Prime Minister, premiers discuss how to improve interprovincial trade in face of tariffs

Glacier FarmMedia—Canada’s Premiers and Prime Minister say it’s time to reduce barriers to interprovincial trade as U.S. tariffs take effect and threaten Canadian agri-food exports.

Prime Minister Justin Trudeau met with Canada’s premiers Wednesday to discuss ways to strengthen Canada’s domestic economy.

“All First Ministers agreed that now is the time to take meaningful action to further liberalize and support the Canadian market so that goods, services and workers can move freely,” the ministers said in a statement yesterday.

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The discussions could lead to easier transport of Canadian-made goods across the country.

“We must ensure that all Canadians have access to Canadian-made goods, no matter where they are in the country,” the ministers said.

How do barriers affect agriculture?

Interprovincial trade barriers have long been a matter of debate and inter-government wrangling. Barriers can cover everything from product specifications to building and construction codes and professional and trade codes.

The COVID-19 pandemic re-energized the conversation, as supply chain woes dogged businesses across the country. For instance, the Canadian Food Inspection Agency temporarily allowed for inter-provincial trade of meat processed at non-federal plants provided there was a proven shortage of meat.

Manitoba’s then agriculture minster Blaine Pedersen said the “stop-gap” measure didn’t address the real issue of restrictions on interprovincial trade.

Ontario’s agriculture department also said it had “on numerous occasions, appealed to the federal government to remove interprovincial trade barriers, particularly as they relate to meat and meat products.”

The Canadian Federation of Agriculture has called inconsistencies between federal and provincial meat processing rules one of the “largest obstacles to interprovincial or domestic trade,” its website says.

Barriers coming down

In late February, the federal government announced it would remove down 20 out of 39 exceptions to the Canadian Free Trade Agreement (CFTA). These related mainly to government procurement. The federal government said this would allow businesses greater opportunity to compete across the country.

Wednesday’s meeting continued discussions over how to reduce restrictions.

The First Ministers agreed on the need for better workforce mobility and transferrable credentials. “Whether relocating for family reasons or pursuing job opportunities elsewhere, workers should be free to do what they are trained to do and contribute to the Canadian economy.”

The Prime Minister and premiers directed Committee on Internal Trade to work with the Forum of Labour Ministers to develop “develop a service standard of 30 days or better to get people working faster, and provide a plan for Canada-wide credential recognition.”

Many of the attending Premiers also agreed on a commitment to allow direct-to-consumer sales for Canadian alcohol.