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Hamilton Spectator
3 hours ago
- Business
- Hamilton Spectator
Nova Scotia's ambitious ‘Wind West' offshore energy plan wins support with conditions
HALIFAX - Two leading environmental groups are giving a thumbs up to Nova Scotia's ambitious plan to dramatically expand its fledgling offshore wind energy industry. But both groups were quick to add caveats. On Monday, Premier Tim Houston said the province's plan to license enough offshore wind farms to produce five megawatts of electricity would be increased eightfold to 40 megawatts, well beyond the 2.4 megawatts Nova Scotia needs. He called on Ottawa to help cover the costs of his new Wind West project, saying the excess electricity could be used to supply 27 per cent of Canada's total demand. 'Nova Scotia is on the edge of a clean energy breakthrough,' the Progressive Conservative premier said in an online video, adding the province is poised to become an 'energy superpower.' Gretchen Fitzgerald, executive director of Sierra Club Canada, said the premier's bold plan, which includes building transmission lines across the country, represents an exciting opportunity for the province. 'It could be a game-changer for the region and for Canada,' she said in an interview from Ottawa. 'But it needs to be done correctly and with consultations.' Fitzgerald said the Nova Scotia and Canadian governments must focus on securing long-term benefits from the nascent offshore wind industry because they did a poor job on that front when dealing with the offshore oil and gas sector. 'We have to make sure that we are not selling out what is a massive resource for less benefit than communities should have,' Fitzgerald said, adding that Nova Scotia continues to suffer from a high rate of energy poverty. In May of this year, utility affordability expert Roger Colton produced a report showing that 43 per cent of Nova Scotians were struggling to pay their energy bills — the highest proportion in Canada. While Fitzgerald applauded Houston's clean energy plan, she criticized what she described as the premier's populist penchant for taking decisive action before consulting with experts and the public. 'Moving from a couple hundred turbines to thousands in the next decade needs to be done in a staged way so we learn how to do this right,' she said, adding Houston appears to have adopted a ''move-fast-and-break-things mentality.' '(That) can lead to unacceptable harm to sensitive ocean life,' she said. 'From a community benefits and acceptance point of view, breaking trust can be the biggest barrier to getting to good climate solutions.' In October 2023, the Public Policy Forum released a study saying Sable Island Bank, an ocean area about 180 kilometres south of Nova Scotia, is among the world's best locations for wind energy generation. 'It and several other similarly endowed areas off the coast of Atlantic Canada hold the potential to place the region among the leading global hubs of offshore wind-powered energy development,' says the report from the independent non-profit think tank. It goes on to say that as the world shifts from a dependence on fossil fuels to forms of energy that do not emit climate-changing greenhouse gases, Atlantic Canada is facing 'a once-in-a-lifetime opportunity ... to recover an economic vitality comparable to the Age of Sail — fittingly built again on the power of wind at sea.' The report says the installation of 15 gigawatts of offshore wind generation would create about 30,000 direct jobs annually. Despite the hype, the industry must also earn acceptance from Nova Scotia's fishing industry, which in 2023 contributed $2.5 billion to the province's economy and employed 19,000 people. In Halifax, a spokesman for the Ecology Action Centre called on the provincial government to build public trust, especially with coastal communities. 'There really needs to be a priority on stakeholder engagement for all ocean users,' said senior energy co-ordinator Thomas Arnason McNeil. 'We're going to need to prioritize ecological safeguards and preserve the existing livelihoods that we have. That includes the fishing industry. That's half the economy in Nova Scotia.' Still, he said the province's big push for clean energy is on the right track, especially when it comes to building out its electricity grid to better connect with the rest of the country. If done right, the payoff would be enormous, Arnason McNeil said. 'We're talking serious job creation here and a lot of revenue potentially,' he said. 'The bottom line is that you have to do this right. (But) the prize at the end of the road is monumental in terms of the benefits.' A call for bids to build enough offshore turbines to generate five gigawatts of electricity is expected as early as this year. This report by The Canadian Press was first published June 8, 2025. 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 .
Toronto Star
3 hours ago
- Business
- Toronto Star
Nova Scotia's ambitious ‘Wind West' offshore energy plan wins support with conditions
HALIFAX - Two leading environmental groups are giving a thumbs up to Nova Scotia's ambitious plan to dramatically expand its fledgling offshore wind energy industry. But both groups were quick to add caveats. On Monday, Premier Tim Houston said the province's plan to license enough offshore wind farms to produce five megawatts of electricity would be increased eightfold to 40 megawatts, well beyond the 2.4 megawatts Nova Scotia needs. He called on Ottawa to help cover the costs of his new Wind West project, saying the excess electricity could be used to supply 27 per cent of Canada's total demand. 'Nova Scotia is on the edge of a clean energy breakthrough,' the Progressive Conservative premier said in an online video, adding the province is poised to become an 'energy superpower.' ARTICLE CONTINUES BELOW Gretchen Fitzgerald, executive director of Sierra Club Canada, said the premier's bold plan, which includes building transmission lines across the country, represents an exciting opportunity for the province. 'It could be a game-changer for the region and for Canada,' she said in an interview from Ottawa. 'But it needs to be done correctly and with consultations.' Fitzgerald said the Nova Scotia and Canadian governments must focus on securing long-term benefits from the nascent offshore wind industry because they did a poor job on that front when dealing with the offshore oil and gas sector. 'We have to make sure that we are not selling out what is a massive resource for less benefit than communities should have,' Fitzgerald said, adding that Nova Scotia continues to suffer from a high rate of energy poverty. In May of this year, utility affordability expert Roger Colton produced a report showing that 43 per cent of Nova Scotians were struggling to pay their energy bills — the highest proportion in Canada. While Fitzgerald applauded Houston's clean energy plan, she criticized what she described as the premier's populist penchant for taking decisive action before consulting with experts and the public. 'Moving from a couple hundred turbines to thousands in the next decade needs to be done in a staged way so we learn how to do this right,' she said, adding Houston appears to have adopted a ''move-fast-and-break-things mentality.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW '(That) can lead to unacceptable harm to sensitive ocean life,' she said. 'From a community benefits and acceptance point of view, breaking trust can be the biggest barrier to getting to good climate solutions.' In October 2023, the Public Policy Forum released a study saying Sable Island Bank, an ocean area about 180 kilometres south of Nova Scotia, is among the world's best locations for wind energy generation. 'It and several other similarly endowed areas off the coast of Atlantic Canada hold the potential to place the region among the leading global hubs of offshore wind-powered energy development,' says the report from the independent non-profit think tank. It goes on to say that as the world shifts from a dependence on fossil fuels to forms of energy that do not emit climate-changing greenhouse gases, Atlantic Canada is facing 'a once-in-a-lifetime opportunity ... to recover an economic vitality comparable to the Age of Sail — fittingly built again on the power of wind at sea.' The report says the installation of 15 gigawatts of offshore wind generation would create about 30,000 direct jobs annually. Despite the hype, the industry must also earn acceptance from Nova Scotia's fishing industry, which in 2023 contributed $2.5 billion to the province's economy and employed 19,000 people. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW In Halifax, a spokesman for the Ecology Action Centre called on the provincial government to build public trust, especially with coastal communities. 'There really needs to be a priority on stakeholder engagement for all ocean users,' said senior energy co-ordinator Thomas Arnason McNeil. 'We're going to need to prioritize ecological safeguards and preserve the existing livelihoods that we have. That includes the fishing industry. That's half the economy in Nova Scotia.' Still, he said the province's big push for clean energy is on the right track, especially when it comes to building out its electricity grid to better connect with the rest of the country. If done right, the payoff would be enormous, Arnason McNeil said. 'We're talking serious job creation here and a lot of revenue potentially,' he said. 'The bottom line is that you have to do this right. (But) the prize at the end of the road is monumental in terms of the benefits.' A call for bids to build enough offshore turbines to generate five gigawatts of electricity is expected as early as this year. This report by The Canadian Press was first published June 8, 2025.
Winnipeg Free Press
3 hours ago
- Business
- Winnipeg Free Press
Nova Scotia's ambitious ‘Wind West' offshore energy plan wins support with conditions
HALIFAX – Two leading environmental groups are giving a thumbs up to Nova Scotia's ambitious plan to dramatically expand its fledgling offshore wind energy industry. But both groups were quick to add caveats. On Monday, Premier Tim Houston said the province's plan to license enough offshore wind farms to produce five megawatts of electricity would be increased eightfold to 40 megawatts, well beyond the 2.4 megawatts Nova Scotia needs. He called on Ottawa to help cover the costs of his new Wind West project, saying the excess electricity could be used to supply 27 per cent of Canada's total demand. 'Nova Scotia is on the edge of a clean energy breakthrough,' the Progressive Conservative premier said in an online video, adding the province is poised to become an 'energy superpower.' Gretchen Fitzgerald, executive director of Sierra Club Canada, said the premier's bold plan, which includes building transmission lines across the country, represents an exciting opportunity for the province. 'It could be a game-changer for the region and for Canada,' she said in an interview from Ottawa. 'But it needs to be done correctly and with consultations.' Fitzgerald said the Nova Scotia and Canadian governments must focus on securing long-term benefits from the nascent offshore wind industry because they did a poor job on that front when dealing with the offshore oil and gas sector. 'We have to make sure that we are not selling out what is a massive resource for less benefit than communities should have,' Fitzgerald said, adding that Nova Scotia continues to suffer from a high rate of energy poverty. In May of this year, utility affordability expert Roger Colton produced a report showing that 43 per cent of Nova Scotians were struggling to pay their energy bills — the highest proportion in Canada. While Fitzgerald applauded Houston's clean energy plan, she criticized what she described as the premier's populist penchant for taking decisive action before consulting with experts and the public. 'Moving from a couple hundred turbines to thousands in the next decade needs to be done in a staged way so we learn how to do this right,' she said, adding Houston appears to have adopted a ''move-fast-and-break-things mentality.' '(That) can lead to unacceptable harm to sensitive ocean life,' she said. 'From a community benefits and acceptance point of view, breaking trust can be the biggest barrier to getting to good climate solutions.' In October 2023, the Public Policy Forum released a study saying Sable Island Bank, an ocean area about 180 kilometres south of Nova Scotia, is among the world's best locations for wind energy generation. 'It and several other similarly endowed areas off the coast of Atlantic Canada hold the potential to place the region among the leading global hubs of offshore wind-powered energy development,' says the report from the independent non-profit think tank. It goes on to say that as the world shifts from a dependence on fossil fuels to forms of energy that do not emit climate-changing greenhouse gases, Atlantic Canada is facing 'a once-in-a-lifetime opportunity … to recover an economic vitality comparable to the Age of Sail — fittingly built again on the power of wind at sea.' The report says the installation of 15 gigawatts of offshore wind generation would create about 30,000 direct jobs annually. Despite the hype, the industry must also earn acceptance from Nova Scotia's fishing industry, which in 2023 contributed $2.5 billion to the province's economy and employed 19,000 people. In Halifax, a spokesman for the Ecology Action Centre called on the provincial government to build public trust, especially with coastal communities. 'There really needs to be a priority on stakeholder engagement for all ocean users,' said senior energy co-ordinator Thomas Arnason McNeil. 'We're going to need to prioritize ecological safeguards and preserve the existing livelihoods that we have. That includes the fishing industry. That's half the economy in Nova Scotia.' Monday Mornings The latest local business news and a lookahead to the coming week. Still, he said the province's big push for clean energy is on the right track, especially when it comes to building out its electricity grid to better connect with the rest of the country. If done right, the payoff would be enormous, Arnason McNeil said. 'We're talking serious job creation here and a lot of revenue potentially,' he said. 'The bottom line is that you have to do this right. (But) the prize at the end of the road is monumental in terms of the benefits.' A call for bids to build enough offshore turbines to generate five gigawatts of electricity is expected as early as this year. This report by The Canadian Press was first published June 8, 2025.
Politico
6 days ago
- Business
- Politico
Nation-builders, unite
Presented by U15 CANADA – Canada's Leading Research Universities Send tips | Subscribe here | Email Canada Playbook | Follow Politico Canada Happy Monday. Thanks for reading Canada Playbook. Let's get into it. → MARK CARNEY has his right-hand man. → Carney and the premiers enter decision mode in Saskatoon. → What else we're watching: Parliament, interest rates and postal workers. THE FIRST THING RIGHT-HAND MAN — At long last, MARK CARNEY has a permanent chief of staff. MARC-ANDRÉ BLANCHARD, Canada's former top envoy at the U.N., starts in July. Carney confirmed the hire on Sunday. — CV scan: Blanchard served on JUSTIN TRUDEAU's transition team in 2015 and then repped Trudeau's government at the U.N. for a little more than four years. (He left that post shortly after Canada lost a bid for the Security Council.) — Sounds like Carney: When Blanchard was honored by the Public Policy Forum in April, his remarks would've gone over well in the Prime Minister's Office. We've plucked three quotes from that speech delivered with some of Ottawa's top bureaucrats in the room. → 'To succeed in delivering faster, we need to remember that excellence in public policy does not require perfection. It requires progress, delivery and results.' → 'In today's world, with this climate, this economy, this global uncertainty, the real breakthroughs, the ones that will shape the next generation, will come when both sectors, public and private, start truly collaborating.' → 'There is no shortcut to trust. There is only the steady, honest, often uncelebrated, work of listening, of engaging with people who disagree with us, not thinking we know better, of standing in someone else's shoes, of doing the right thing and the right thing is often not theoretical perfection, but a good old Canadian compromise, even when it's hard.' Trade war TRUMPQUAKE — Canada's steel industry spent the weekend acclimating to new levels of anxiety after DONALD TRUMP told a crowd of steel workers near Pittsburgh on Friday that he would double tariffs on steel imports to 50 percent. The Canadian Steel Producers Association warned that tariff hikes would 'create mass disruption and negative consequences across our highly integrated steel supply chains and customers on both sides of the border.' — The official line: Canada-U.S. Trade Minister DOMINIC LEBLANC kept his powder dry over the weekend, confirming he had 'taken note' of Trump's escalation. → Elsewhere in tariffs: U.S. Commerce Secretary HOWARD LUTNICK told Fox News on Sunday that Trump will always find a way to keep tariffing trading partners, whatever courts might rule about the legality of his measures. 'He has so many other authorities that even in the weird and unusual circumstance where this was taken away, we just bring on another or another or another. Congress has given this authority to the president, and he's going to use it,' Lutnick said. LISTEN UP, OTTAWA DECISION TIME — Get used to hearing about 'nation-building.' That phrase will be all the rage at today's First Ministers' Meeting in Saskatoon, where Prime Minister MARK CARNEY and the premiers will hash out how to make the most out of Confederation. Carney teed up the agenda-topper during his interview last week with CBC's DAVID COCHRANE: 'We need to move on these nation-building projects. So projects that bring Canada together, projects that diversify our economy, projects that help us export to new markets and really move this economy forward.' — Wish lists: Early on in his time as PM, Carney asked premiers to submit priorities. Last week, reporters got their hands on a May 23 briefing document that shows a 'national interest' bill is in the works to fast-track nation-building projects with a streamlined regulatory approval process. Ottawa consulted provinces on the legislation. — Compare/contrast: Yukon Premier RANJ PILLAI is in the room today — his final FMM before he steps down as premier in a few weeks. We asked Pillai to compare former PM JUSTIN TRUDEAU's style at the premiers table to Carney's approach. 'Prime Minister Trudeau made time for a dialog to happen. So there was always a respectful exchange,' Pillai told us last week on the sidelines of CANSEC, the defense and security trade show that took over Ottawa's EY Centre. 'The difference now, which is more suited for me, is we are walking into meetings with a goal, and we're driving to an output. It's much more like a business meeting versus a political dialog. And that's the type of structure and platform we need now,' Pillai said. — Action items: Pillai's first go-around with Carney in charge was at the Canadian War Museum on March 21 — days before the PM called an election. 'My reflection [was] there might have been some policy differences, but everybody was walking out of that meeting very impressed with the decisions that were being made in real time, and entrusting our own abilities, and the people around us, to work at that speed,' Pillai said. — Pressure's on: Carney has set sky-high expectations for today's confab — a major test of his commitment to, and these are his words, 'Build, baby, build.' → Step by step: Alberta Premier DANIELLE SMITH and Ontario Premier DOUG FORD signed a memorandum of understanding meant to knock down trade barriers. The Globe reported that Ford also struck deals with Saskatchewan and Prince Edward Island. TALK OF THE TOWN NEXT UP: TRIVIA NIGHT — Our next Playbook Trivia Night is booked for this evening at the Met. Doors open at 7 p.m. First round starts at 7:30. — We still have a few tables available. RSVP via this Google Form. THREE THINGS WE'RE WATCHING PARLIAMENT — The government won't fall this week, nor any time soon. Don't expect the kind of brinkmanship that eventually comes to shape most minority governments. But we will get our first taste of voting patterns in a House of Commons only days removed from the pomp of a throne speech. — Voting time: MPs will spend most of the week arguing about the priorities laid out in the speech delivered by the king. Today, they'll vote on a Conservative motion tied to the throne speech debate that calls on the government to unveil an 'economic update or budget' before the chamber adjourns for the summer later this month. Spoiler alert: Liberals are waiting for the fall for their big budget reveal. They won't side with ANDREW SCHEER's crew on this one. — Opposition day: The House will debate the government's main estimates on Thursday — a spending package that requires parliamentary approval in order for the federal supply of money to keep flowing. Which means the opposition get to introduce a 'supply day' motion meant to spur headlines and create a little mischief. BANK OF CANADA — Odds are low that TIFF MACKLEM will budge the central bank's target rate from 2.75 percent when he steps up to a mic on Wednesday for his regularly scheduled rate announcement. Economists widely expect Macklem to stand pat for the second time in a row. — CIBC's AVERY SHENFELD has his sights set on later this year: 'Since the tariff outcome could now take longer to resolve amidst legal uncertainties we could end up getting only one 25 [basis point] cut this year, perhaps in Q4, rather than the two cuts we had projected.' — BMO's DOUG PORTER projects rates will eventually settle at 2 percent, but the bank might not rush to get there: 'We continue to believe that this is not the end of the line for rate cuts, but we are officially pushing back our timing of those trims, to restart in late July, and perhaps stretching into early next year.' LABOR RELATIONS — The Carney government is staring down its first labor relations test. Canada Post and the union that represents 55,000 postal workers are getting nowhere at the bargaining table. The employer wants Jobs Minister PATTY HAJDU to force a vote on a final offer sent to the Canadian Union of Postal Workers. In a statement, the union instead invited Canada Post to 'fair, final and binding arbitration to resolve all outstanding issues at the bargaining table.' — Context: Following a punishing postal strike last year, Ottawa tasked a commission with recommending a path forward for the two sides. WILLIAM KAPLAN's final report painted a bleak picture of the national postal service's viability — including this line: 'Canada Post is facing an existential crisis: It is effectively insolvent, or bankrupt. Without thoughtful, measured, staged, but immediate changes, its fiscal situation will continue to deteriorate.' — Government response: Hajdu and the secstate for labor, JOHN ZERUCELLI, have met with both sides in recent days. 'I urged both parties to continue working together to find an agreement that works for both parties and maintains a strong and lasting postal industry,' Hajdu said in a statement. MORNING MUST-CLICKS — The Globe's STEPHANIE LEVITZ writes that Conservative Leader PIERRE POILIEVRE could face a leadership review as early as March. — The Canadian Press reports: Manitoba officials say wildfire contained in Flin Flon, wind change could push it into city — From CBC News: No relief in sight from wildfires as 20 Sask. communities under evacuation orders — The inaugural episode of 'The Conversation' with POLITICO's DASHA BURNS: DR. OZ on the future of Medicaid, Trump's megabill and AI avatar health care" — From the Toronto Star: Memories, markdowns and mannequins — and a designer in mourning — mark the final day at Hudson's Bay Toronto flagship store — DAN MCCARTHY asks in Ottawa Life: Is an energy corridor the new national dream or an Ottawa mirage? Where the leaders are — Prime Minister MARK CARNEY attends the First Ministers' Meeting in Saskatoon. — Green Party Leader ELIZABETH MAY will meet with mayors from British Columbia and attend Parliament in person. THE ROOMS THAT MATTER — International Trade Minister MANINDER SIDHU is in Paris to attend the Organisation for Economic Co-operation and Development Ministerial Council Meeting, participate in meetings with WTO ministers and host a G7 trade ministers' meeting. — U.S. Commerce Secretary HOWARD LUTNICK will give the keynote speech at the U.S.-India Strategic Partnership Forum's Leadership Summit 2025. Second lady USHA VANCE will also sit down for a fireside chat. PROZONE For Pro subscribers, our latest policy newsletter: Made in America? Not so fast In other news for Pro readers: — White House plans to pull nomination for NASA administrator — Trump tells Congress what to chop in 22 percent budget slashing — 'Trump time' becomes a liability for president's tariff agenda PLAYBOOKERS Birthdays: HBD to former broadcaster KEVIN NEWMAN. Noted: Canada's embassy in Washington is hiring a senior foreign policy and diplomacy service officer who will focus on Congress. Salary: $126,662 (that's U.S. dollars). Movers and shakers: A new tranche of ministerial chief-of-staff announcements made the rounds over the weekend. → CAROLINE LEE (Environment Minister JULIE DABRUSIN) → SAVANNAH DEWOLFE (Justice Minister SEAN FRASER) → SETH PICKARD-TATTRIE (Crown-Indigenous Relations and Northern Affairs Minister REBECCA ALTY) → TANIA AMGHAR (Indigenous Services Minister MANDY GULL-MASTY). Lobby watch: Aecon Group posted two May meetings about infrastructure projects with PMO chief of staff MARCO MENDICINO … The Canadian Steel Producers Association reported meetings in May with International Trade Minister MANINDER SIDHU, Canadian ambo in D.C. KIRSTEN HILLMAN, Finance senior policy adviser MATHEW HALL and a group of senior bureaucrats at Public Services and Procurement Canada. Media mentions: CTV's 'Question Period' won the Canadian Screen Award for best political news program or series. Also among this year's winners: 'CTV National News with OMAR SACHEDINA' for best national newscast; CBC's ADRIENNE ARSENAULT for best national news anchor; Global National's JEFF SEMPLE for best national reporter; CBC Indigenous' JACKIE MCKAY for best local reporter; CTV's AVERY HAINES for best host or interviewer (news or information). — The Winnipeg Free Press' JEFF HAMILTON and KATRINA CLARKE received this year's Don McGillivray Award at the Canadian Association of Journalists' annual gala. Check out the rest of the winners. — CNN fact-checker DANIEL DALE is moving home to Canada, where he will remain with the network. Got a document to share? A birthday coming up? Send it all our way. TRIVIA Friday's answer: Hanlan's Point Beach in Toronto was recently commemorated on a stamp because it once hosted the 1971 Gay Day Picnic. Canada Post notes the event was 'considered the first major gathering of queer people in Canada and an early example of what we now know as Pride.' Props to ROB OLIPHANT, MARCEL MARCOTTE, JOHN PEPPER, ELIZABETH BURN, CHRIS RANDS, BOB GORDON, RAY DEL BIANCO, JUSTIN MARGOLIS, DARRYL DAMUDE, CID CABILLAN, ATUL SHARMA, MALCOLM MCKAY, ROBERT MCDOUGALL and JENN KEAY. Today's question: When did the Bank of Canada most recently leave its target rate unchanged at two consecutive announcements? Send your answer to canadaplaybook@ Canada Playbook would not happen without: Canada Editor Sue Allan, editor Willa Plank and POLITICO's Grace Maalouf.
Yahoo
30-05-2025
- Business
- Yahoo
Atlantic Canada bears brunt of interprovincial trade barriers but offers a path to change
Interprovincial trade barriers are a drain on productivity and economic prosperity in Canada and nowhere is it felt as much as in the four Atlantic provinces. Goods moving between the Atlantic provinces face trade costs equal to a tariff of approximately six per cent and services face an added cost of approximately 39 per cent, according to Unlocking Regional Growth: The Role of Internal Trade Costs in Atlantic Canada, a new research paper to be published by the Public Policy Forum. Compare this to the national averages for goods at about 1.4 per cent and services at about 16.8 per cent. Liberalizing trade within Canada has long been a challenge, but the rise of protectionism in the United States has set off alarm bells. All orders of government now recognize efforts to diversify trade must dramatically increase. That means boosting international trade and trade between provinces. The most striking aspect of the analysis is the scale of potential gains from full mutual recognition of credentials and the removal of internal trade barriers. These are not marginal shifts, but meaningful changes in provincial income levels and overall economic strength. Unlike tariffs between countries, interprovincial trade costs are not readily observable. They often take the form of non-tariff barriers that arise from differences in rules, regulations, standards, certifications, etc., from one jurisdiction to another. Overall, approximately $9.1 billion is annually traded between the four Atlantic provinces, which represented around 6.5 per cent of the region's economy in 2021. Of this, about $5.6 billion consists of goods, while $3.5 billion comes from services. The high trade cost for services in Atlantic Canada is stunning. It may explain why the services trade accounts for a smaller share of total trade in the region at approximately 40 per cent, compared with the national average of about 60 per cent. This disparity also underscores the importance of credential recognition and the ability for professionals and service providers to operate across provincial boundaries. The challenge for Canada is rooted in a highly decentralized federation that has created internal trade costs not by design, but as an unintended consequence of enacting different rules, regulations, standards and certifications across jurisdictions. It wasn't always this way. Before the early 1980s, internal and international trade volumes were roughly similar in Canada. But as international trade liberalization advanced, the share of economic activity from internal trade declined, while international trade increased. Today, internal trade accounts for about one-fifth of Canada's economy, with international trade nearly doubling that. In the wake of U.S. tariffs, Prime Minister Mark Carney indicated his government will work to lower interprovincial trade costs by eliminating regulatory barriers imposed by Ottawa and making major infrastructure investments. Unfortunately, previous national initiatives have failed to deliver impactful results. For example, the Canadian Free Trade Agreement in 2017 — then the most comprehensive effort to liberalize internal trade in our history — aimed to harmonize regulations across provinces, but it fell short of its lofty ambitions. Since then, several provinces have taken a different approach. One of Canada's more successful ways to reduce trade barriers involves liberalizing trade within a small group of provinces. Several recent memorandums of understanding between provinces have committed to the mutual recognition of credentials, regulations, standards, professional certifications, etc. Among the most ambitious regional trade agreements is the New West Partnership Trade Agreement with British Columbia, Alberta, Saskatchewan and, most recently, Manitoba. It can serve as a model for Atlantic Canada. Complacency is the biggest risk that Canada faces, not tariffs, says National Bank CEO The ripple effects of Trump's tariffs compound Canada's continuing economic headwinds Our research indicates that the gain in real gross domestic product (GDP) from reducing trade costs by even one per cent in Atlantic Canada will amount to roughly $200 million annually. Lowering costs by 2.3 per cent would create GDP gains of approximately $500 million. For a country in search of new economic opportunities, internal trade reform is a low-cost, high-impact policy lever, and Atlantic Canada could serve as an example for the country. Trevor Tombe is director of Fiscal and Economic Policy at the University of Calgary's School of Public Policy and a Fellow of the Public Policy Forum. He is releasing his new report at an economic forum in Halifax on June 5. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
