It shouldn’t take weeks on end to copy the smart kid’s homework.
Six weeks ago, Nova Scotia Premier Tim Houston set the standard in tabling legislation to remove interprovincial trade barriers. Yet six weeks later, only Prince Edward Island Premier Rob Lantz has copied Houston’s homework and followed suit.
Canadians are rightly asking: What’s taking other premiers so long?
Ever since U.S. President Donald Trump threatened to impose massive tariffs on Canadian exports to the United States late last year, Canada’s first ministers have talked a good game about removing interprovincial trade barriers.
Some readers might be shocked to learn that Canada’s provinces can trade more freely with over a dozen other countries than they can with each other.
That’s because while Canada has comprehensive free trade agreements with scores of other countries, Canada’s domestic free trade agreement has more holes than a block of Swiss cheese. The Canada Free Trade Agreement, which governs domestic trade, has more than 400 carve-outs. That leaves trade within Canada’s borders a far cry away from free and fair. A study from the IMF suggests that Canada’s domestic free trade barriers are equivalent to a 21% tariff on goods traded within Canada’s borders. Given that 77% of Canada’s exports go to the United States, Trump’s threatened tariffs, which has since been acted upon, prompted Canada’s first ministers to declare that now is finally the time to achieve genuinely free and fair trade in Canada.
Yet five months after Trump first made his threats, only Houston and Lantz have acted on the domestic free trade front. Back in February, Houston tabled reciprocal trade legislation in the Nova Scotia Legislature. In essence, the legislation says that Nova Scotia will drop any and all trade barriers with another province if that province takes the same approach with Nova Scotia.
The bill does two key things. First, it says that any goods manufactured and produced in another province with reciprocal trade legislation in place will be treated by the Nova Scotia government the same as goods produced locally. Second, it says that any service providers that are properly licensed or certified in another province with reciprocal trade legislation in place will be recognized as licensed or certified in Nova Scotia.
This means that any fees on goods made in another province coming into Nova Scotia will be eliminated and any business providing services coming from another province can do so without having to get relicensed or recertified.
In terms of upping Canada’s game on domestic free trade, Houston’s legislation is nothing short of revolutionary. Houston tabled his legislation on Feb. 25.
Since then, only P.E.I. has tabled a similar piece of legislation.
Houston’s legislation has the potential to deliver genuine free trade in Canada without action from Ottawa. The reciprocal structure of the legislation means that any of Canada’s other provinces can table the same bill and achieve instant free trade and free movement in trade relations with Nova Scotia.
Why haven’t Canada’s eight other provinces acted?
There’s no sense in waiting around for Ottawa. Canada is currently in the midst of a federal election, which will last the rest of this month. And by the time a new government gets sworn in and new members get seated in the House of Commons, it could be late spring.
But Trump’s tariffs are here now.
Plus, it’s the provinces, not the feds, that need to tear down Canada’s domestic trade barriers. The provinces don’t need Ottawa. All they have to do is introduce and pass the same legislation Houston has tabled in Nova Scotia.
It’s time for Canada’s premiers to get serious. Studies have shown that the positive economic impact of eliminating Canada’s internal trade barriers could offset the negative impact of Trump’s tariffs.
If politicians want to protect Canadian jobs and Canadian economic growth, we need to be masters of our own house.
And that starts with tearing down interprovincial trade barriers.
Canada’s other premiers need to buckle up, get serious, and table Houston’s legislation in their provinces. It’s time to achieve real reciprocal free trade in Canada without waiting several more months hoping for Ottawa to take the lead.
Originally published here
