Latest news with #CFTA
Hamilton Spectator
15 hours ago
- Business
- Hamilton Spectator
Saskatchewan and Ontario remove trade barriers
While premiers met in Saskatoon last week, an agreement between Saskatchewan and Ontario to break down trade barriers was announced. Putting ink to paper, Saskatchewan Premier Scott Moe and Ontario Premier Doug Ford signed a Memorandum of Understanding for the two provinces to work on getting rid of roadblocks between the two provinces. 'Saskatchewan has long been a leader in reducing trade barriers,' said Trade and Export Minister Warren Kaeding. 'This MOU is the progress on internal trade that our country needs to remain competitive and resilient.' He explained that the two provinces will work together to improve the flow of goods, services, and labour mobility; recognize the importance of strengthening public safety and the integrity and role of our Crown corporations; and advance direct to consumer alcohol sales while working with other willing jurisdictions to do the same. 'We continue to see success in internal trade through our participation in the Canadian Free Trade Agreement (CFTA) and the New West Partnership Trade Agreement with British Columbia, Alberta, and Manitoba,' Kaeding said. According to statistics from 2021, total interprovincial trade between the two provinces amounted to $6.4 billion. 'Now is the time to take strong action to strengthen trade across Canada,' noted Moe. 'Our province remains committed to removing restrictive barriers that limit the flow of trade. Today's MOU between Saskatchewan and Ontario is just one of the ways we are unlocking the infinite potential that exists within our industries from coast to coast.' Trade makes up around 70 per cent of Saskatchewan's Gross Domestic Product, with the recent signing of the MOU seen as providing more stability when actions south of the border threaten change at a whim. 'With President Trump taking direct aim at Canada's economy, we need to do everything we can to protect Ontario and Canadian workers by super-charging our own internal trade opportunities,' Ford said. 'With both of us coming together today, we are helping Canada unlock up to $200 billion in gains for our economy, and we are showing everyone how all of us premiers are standing up for Canada like never before. Together, we are building a more competitive, more resilient and more self-reliant economy.' Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Yahoo
7 days ago
- Business
- Yahoo
Economic benefits of breaking down provincial trade barriers overestimated, says HEC report
Eliminating interprovincial trade barriers won't boost Canada's gross domestic product as much as forecasted, says a new report by the École des hautes études commerciales de Montréal (HEC). 'Even if we were to tackle the harmonization of provincial regulations — the real challenge — it would be utopian to envisage a 6.9 per cent rise in the country's standard of living over the long term,' the report said. 'This is partly because the very nature of the barriers in question is unlikely to produce such effects, but mainly because the real barriers to interprovincial trade are structural in origin.' Various reports on ending provincial trade barriers estimate that doing so could be worth from $110 billion to $200 billion annually, or $2,900 to $5,100 per capita, for Canada's economy. HEC said the potential economic gains have been overstated because they overestimate the value of eliminating provincial exceptions in the Canadian Free Trade Agreement (CFTA) and underestimate the effect of distance on provincial trade. Weak productivity also makes it harder for businesses to effectively compete across those distances. For example, Quebec has 36 CFTA exceptions, 19 of which relate directly to trade with other provinces and cover areas such as ferries, funeral services, travel agencies, explosives, wildlife, racehorses and co-operatives. 'Ultimately, only a limited number of exceptions explicitly hinder economic activity,' the report said, referring to those related to the forestry and seafood sectors and the provincial body that regulates alcohol sales. HEC also said Quebec's labour exceptions are 'too specific and insufficient in number to have a major impact on economic growth.' Quebec has the most CFTA exceptions, but HEC said all provinces have exceptions that are too narrow to have much of an impact on economic growth if they were eliminated. 'The real issue is the lack of regulatory harmonization, not the exceptions to the CFTA,' the report said, pointing out that federally licensed red-meat-processing facilities can trade across provinces and internationally, but companies with provincial licences cannot. That, the report said, 'stifles productivity and efficiency.' Unlike exemptions, regulatory barriers that cover standards on goods and services cost the economy by interfering with movement and raising costs. Prime Minister Mark Carney, who has made it his mission to eliminate federal barriers to provincial trade by July 1, met with premiers on Monday to come up with a list of projects of national interest that can be accelerated through the regulatory process. Prior to the meeting, the premiers of Ontario, Saskatchewan and Alberta signed agreements to remove trade barriers between the provinces. Politicians tout opening up borders, but HEC wonders if businesses are actually interested in expanding provincial trade, given that a 2023 Statistics Canada survey said 65 per cent of businesses reported they didn't have any interprovincial sales due to a 'lack of interest,' while 8.6 per cent said they avoided interprovincial trade due to barriers. The 9.3 per cent of companies that did trade in other provinces and encountered barriers had problems with distances, including the cost of transportation, the distance between senders and receivers, the availability of transportation and the time it took to place orders and receive them. From a regulatory perspective, provincial sales taxes topped the businesses' list as a barrier. 'Legal barriers appear to be a secondary issue from a company's point of view, a finding that clearly runs counter to the importance attached to them,' the report said. Statistics Canada also said that those companies that undertook interprovincial trade also exported internationally, leading HEC to conclude that productivity is the key to competing over distances. Canada's productivity has been cited as a reason for its economy stagnating over the past decade. Labour productivity in the United States' manufacturing sector is 70 per cent higher than in Canada. HEC said despite a low loonie, Canadian companies have not made their products competitive enough to overcome hurdles associated with distance, with the small size of the market and 'fragmentation' shielding them from competition. These are the economic challenges Canada's next Prime Minister must tackle first Terence Corcoran: 'CEO Carney' to run Canada like a business The result is that the share of domestic demand made up of local products and those from other provinces has shrunk, while the share from exports has risen. 'Without substantial productivity gains, efforts to improve the fluidity of domestic trade will be in vain because Canadian companies will not be able to displace imports in the domestic market,' the report said. 'And whatever happens, the size of the Canadian economy will remain insufficient to guarantee the country's long-term economic prosperity.' • Email: gmvsuhanic@ Sign in to access your portfolio
Yahoo
14-03-2025
- Business
- Yahoo
Alison Simpson: Canada's hidden internal trade walls need to come down to improve the economy
By Alison Simpson More than 150 years after Confederation, Canada has built a strong and resilient economy, but internal trade barriers continue to create challenges for businesses. A Toronto-based company can ship products to New York with fewer restrictions than to Vancouver simply due to differing provincial regulations. Provinces craft policies to meet local needs, but this has led to a patchwork of rules that businesses — especially small and medium-sized enterprises (SMEs) — must navigate. Licensing requirements, procurement rules, transportation regulations and tax structures widely vary, creating inefficiencies that add unnecessary costs and hinder growth. The Canadian Marketing Association (CMA) is pleased that politicians from across the country agree that interprovincial trade barriers must be eliminated in light of the threat of U.S. tariffs. However, many provincial exceptions remain and any progress will stall without stronger enforcement by the federal government. Strengthening our internal market is more important than ever. By addressing interprovincial trade barriers, we can give businesses the stability they need to expand, innovate and compete both domestically and globally. These barriers create inefficiencies that ripple through the entire economy, limiting Canada's potential. Removing existing barriers could lower prices by up to 15 per cent and add up to $200 billion to the domestic economy, according to Transport and Internal Trade Minister Anita Anand. The Canadian Free Trade Agreement (CFTA), introduced in 2017, was intended to create a more seamless national market. Yet, hundreds of provincial exceptions remain, meaning businesses must still navigate inconsistent regulations. This fragmented regulatory environment means businesses face more obstacles moving goods within Canada than exporting internationally. The impact goes beyond businesses: consumers also pay the price. Inefficiencies drive up costs, reduce competition and limit access to goods and services. SMEs make up 98 per cent of Canadian businesses, yet they are disproportionately affected by trade barriers because they lack the legal and financial resources to navigate complex provincial regulations. Large corporations can hire legal teams to manage compliance, but SMEs must allocate time and money to operate across provinces. For example, an Ontario SME aiming to serve Alberta customers might face different tax structures, product labelling requirements and licensing hurdles, making expansion across provinces prohibitively expensive. This prevents Canadian businesses from scaling nationally and discourages entrepreneurship since new businesses are deterred by unnecessary regulatory obstacles. Nearly all economists, business groups and industry associations agree that internal trade barriers hurt the economy, but provinces have been reluctant to relinquish regulatory control. Many provinces protect local industries through regulatory differences, using red tape as a shield to limit competition from businesses in other provinces. Recent commitments from provinces signal growing support for reducing internal trade barriers. Ensuring that these commitments translate into concrete action will be key to unlocking economic growth, creating jobs and expanding opportunities for businesses nationwide. Political inaction has allowed the issue to persist for decades. Recent federal efforts to remove trade restrictions are a step in the right direction, but provinces need to be held accountable for following through. British Columbia Premier David Eby recently confirmed the provinces are working together on a major push to eliminate barriers, including improving labour mobility for professionals. Ontario Premier Doug Ford echoed this, stating that provinces are aligned on moving forward quickly. Nova Scotia has introduced legislation to remove red tape for out-of-province goods and simplify licensing for workers, but only for provinces that offer the same level of access in return. This reciprocity approach encourages progress, but it risks creating an uneven playing field if provinces move at different speeds. These developments are promising, but a coordinated national approach is needed to ensure equal benefits for businesses and workers across Canada. Canada is one country, but it still operates like 13 separate economies when it comes to trade. The result is higher costs, lost business opportunities and a national economy that isn't reaching its full potential. The federal government must encourage provinces to harmonize regulations and simplify licensing, enabling businesses to operate without unnecessary restrictions. One solution is tying federal funding to trade liberalization commitments, ensuring provinces follow through on reform rather than maintaining protectionist policies. If provinces continue to resist meaningful change, Ottawa must use the policy tools at its disposal to encourage compliance. Opinion: Nova Scotia leads the way on internal trade Why exceptions are the rule in interprovincial trade Unwinding trade barriers rising to top of agenda Eliminating interprovincial trade barriers isn't about political optics; it's about unlocking economic potential, boosting productivity and creating a truly national marketplace. The CMA and other business advocates have long called for reform, recognizing that these barriers are not just bad policy, but bad economics. Every year Canada fails to act is another year that businesses remain shackled by unnecessary restrictions. Canada can't afford to wait any longer. The time for action is now. Alison Simpson is chief executive of the Canadian Marketing Association. Sign in to access your portfolio
CBC
07-03-2025
- Business
- CBC
Manitoba distiller cautiously welcomes agreement to lift trade barriers
Brewers and distillers are cautiously optimistic as governments work to remove trade barriers that currently make it hard for alcohol produced in Manitoba to be sold elsewhere in Canada. Earlier this week, the federal government announced it's reached a major deal with most provinces to allow beer and spirits to flow more freely across the country. The governments are expected to have a framework for the deal done within weeks. The latest push to remove the administrative and regulatory burdens that hinder interprovincial trade has been spurred by the on-and-off threats of tariffs on Canadian goods exported to the U.S. Brock Coutts, co-owner of Patent 5 in Winnipeg, said he hopes this make it easy for the company to ship its product to bigger markets like Ontario, though he's wary. "Each of the provinces have a very convoluted bureaucracy with different rules," he told Information Radio. "For everyone to agree on that, I think would be a bit of a challenge." Manitoba is one of the provinces that stand to gain the most by removing the administrative and regulatory barriers that hinder trade, which, according to a 2019 International Monetary Fund report, would add $245 billion to the Canadian economy. The province is one of the most open to alcohol shipments, allowing residents to shop online for booze from other provinces without restrictions. The province is also a signatory of the New West Partnership Trade Agreement, which creates a single economic region with British Columbia, Alberta and Saskatchewan. Perry Joyal, head brewer and operations manager at Torque Brewing, said their only market outside Manitoba is Saskatchewan. The brewer had previously looked into selling its product in Ontario, but bumped against high costs, including upfront fees to get listed by that province's liquor board. "They're actually kind of prohibitive. We would have to raise our prices to the point where they wouldn't be palatable to the consumer," Joyal said. "Then when you add in the additional cost of having to transport everything a province away as opposed to selling in town here in Winnipeg … it's always been a little bit too expensive for us." The governments have directed the committee in charge of implementing the Canada Free Trade Agreement (CFTA) to developed a countrywide credential recognition plan by June 1. Tyler Dyck, president of the Canadian Craft Distillers Alliance and a vintner in B.C., said distillers and brewers essentially pay "greedy" liquor boards for shelf space. Dyck said the question is to what extent the deal will allow provinces to ship product straight to consumers in other provinces without any markup. The federal government said most first ministers committed to allowing direct-to-consumer sales. The CFTA's action plan calls for the expansion of sales channels for alcoholic beverages. Dyck said distillers in provinces that do not have incentives like agricultural rebates often can't really afford to make their own spirits, so they're forced to import. "All our government liquor stores … they're actually helping every other country's economy much more than they're helping ours, because quite frankly, they're putting them on display and allowing them to occupy 99 per cent of the shelf space," he said. Coutts said cutting the federal component of excise taxes would also help foster local growth. "I just wonder if there's a real strong desire of anyone right now in government to tackle a problem like that," he said.
CBC
06-03-2025
- Business
- CBC
Ottawa, provinces agree to open the tap on Canadian booze
Social Sharing Ottawa has reached a deal with the majority of provinces to allow Canadian booze to flow more freely across the country just as U.S. liquor is pulled from their store shelves. The move is part of a host of changes being worked on by the federal, provincial and territorial governments that were announced late Wednesday to add $200 billion to the Canadian economy while it's rocked by U.S. tariffs. "This is unprecedented action to reduce trade barriers in Canada," Internal Trade Minister Anita Anand told CBC News. "This is a pivotal moment for Canada to take bold and united action in the face of the United States' unjustified decision to impose 25 per cent tariffs on Canadian goods." All provinces, except P.E.I. and Newfoundland and Labrador, have agreed to remove the obstacles preventing their alcohol from being sold in other jurisdictions. The provincial governments are expected to seal the agreement in a framework within weeks, which Anand said will lead to more Canadian alcohol sales soon after that. "Buying B.C. wine in Ottawa is going to become a reality, because we are going to see trade barriers come down in Canada," she said. Canada-wide credential recognition for all professions The federal, provincial and territorial governments are also working toward recognizing certified professionals no matter where they received their credentials in Canada. Following a meeting with Prime Minister Justin Trudeau on Tuesday, the first ministers directed the committee on Internal Trade — which is responsible for implementing the Canada Free Trade Agreement (CFTA) — to develop a Canada-wide credential recognition plan by June 1. WATCH | The path to nixing internal trade barriers: Federal minister suggests interprovincial trade barriers could disappear quickly 29 days ago Duration 2:07 Anand said every profession will be brought under the new structure, but it will be up to provinces and territories to decide which jobs to prioritize. Quebec is behind the move, but the province is expected to adopt the new measures differently since it has linguistic considerations. Along with recognizing labour credentials, the premiers are launching negotiations to allow goods certified in one province to be bought or sold in another without additional red tape, excluding food. The provinces and territories are also reviewing their exceptions under the CFTA to see how many they can eliminate by June 1 to encourage more trade and opportunity. Ottawa recently announced the removal of more than half of the remaining federal exceptions.
