6 days ago
Breakenridge: Alberta should not squander opportunity to remove own trade barriers
We are now less than a month from what was supposed to be the ushering in of a new era of free trade in Canada. However, that may turn out to be somewhat less than advertised.
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Prime Minister Mark Carney had previously pledged to dismantle trade barriers within Canada by July 1. Now, the pledge is more modest: Ottawa intends to introduce legislation before Canada Day that will aim to eliminate federal trade barriers.
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In fairness, there is an inherent limit on federal ambition on this issue. The federal government can address its own trade barriers, but can't force the provinces to do so. The good news is that there's nothing stopping the provinces from taking action.
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The tariff threat from U.S. President Donald Trump has underscored the urgency of making trade within Canada as free as possible. There should be added incentive for Alberta to make this work and demonstrate the economic value of remaining a part of Canada.
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Premier Danielle Smith has previously boasted — not without justification — that 'Alberta is the national leader in interprovincial trade.'
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On the eve of Monday's first ministers' meeting in Saskatoon, for example, Alberta and Ontario announced (as did Ontario and Saskatchewan) a non-binding memorandum of understanding intended to 'improve the free flow of goods and services between the two provinces' and 'simplify requirements for regulated professions.' These are positive steps, to be sure.
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However, we're still playing catch-up to another province.
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Earlier this year, Nova Scotia introduced legislation to remove trade barriers and ensure the mutual recognition of goods, services, regulations and credentials across all sectors of the Canadian economy. A new analysis shows just how valuable and beneficial it would be for the rest of the country to follow suit.
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In a report for the Montreal Economic Institute, University of Calgary economics professor Trevor Tombe looks at the benefits of implementing Nova Scotia-style reforms more broadly, and then quantifies the economic spinoff effect.
