CFIB: REMOVING INTERNAL TRADE BARRIERS CAN BOOST OUR ECONOMY

Keyli Loeppky, Director of Alberta and Interprovincial Affairs for CFIB

OTTAWA – Canada’s productivity lags behind its G7 peers, and one in two small businesses say interprovincial trade barriers are part of the problem, according to the Canadian Federation of Independent Business’ (CFIB) latest State of Internal Trade report: Interprovincial Cooperation Report Card. CFIB is urging all levels of government to take decisive action to eliminate internal trade barriers.

“Recent research has shown that removing internal trade barriers could add $200 billion annually to the Canadian economy,” he said Keyli LoeppkyDirector of Alberta and Interprovincial Affairs for CFIB. “Amid rising business costs, inflationary pressures, high interest rates and persistent labour shortages, the need to remove barriers is more urgent than ever. This will increase choices for goods and services, secure supply chains and make life more affordable for all Canadians.”

This year’s report evaluates governments on their progress in three key areas: exemptions from the Canada Free Trade Agreement (CFTA), certain barriers to internal trade, and the implementation status of reconciliation agreements. In addition, a new bonus indicator has been added this year to measure the government’s leadership over the past year in areas outside of these categories. Overall grades range from disappointing Ds to commendable Bs and just one A-, with some individual area grades higher.

“Despite some positive steps, including recent efforts by the federal government to reduce trade barriers and improve data availability, the launch of the RCT online portal for Canadians to identify regulatory barriers, and the new Atlantic Provinces Technical Safety Agreement, overall progress has been minimal,” it said. Jairo YunisDirector for BC and Western Economic Policy for CFIB.

CFIB strongly encourages governments across Canada to quickly implement mutual recognition. This means, for example, that if a company meets the health and safety standards in its home province, those standards must be recognized by every other province or territory.

“Why is it easier and cheaper to export food to neighbouring countries than to neighbouring provinces or territories? We need to put ourselves out there and compete with the rest of the world instead of competing with each other,” Loeppky concluded. “Governments owe it to Canadians, who are currently experiencing an affordability crisis, to aim higher than mediocrity. To do this, governments need to remove barriers and move forward with mutual recognition.”

For more information, read CFIB’s full report on Canada’s Interprovincial Cooperation.