Latest news with #CanadianFreeTradeAgreement
Yahoo
13-06-2025
- Business
- Yahoo
Jack Mintz: Don't expect big economic gains from lower interprovincial barriers
Canada is in an economic bind. U.S. tariffs on aluminum, steel, autos and non-CUSMA products aren't going away soon. U.S. President Donald Trump and his cabinet secretaries clearly like tariffs, both for the revenue they generate and for the boost they give critical U.S. industries. Canada now needs a Plan B to grow an economy that has stagnated for a decade. One approach is to strengthen the economy by removing interprovincial barriers to trade. The One Canadian Economy bill introduced last week will remove half of federal internal barriers and advance nation-building projects. The provinces are making new agreements to remove barriers. That's all good. Removing barriers to trade in goods and services will help put Canadian economic resources to more profitable use. The question is whether it will reap the $200 billion in economic gains that Prime Minister Mark Carney mentioned in his briefing on the new bill last week. Doubt that the gains will be large comes from a new paper by Jonathan Deslauriers, Robert Gagné and Jonathan Paré of HEC Montréal. Recent studies have estimated that the removal of interprovincial trade barriers would lead to a GDP gain of seven per cent, after accounting for transport costs and the distance between provinces. That work is innovative, but it does not identify which barriers have such a noticeable impact on GDP. It's certainly not trade in beer. The studies that generate such big numbers typically assume that, absent barriers and transport costs, provinces would all have the same split between imported and domestic goods. That's obviously wrong: consumers have different preferences, income and access to international markets. Taking such variables into account would make the estimated economic loss attributed to interprovincial barriers much smaller. So far, there hasn't been much correlation between reducing barriers and growing GDP. The 1994 Agreement on Internal Trade did not lead to a noticeable increase in interprovincial trade as a share of GDP. Nor did its successor, the 2017 Canadian Free Trade Agreement. In fact, we have seen the opposite: interprovincial trade fell from a quarter of GDP in 1984 to less than a fifth by 1999 and has remained relatively flat ever since. On the other hand, international trade, measured by exports plus imports, grew from half of GDP in 1989 to four-fifths in 2001, though it has since fallen back to about two-thirds, where it is today. Canadian businesses have found it more economic to trade with American regions than other provinces, despite requiring custom clearance and facing other hassles — though these became less burdensome with Canada-U.S. Free Trade starting in 1989 and NAFTA in 1994. Despite the border frictions that remain, international trade is much more important to Canada than interprovincial trade. One reason why is that although our internal agreements have dismantled some barriers they are not based on a general principle of mobility of goods, services, people and capital, as found in the European Union treaty. Instead, there are many agreed 'exceptions.' The general ones include taxation, Aboriginal policies, preserving water resources, providing social services and protecting language and culture. Each province also lists its own exceptions to existing or future measures. For example, many have maintained barriers to mobility for law professionals, licensed practical nurses, dental hygienists and social workers. In some cases, these barriers could be relaxed but in others, like law, training is partly specific to the province. Harmonizing trucking rules across provinces could boost GDP but differences in road and bridge structures limit what can be done. Even if trade barriers are removed, it is not hard to recreate them in other ways. After Alberta lowered mark-ups on Alberta-made craft beer but not 'imports' from other provinces, the courts ruled that the province had violated Section 121 of the Constitution Act, which prohibits custom duties and tariffs on goods coming from other provinces. (Full disclosure: I was an expert witness in that case on the winning side.) But the province could instead have favoured its own craft industry with tax incentives for investment and other costs. Other provinces, including B.C., Ontario, Nova Scotia and Quebec, have done that, either with concessionary excise tax rates or various tax incentives or grants. It's not exactly consistent with provinces signing new internal trade agreements. King has an easier job with throne speech than Carney We can't afford another lost decade Of course, if U.S. tariffs remain in place, our exports to the U.S. will fall and internal trade could rise. The auto industry currently exports 1.4 million autos to the United States, while Canadian consumers import over four-fifths of their autos from CUSMA partners or Europe and Asia. More internal trade will only happen, however, if Canadian businesses are competitive with goods and services imported from Asia, Europe and other regions, and they may not be without protectionist tariffs. If we really want to strengthen the Canadian economy, we'll get a bigger impact from deregulation, tax reform, resource development, infrastructure and other pro-competitive policies. Don't put too much faith in out-sized economic gains from removing selected interprovincial barriers.
Hamilton Spectator
09-06-2025
- Business
- Hamilton Spectator
Saskatchewan and Ontario remove trade barriers
While premiers met in Saskatoon last week, an agreement between Saskatchewan and Ontario to break down trade barriers was announced. Putting ink to paper, Saskatchewan Premier Scott Moe and Ontario Premier Doug Ford signed a Memorandum of Understanding for the two provinces to work on getting rid of roadblocks between the two provinces. 'Saskatchewan has long been a leader in reducing trade barriers,' said Trade and Export Minister Warren Kaeding. 'This MOU is the progress on internal trade that our country needs to remain competitive and resilient.' He explained that the two provinces will work together to improve the flow of goods, services, and labour mobility; recognize the importance of strengthening public safety and the integrity and role of our Crown corporations; and advance direct to consumer alcohol sales while working with other willing jurisdictions to do the same. 'We continue to see success in internal trade through our participation in the Canadian Free Trade Agreement (CFTA) and the New West Partnership Trade Agreement with British Columbia, Alberta, and Manitoba,' Kaeding said. According to statistics from 2021, total interprovincial trade between the two provinces amounted to $6.4 billion. 'Now is the time to take strong action to strengthen trade across Canada,' noted Moe. 'Our province remains committed to removing restrictive barriers that limit the flow of trade. Today's MOU between Saskatchewan and Ontario is just one of the ways we are unlocking the infinite potential that exists within our industries from coast to coast.' Trade makes up around 70 per cent of Saskatchewan's Gross Domestic Product, with the recent signing of the MOU seen as providing more stability when actions south of the border threaten change at a whim. 'With President Trump taking direct aim at Canada's economy, we need to do everything we can to protect Ontario and Canadian workers by super-charging our own internal trade opportunities,' Ford said. 'With both of us coming together today, we are helping Canada unlock up to $200 billion in gains for our economy, and we are showing everyone how all of us premiers are standing up for Canada like never before. Together, we are building a more competitive, more resilient and more self-reliant economy.' Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Economic Times
07-06-2025
- Business
- Economic Times
Canada tables 'One Canadian Economy' Bill to boost domestic trade and infrastructure
Prime Minister Mark Carney's government introduced Bill C-5, the "One Canadian Economy" bill, aiming to dismantle interprovincial trade barriers and expedite infrastructure project approvals. This initiative seeks to unify Canada's internal market, addressing trade tensions with the U.S. The bill targets federal obstacles to trade and labor mobility, potentially boosting the Canadian economy by $200 billion annually. Prime Minister Mark Carney's government has introduced Bill C-5 to dismantle interprovincial trade barriers, expedite major infrastructure projects and to boost domestic trade. It will unify Canada's internal market amid rising trade tensions with the US. (Image Credit: AP) Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Accelerating Nation-Building Projects Tired of too many ads? Remove Ads Responding to US Trade Pressures Legislative Outlook Prime Minister Mark Carney 's government has introduced Bill C-5 , the "One Canadian Economy" bill, to dismantle interprovincial trade barriers and expedite the approval of major infrastructure projects. This legislative move seeks to unify Canada 's fragmented internal market and strengthen its economy amid escalating trade tensions with the United was tabled after a first ministers' meeting in Saskatoon, during which Prime Minister Mark Carney , premiers, and territorial leaders discussed expediting major projects and interprovincial trade. The proposed legislation targets the elimination of federal obstacles to interprovincial trade and labor said that these internal barriers cost the Canadian economy approximately $200 billion annually. By aligning federal regulations with those of the provinces and territories, the bill will create a cohesive national market for the free movement of goods, services, and labor across Canada.'With the 'One Canadian Economy' bill, we are aligning federal rules and regulations with those from the provinces and territories, helping to create one market, not 13,' Carney said on Friday, June Canadian Chamber of Commerce supported the initiative, noting that while it may not entirely counteract the effects of a trade war with the US, it represents a significant step toward internal economic Holmes, the Chamber's chief of public policy, stated that eliminating exceptions to the Canadian Free Trade Agreement is a logical progression toward true free trade within addition to addressing trade barriers, the bill proposes a streamlined process for approving major infrastructure projects deemed of national interest. The government plans to establish a federal office dedicated to expediting project approvals, potentially reducing timelines from up to a decade to just two projects would include those in the energy, mining, and transportation sectors, provided they offer significant economic and environmental benefits, such as carbon emission reductions and support for Indigenous provincial governments' autonomy, Carney has assured that no projects will proceed without their some provinces, including Alberta and British Columbia, have expressed differing views on specific introduction of the "One Canadian Economy" bill comes in the wake of increased US tariffs on Canadian exports. Carney has labeled these tariffs as "unlawful" and emphasized the need for Canada to bolster its domestic approach includes engaging with the oil industry to balance environmental goals with economic have centered around supporting new pipelines and carbon capture initiatives, aiming to position Canada as an energy leader while reducing reliance on U.S. government wants to pass the "One Canadian Economy" bill before Parliament's summer recess, though the timeline remains tight. As a minority government, the Liberals will need to garner support from opposition parties to ensure the bill's outcome will significantly influence Canada's economic strategy and its ability to navigate current and future trade legislative effort represents a bold move toward unifying Canada's internal market and enhancing its economic sovereignty. If successful, it could pave the way for increased domestic trade, improved infrastructure, and a more resilient national economy.
Yahoo
06-06-2025
- Business
- Yahoo
Carney launches ‘One Canadian Economy' Act to unify trade, approvals
-- Prime Minister Mark Carney unveiled sweeping legislation Friday aimed at accelerating the approval of infrastructure projects and removing long-standing internal trade barriers, part of a broader effort to boost Canada's economic potential amid mounting global uncertainty. The One Canadian Economy Act, a centerpiece of the Carney government's pro-growth agenda, seeks to consolidate regulatory processes and create a unified domestic market across the national landscape. 'Canada's a country that used to build big things,' Carney said at a press conference. 'But in recent decades it's become too difficult to build in this country.' To address these concerns, the bill would cut federal project approval times from five years to two by creating a one-stop permitting office and applying a 'one-project, one-review' standard to infrastructure proposals. Projects deemed 'nation-building' by federal cabinet, such as railways, ports, pipelines, and transmission lines, would undergo streamlined assessments focused not on justification, but implementation. These proposals must satisfy at least some of five criteria, including economic benefit, Indigenous engagement, and contributions to climate goals, though officials stress these are considerations rather than strict thresholds. The new approach was partially galvanized by concerns over regulatory paralysis that has slowed Canada's ability to bring natural resources to global markets. 'When federal agencies have examined a new project, their immediate question has been: Why?' Carney said Friday. 'With this bill, we will instead ask ourselves: How?' The legislation also tackles internal trade barriers, which economists estimate cost tens of billions of dollars in lost productivity and economic output annually. A major provision of the bill would recognize provincial standards for goods, services and labor certification as meeting the federal benchmark, though actual interprovincial mobility will still require the cooperation of provincial governments. Conservative Leader Pierre Poilievre has expressed skepticism over the bill's broader impact, calling the internal trade components 'a small step.' 'It's baby steps when we needed a giant leap,' Poilievre said Friday, while suggesting provinces be offered cash incentives to dismantle remaining trade barriers. While some provinces have already commenced bilateral trade agreements, others remain hesitant. The federal government says its own contributions include the elimination of all exemptions to the Canadian Free Trade Agreement by July 1, with the broader hope that harmonization efforts will follow across jurisdictions. Related articles Carney launches 'One Canadian Economy' Act to unify trade, approvals US job growth in May tops forecasts, but Macquarie warns cracks are emerging Fed's Harker says rate cuts this year still possible
Toronto Sun
06-06-2025
- Business
- Toronto Sun
New federal bill aims to eliminate internal trade barriers
Published Jun 06, 2025 • 1 minute read Prime Minister Mark Carney introduces his new cabinet at Rideau Hall on Tuesday, May 13, 2025, in Ottawa. Photo by Adam Huras / Postmedia Network OTTAWA — The Liberal government has introduced legislation aimed at cutting down barriers to internal trade by recognizing provincial and territorial rules at the federal level. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Officials who briefed reporters this morning say the goal is to reduce the number of redundant standards across the country. They say that, for example, a company that produces washing machines that meet a provincial energy efficiency standard won't have to meet a separate federal standard to sell outside that province. The bill also looks to recognize provincial and territorial licensing and certification for some workers, so that someone licensed to work in one province is assumed to be licensed at the federal level. Prime Minister Mark Carney has promised to eliminate interprovincial trade barriers by Canada Day. The federal government says that, so far, it's removed almost 70 per cent of the exceptions it has imposed on the Canadian Free Trade Agreement. NHL Ontario Toronto & GTA Celebrity Ontario
