QUESTION PERIOD — Industry
Interprovincial Trade
May 22, 2024
Senator Gold, I want to talk about internal trade barriers in Canada. Last month, Budget 2024 announced the government’s intention to launch the first-ever Canadian survey on interprovincial trade to engage Canadian businesses on the challenges they face when buying, selling and investing across provincial and territorial borders.
Senator Gold, is it still the government’s intention to launch these consultations next month? How long will these consultations last, and when can we expect concrete action on eliminating or reducing some of our interprovincial trade barriers?
It seems that Canadians have been discussing this issue forever. In 2016, the Standing Senate Committee on Banking, Commerce and the Economy released a comprehensive report entitled Tear Down These Walls: Dismantling Canada’s Internal Trade Barriers. Even back then, the report provided policy guidance on areas to focus on. Action is required now.
You are quite right, senator; this is an issue. Even before the Senate debated it, this matter was much debated in the hallways of constitutional law classes across this country. Those of us who have been around can remember, even in the pre‑Charter days, that despite some of the promises of our Constitution of 1867, we still have barriers between provinces that are causing inefficiencies in our economy.
The Canadian survey on interprovincial trade is an important part of the federal action plan to strengthen internal trade. I do not have a specific date as to when the survey and consultations will begin, but an announcement will be made when they do.
This is an important step forward, but it is not the only step. The government has already taken substantial action to reduce the barriers to interprovincial trade, including the removal and streamlining of one third of all federal exemptions in the Canadian Free Trade Agreement, resulting in the removal of 14 exemptions related to procurement that will provide Canadian businesses with more opportunities.
One specific barrier that comes to mind is in Canada’s truck transportation sector. Last week, a report from the Macdonald-Laurier Institute explained that a patchwork of provincial regulations increases the direct cost of shipping goods across provincial lines, and contributes to broader economic inefficiencies. The authors argue in favour of adopting mutual recognition agreements, or MRAs. Will the government work to adopt MRAs?
The government is committed to working with the provinces and territories to ensure that goods, services and workers move seamlessly across this country by providing the mutual recognition of regulatory standards and eliminating unnecessary red tape. The government will announce further progress to align the regulatory environment across the country in due course.
