The minister representing B.C. at a meeting to reduce inter-provincial trade barriers said Friday (Feb. 28) said the meeting made "more substantive and dramatic movement" than in past meetings.
"I really am confident that you will see substantive changes in the movement of business services that allows that economic activity to grow and we will see that GDP impact coming," B.C.'s Jobs Minister Diane Gibson said.
Gibson added that the meeting with her provincial counterparts made "substantive" changes to the exceptions of goods and services in the Canadian Free Trade Agreement, mutual recognition of good, services and labour credentials among provinces and labour mobility generally across Canada. Gibson said B.C. has agreed to remove exceptions around investments in fisheries and government procurement without offering specifics.
"B.C. is not alone in having made commitments today and we are really feeling everybody's meeting this moment," she said.
The agreed upon measures will now go before Canada's First Ministers for final approval.
Gibson said prior to her meeting that she and her provincial counterparts were getting ready to meet during a "moment of crisis."
"We are in uncharted territory with...the tariff threats that are coming from the Trump and the Republican administration and we are there to meet that crisis," she said. (We) know that job losses are already being experienced both sides of the border and we are here in the spirit of of trying unlock economic development."
Heading into the meeting, Gibson said thatB.C. would like to see what she called "significant progress on really, really reducing those exemptions" in the Canada Free Trade Agreement.
She had earlier praised the federal government's Feb. 21 decision to reduce its own list of exemptions to 19 from 39.
The second main issue concerns the mutual recognition of goods, services and labour credentials. Gibson Thursday echoed comments from Premier David Eby that B.C. is committed to mutual recognition, adding that B.C. has been at the forefront of this issue, even before the tariff threats.
Nova Scotia earlier tabled legislation that would ease mutual recognition. If similar legislation is required for B.C. to follow that lead, it would do so, Gibson said.
Friday's meeting happened just days before the tabling of the provincial budget.
A report from the Greater Vancouver Board of Trade released this week calls on provinces to implement several measures: mutually recognize all goods, services and labour credentials; universalize the sale of products; and nationalize direct-to-consumer beer and alcohol sales. The report also calls on provinces to reduce red tape and forego non-tariff barriers for inter-provincial infrastructure.
The report indicates such a commitment would streamline projects, boost investment confidence and foster cooperation.
"Canada’s internal trade barriers present significant challenges to economic growth, business competitiveness, and consumer choice," it reads. "Despite the existence of the Canadian Free Trade Agreement (CFTA), which was implemented in 2017 to reduce inter-provincial trade restrictions, businesses still face regulatory fragmentation, inconsistent standards, and sector-specific barriers."
Primary concerns for B.C.'s businesses according to the report, are various quotas and the cost and availability of transportation. The report notes removing barriers could boost provincial GDP by 2.8 per cent and Canada's GDP by four per cent.
Werner Antweiler, associate professor at UBC's Sauder School of Business and chair in international trade policy, said the recommendations are sensible and align with the general desire to remove such barriers.
But other voices are more skeptical. "In my view the inter-provincial trade barrier discussion is somewhat overblown," Alex Hemingway, senior economist and public finance policy analyst with BC Policy Solutions, said. "But there is certainly action to be taken in areas like recognition of professional credentials and it's good to look where regulatory harmonization makes sense. But it can't be a race to the bottom and in some cases regulatory differentiation between provinces may actually be wise. Trucking regulations for B.C. mountain passes may be different from the prairies for good reason."
