environment, for example. The construction sector is not included because the Quebec Building Code and the sector are different from those in the rest of the country.
According to the government, 60 per cent of Quebec businesses have no activity in the Canadian market. However, since 2018, domestic trade has increased by 34 per cent to reach nearly $200 billion. Quebec businesses currently export goods and services worth $108 billion and import $96 billion.
'In Quebec, we have our Civil Code… so it creates a little bit of a difference in the way that we write laws here, said Skeete. We had to do more work to make sure that we harmonize a little bit more with the rest of Canada.'
Skeete denied that Quebec is the most protectionist province in the country, nor the most regulated, even though it has the most trade exceptions. He admits that his province is 'unique' and 'different' from others.
The legal traditions are different, there is a minority language to protect, and supply management in the dairy, egg, and poultry sectors is a top priority.
A 2023 study by the Montreal Economic Institute (MEI) concluded that Quebec was the most isolated province and, more recently, that it could add up to $70 billion to Canada's GDP if it abolished its trade barriers.
Skeete said the new law could add $10 billion to $25 billion to the province's GDP. 'These are the preliminary figures we have. I'm comfortable with them,' he said.
The MEI, a free market think tank often critical of the Quebec government, welcomed the bill, calling it 'a major step in the right direction to liberalize interprovincial trade.'
'(An) area of concern is the mention of a list of exemptions that will be coming later. While this is not unusual for such bills, it's important to recognize that the longer that list becomes, the smaller the gains will be,' said Gabriel Giguère, senior policy analyst at the MEI.
In Ottawa, Internal Trade Minister Chrystia Freeland praised the 'great leadership from Quebec' and Minister Skeete.
'As our economy is battered by U.S. tariffs, we can work together to make Canada stronger and more resilient by building one Canadian economy, instead of 13,' she wrote on social media.
However, the National Assembly unanimously rejected the notion of 'one Canadian economy, instead of 13'.
In a motion, Quebec's MNAs reaffirmed Quebec's right 'to protect its own interests, particularly economic, cultural, and linguistic, based on its distinct priorities and social values, while working to reduce barriers to interprovincial trade.'
Skeete said that he agrees with the federal government' 'objective' which is to facilitate trade between the provinces. Though, he disagrees with the 'one entity'.
'We're not the same. And we are federated states, a group of federated states, each with our own concerns and particularities, and that must continue going forward,' Skeete said.
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