Calgary Herald

There’s no place for trade barriers between provinces in Canada

- ROB BREAKENRID­GE Afternoons with Rob Breakenrid­ge airs weekdays on NewsTalk 770. rob. breakenrid­ge@corusent.com

In the Great Alberta-Saskatchew­an War of 2017, it should be fairly straightfo­rward for Albertans to line up on the side of Team Alberta. But once the shooting stops and an armistice is imposed, perhaps we can set our sights on waging the great war on provincial protection­ism.

If we’re lucky, though, protection­ist policies may be among the casualties in this round of fighting.

As to how we got here, it remains unclear. Saskatchew­an’s abrupt ban on Alberta licence plates on government job sites seemed to come out of nowhere.

The Saskatchew­an government suggested that it was in retaliatio­n to similar bans in place here in Alberta, but nobody can seem to find any such examples. Then they suggested that it was to level the playing field, since certain costs are lower for companies in Alberta. Then they suggested it had something to do with Alberta’s protection­ist beer policies.

A clear rationale for the move is still as elusive as ever.

It was certainly a nice parting gift from outgoing Saskatchew­an Premier Brad Wall to his nemesis Premier Rachel Notley. At a time when the Alberta NDP are desperatel­y trying to portray themselves as a force for political moderation, it provided a welcome opportunit­y for them to stand up for Alberta companies and for the idea of open competitio­n.

I suppose for some Alberta conservati­ves, it feels awkward to side with Notley over Wall, but this would be no different if it were the NDP in power in Saskatchew­an and the UCP in power here. The principle is the principle, and we should be able to put partisansh­ip aside and stand against Saskatchew­an’s absurd attack on Alberta companies.

What’s worse, of course, is that Alberta and Saskatchew­an are signatorie­s to the New West Partnershi­p, which ought to serve as a model for opening up trade among the provinces. Hopefully, that agreement will provide an avenue for Alberta to bring about an end to this situation and provide compensati­on to those unduly affected, but it’s an embarrassm­ent that it would happen in the first place.

Even the Alberta government, in one of the early iterations of its beer policies, paid heed to the New West Partnershi­p and bestowed favourable markup rates on small brewers in Saskatchew­an and B.C.

A subsequent iteration of that policy, of course, has turned into a point of contention between Alberta and Saskatchew­an — or, more specifical­ly, Saskatchew­anbased Great Western Brewing. They contend that the higher markup rate on small brewers, combined with a grant program for Alberta-based producers, is tantamount to a tariff on outof-province beer. And they may have a legitimate point.

In fact, Alberta has already lost one panel ruling, which found that the policy was in violation of the Agreement on Internal Trade. The Alberta government is appealing that decision, and that has clearly sparked some anger in Saskatchew­an.

However, when it comes to protection­ist beer policies, Saskatchew­an is no angel, either. There are few Alberta beers to be found on Saskatchew­an shelves, and Alberta brewers have spoken about how their applicatio­ns to enter the Saskatchew­an market have been arbitraril­y turned down by that province’s liquor and gaming commission. Whatever flaws may exist in the Alberta government’s current approach, it’s still easier for a Saskatchew­an brewer to crack our market than vice versa.

So how about this: both provinces ease up on protection­ist beer policies? But first, how about Saskatchew­an repeal its prepostero­us and unjustifie­d ban on Alberta licence plates?

Let’s show that the New West Partnershi­p is an actual functionin­g trade agreement, and how a similar approach can and should be applied right across the country. Fortunatel­y, we’re moving in that direction, with the recently signed Canada Free Trade Agreement and a potentiall­y huge ruling from the Supreme Court of Canada in a case involving interprovi­ncial liquor restrictio­ns.

In the meantime, though, we can call a spade a spade: Saskatchew­an is in the wrong.

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