Saskatchewan Premier Brad Wall calls out Ontario Premier regarding interprovincial trade

Countries around the world are engaging in freer trade.

On every single continent, tariffs are being curtailed, barriers are coming down while protectionist attitudes are being pushed aside in favour of economic policies that yield what economists call the "overall good."

It seems that Canada's provinces, however, have a long long way to go.

On Tuesday, Saskatchewan Premier Brad Wall called-out Ontario Premier Kathleen Wynne over her province's protectionism with regard to inter-provincial trade.

In an interview with the Globe and Mail — ahead of the annual premiers' conference this week in Prince Edward Island — Wall decried Ontario's infrastructure contract bidding rules that favour local firms over those in other provinces.

Wall says that if Canada's most populous province doesn't change its stance -- which he says gives Ontario firms a 10-per-cent advantage -- he'll be forced to retaliate.

"If we can’t get improvement on that front we are not going to be Boy Scouts about that in Saskatchewan," he said.

On Wednesday morning, Wynne tried to calm the waters saying that she's open to discussing arrangements that benefit all provinces and territories.

Not many people, however, are convinced. As recently as last month, Ontario Finance Minister Charles Sousa hinted that they're sticking to their guns.

"We have a number of sectors within the economy that are protected, and the strength of those sectors exist because of some of the processes we put in place," he told the Canadian Press.

"We don't want to jeopardize the livelihood of Ontario companies as well. So we've got to make certain that we're working fairly for all concerned."

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Trade between the provinces is expected to be a primary discussion point at this week's conference which officially began on Tuesday.

And the issue is much bigger than just access to infrastructure projects.

As recently chronicled in the Victoria Times Colonist, owners of B.C. wineries are unable to sell products directly to consumers in other provinces; labour mobility is restricted in that tradespeople and professionals have to be licensed, registered or certified in their new province; truck transport is stymied due to a lack of cohesive standards and regulations; and the movement of poultry and dairy products is strictly regulated.

The Canadian Manufacturers & Exporters association estimates that these sorts of internal barriers cost our economy about $14 billion a year in productivity.

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It's an issue that's been around a long time and continues to be a source consternation for many small businesses who are asking the premiers to make the issue a priority.

"When it comes to internal trade, specifically, the current system is outdated and imposes unnecessary barriers on small businesses," the CFIB said in a statement ahead of the P.E.I. conference.

"In many cases, it is often easier to trade overseas than it is to trade with other provinces within Canada. CFIB recommends provincial leaders improve inter-provincial trade by empowering their trade ministers to move forward on negotiating a more open market within Canada."

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The Federal government has also intervened.

As of late — even though it's strictly provincial jurisdiction — Industry Minister James Moore has been talking-up the issue.

Moore's office told Yahoo that the Minister didn't want to comment on the sniping between Wall and Wynne but referenced a document he penned earlier this month called "One Canada, One National Economy."

The report outlines two options for improving the so-called Agreement on Internal Trade (AIT), an agreement signed in 1995 which the current trade model is based one.

The first option calls for a normalizing of rules and regulations across jurisdictions and modernization of government procurement rules. The second option proposes a negotiation framework which allows provinces to exempt certain products or services for trade.

"Persistent barriers to internal trade, including regulatory differences, inconsistent standards, and restrictions on the free movement of people, goods and services, fragment our economy and put Canadian firms at a disadvantage. The result is a weaker Canadian economy, lost jobs, and a less united Canada," Moore said in the report.

"In 2017, we will celebrate Canada's 150th anniversary as a country. We owe it to Canadians to take action by breaking down the barriers to building a modern economy. Together we can achieve our common goal of one nation, one national economy."

With this latest row between the premiers, however, a new deal by 2017 doesn't seem like a realistic goal.

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