Free the beer: time to open trade barriers within Canada.

If you follow politics on Parliament Hill closely, you may have heard of a new official Opposition position calling on our Liberal government to #freethebeer. Generally speaking, I am hearing widespread support for this policy from beer lovers and brewers from all parts of Canada. However, as the official Opposition critic for interprovincial trade, I would like to share why the “free the beer” policy is also very important for the Canadian economy.

Since my “free my grapes” private member’s bill that removed a Prohibition- era law banning the interprovincial movement of wine was passed by Parliament, only Manitoba, British Columbia and Nova Scotia have embraced the idea that free t rade in Canadian wine should not be a crime. After my bill was passed, the then-Conservative government also amended the Importation of Intoxicating Liquors Act to add craft beers and artisan spirits to the list. However, some provinces have other ideas, as was witnessed in New Brunswick, where Gerard Comeau was charged for transporting beer and spirits across the border with Quebec.

It is clear that many provinces remain stuck in the dark ages of protectionism, using regulatory red tape to create trade barriers. Fortunately for Comeau, Section 121 of the Constitution Act, 1867, clearly states, “All Articles of the Growth, Produce, or Manufacture of any one of the Provinces shall, from and after the Union, be admitted free into each of the other Provinces.” This simple, yet powerful clause makes it clear that the founders of Confederation i ntended Canada to be an economic union, not just a political one. Unfortunately, in 1921, the Supreme Court of Canada made a ruling that significantly narrowed its application, which until recently had gone unchallenged.

All that changed when a New Brunswick j udge, after hearing evidence regarding the original intent of Sec. 121, found Comeau not guilty. Regrettably, New Brunswick r ecently announced that it will be appealing the ruling. Many constitutional scholars have argued that given the large implications a restored Sec. 121 may have on our topheavy system of government regulation, this case will inevitably end up at the Supreme Court.

This why myself and my Conservative colleagues are asking the Liberal government to elevate the Comeau case to the Supreme Court for constitutional clarification now, as opposed to waiting for it to wind its way through the court system. This not only has the potential to free trade in beer and other forms of alcohol, it could also open up our internal economy for all Canadian producers of a whole host of different products. This includes farmers and other agricultural producers.

One other benefit in f avour of elevating t he Comeau decision to the Supreme Court speaks more directly to interprovincial trade barriers. Many of today’s internal trade blockades have existed for decades. Why do they exist? Since the Supreme Courts diminished Sec. 121 of our Constitution, various interest groups have, over time, effectively lobbied successive provincial governments of all political stripes to enact regulatory red tape that ties up competition and can help to maintain limited markets and in some cases even monopolies. In other situations, provincial governments will directly intervene in certain industries, largely for selfserving political considerations.

If t he Supreme Court does support the Comeau decision and recognizes that Canadian products were i ntended to move f reely between the provinces, it could have significant consequences.

Although it is difficult to assess the impact internal trade barriers have on our economy, one study pegged the value at $14 billion annually. I believe that anything we can do to help create jobs and grow our economy without adding more debt should be a priority of any government.

Most importantly, such a decision would mean that lobbyists and other influence-pedlars would no longer be able to hijack the debate and craft public policies designed only to serve their narrow special interests. Instead, the free movement of goods across provincial borders would be seen as a constitutional right guaranteed to all producers throughout the country. In other words, it would allow us to take politics out of the equation.

Having t he Supreme Court of Canada rule on Sec. 121 could be our greatest opportunity in a generation to open our borders and let Canadians trade with Canadians, just as the founders of Confederation intended. Write to your MP and tell them that you want to be part of a more open Canada and to help us “free the beer.”

IT IS CLEAR THAT MANY PROVINCES REMAIN STUCK IN THE DARK AGES .. USING REGULATORY RED TAPE TO CREATE TRADE BARRIERS.