Premiers discuss growing trade dispute

Manitoba Premier Greg Selinger and Saskatchewan’s Brad Wall discussed a growing trade dispute Tuesday that is affecting businesses ranging from construction companies to craft breweries.

The two premiers agreed a priority is a renewed national deal that will reduce trade and investment barriers across the country, Selinger said following the phone conversation.

“Premier Wall indicated to me he’d prefer to go to a situation where we reduce the number of barriers to trade for all provinces, and we committed to working together on that,” Selinger said.

Wall expressed a similar sentiment to reporters in Regina, but said Manitoba could address its concerns in the meantime by joining the New West Partnership — a regional trade pact between Saskatchewan, Alberta and British Columbia.

“We’ve had an open invitation for Manitoba to join the New West Partnership since the New West Partnership was created in 2010, and they consistently say no.”

Although the trade deal was worked out five years ago, it is only in recent weeks that Manitoba companies have faced barriers.

Saskatchewan recently announced that some of its Crown corporation contracts will only be open to companies in the partnership provinces.

Last week, Alberta changed its liquor prices so that craft beer from the partnership provinces is much less expensive than craft beer from elsewhere.

The latter move had one Winnipeg brewery pondering its future of selling in Alberta. Farmery Estate Brewery said the change means a pack of eight cans of its beer now costs about $ 4.50 more than similar beer from the other western provinces.

“We either have to eat some of the cost and make less ( profit) per case ... or, if we stay at that price level, we’re going to definitely see a decrease in sales,” said Farmery coowner Chris Warwaruk. “We just can’t compete at that price point.”

All provinces have committed to revamp the national trade deal — called the Agreement on Internal Trade — by next spring, and Wall and Selinger both said negotiations are ongoing.

The current agreement contains many exemptions, including Crown corporations. Wall said Manitoba takes advantage of that exemption, so it should not complain that Saskatchewan is now taking similar steps with businesses outside the New West Partnership.