HALIFAX: Canada’s productivity is lagging behind its G7 counterparts, and one in two small businesses say interprovincial trade barriers are part of the problem.
That’s according to the Canadian Federation of Independent Business (CFIB)’s latest State of Internal Trade report: Interprovincial Cooperation Report Card. CFIB is urging all levels of government in Atlantic Canada to take decisive action to eliminate internal trade barriers.
“Recent research has found that eliminating internal trade barriers could add $200 billion annually to Canada’s economy,” said Duncan Robertson, Senior Policy Analyst for Nova Scotia at CFIB. “Amid soaring business costs, inflationary pressures, high interest rates, and persistent labour shortages, the need to remove barriers is more urgent than ever.
“Thanks to Atlantic Canada’s geography and history of close partnership, the region is in a unique position to take down unnecessary barriers to free trade, expand choices for goods and services, secure supply chains, and make life more affordable for all Atlantic Canadians.” Robertson added.
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This year’s report card evaluates governments on their progress in three key areas: exceptions to the Canadian Free Trade Agreement (CFTA), select barriers to internal trade, and the implementation status of reconciliation agreements.
Additionally, a new bonus indicator has also been added this year to measure government leadership in the past year in areas beyond these categories.
“Grades are low for the Atlantic region and progress at removing trade barriers has been slow” said Robertson.
“While the region has shown some leadership via regional partnerships such as the Atlantic Trade and Procurement Partnership (ATPP) and the Atlantic Physician Registry, more needs to be done.”
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CFIB recommends governments across Atlantic Canada move to adopt mutual recognition.
This means, for example, that if a business meets health and safety standards in their home province, those standards should be recognized by any other province or territory.
“Why is it easier and cheaper to export food to neighbouring countries than to neighbouring provinces or territories? Governments should work actively towards removing barriers,” concluded Robertson.
For more information, read CFIB’s full Canada’s Interprovincial Cooperation Report Card.
