Internal trade needs new rules
A comment attributed to Premier Brad Wall in announcing his recent cabinet shuffle was a stark reminder that domestic politics trumps good intentions, even when it comes to an avowed free trader.
Mr. Wall said that his new minister responsible for SaskBuilds, Gordon Wyant, will establish a new agency called Priority Saskatchewan to ensure that local companies are treated fairly in bidding for public or private sector projects in the province.
“We have been hearing growing concerns about some other provinces giving preferential treatment to their local companies, so we are going to make sure there is a level playing field, and Saskatchewan companies are not at a disadvantage,” Wall said.
What seems to be a protectionist response is somewhat of a surprise, coming from a premier who has championed the New West Partnership agreement that has created a $550-billion free trade zone that covers Saskatchewan, Alberta and British Columbia, and has advocated for the model to be adopted across the land.
However, faced with legitimate complaints from local companies about losing bids to competitors from provinces such as Ontario and Quebec with protectionist policies that prevent Saskatchewan companies from getting contracts, Mr. Wall seems ready to embark on a well-trodden path that has hurt Canada.
In this context, it’s welcome to see federal Industry Minister James Moore set to embark on a cross-country road trip to convince ordinary citizens, business leaders and provincial politicians alike of the merits of overhauling Canada’s 20-year-old Agreement on Internal Trade.
Rather than facilitate the movement of goods, services and workers across the land, this outdated agreement with its trade barriers and virtually unworkable dispute resolution mechanism is estimated to cost the Canadian economy $50 billion a year.
In a country that has signed more than 40 international free trade agreements since it cobbled together the 1994 interprovincial deal, it’s beyond ridiculous that shipping liquor and wine across provincial borders remains problematic, not to mention the barriers faced by professionals trying to exercise the charter right to mobility by moving to work in another province.
Even in the three westernmost provinces covered by the 2010 New West deal, it’s been just a few months since an agreement was struck to allow people who are relocating to bring to their new home province already registered vehicles (four years old or newer) without requiring a roadworthiness inspection.
Mr. Moore makes an interesting point in noting that when Canada signs the trade deal negotiated with the European Union, a business owner in Germany will have easier access to municipal and provincial government procurement contracts in some regions than would Canadians from elsewhere.
Let’s hope that Mr. Moore’s optimism is well founded about the willingness of governments of all stripes across Canada to strike a workable and sensible deal when they gather this summer in Manitoba. He has three months to get the premiers and others onside.
Mr. Wall was right when he pointed to the New West partnership as a model for all provinces to emulate to benefit all Canadians, even if his recent words seem to belie the commitment to the ideal.