As the clocks ticks down to the United States imposing tariffs on Canada, experts are praising Greater Vancouver Board of Trade recommendations to lower trade barriers found in a report released Wednesday.
But even as B.C. looks to build what Premier David Eby calls a "coalition of the willing", he also acknowledged political uncertainties at the federal and provincial level complicate Canada's response.
The GVBOT report calls on provinces to: 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鈥檚 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.
"What鈥檚 good enough in one province should be good enough in all provinces 鈥� and provinces should work together to harmonize rules so that it鈥檚 not a 'race to the bottom,'" he said. "I (have) long been advocating for country-wide harmonization, from trade to labour standards to securities regulation and, of course building codes."
While federalism allows provinces to be 'laboratories' to study the effects of new policies, this "key advantage of federalism" comes with a trade-off, he added.
"Too many policy differences create a patchwork of different approaches, making it harder to do business. Persistent provincial disparities in regulating business ultimately reduce economic opportunities and limit economic growth."
Antweiler acknowledged the existence of vested local interests who want to avoid competition.
"But generally competition reduces prices and increases benefits to the public," he said. "So if some lose, that can be a good thing. Provincial governments can be overly concerned with protecting local businesses (and local jobs). Instead, they should focus on creating a level playing field for businesses. "
Ulrich Paschen, instructor at Kwantlen Polytechnic University's Melville School of Business, said these "very sensible" recommendations will help in the Canada-wide struggle to find customers if either widespread tariffs to the U.S. come into effect, or the threat continues.
"The inter-provincial trade barriers really do not make a lot of sense and the spotlight on them exposes the extent of the current maze of regulations," he said.
Paschen added an external threat to Canada鈥檚 economy might speed implementation.
"In normal times, I would see real possibilities of this type of initiative being bogged down in implementation, but right now, the urgency of Trump鈥檚 tariff and sovereignty threats would expose minimize resistance to these measures," he said.
Speaking outside the provincial legislature, Premier David Eby Wednesday afternoon said provincial ministers responsible for internal trade, including B.C.'s Jobs, Economic Development and Innovation Minister Diane Gibson, will meet later this week to discuss improvements to Canadian Free Trade Agreement.
"I'm hopeful we will come out with some significant movement on this," he said, adding that B.C. continues to push for mutual recognition of good and services with a "limited list of exceptions where necessary, but ideally none."
Eby added it is time to act like a country when it comes to economics, saying provincial bureaucrats have reached out to counterparts in Nova Scotia to learn more about their approach. Nova Scotia has legislation which would allow the province to enter agreements with another province or broader agreements as part of a Coalition of the Willing, he said.
Antweiler said "ample scope for improvement" exists.
"Western provinces have made progress through their New West Partnership Trade Agreement," he said. "That鈥檚 a solid template to expand upon, and in particular with respect to Ontario and Quebec."
But this process is unfolding against a backdrop of a leadership turmoil. Federal Liberals are choosing the person who will eventually become Canada's new prime minister. Ontario is in the midst of a provincial election. Andrew Furey and Dennis King recently resigned as premiers of Newfoundland and Labrador and Prince Edward Island respectively.
Eby acknowledged those personnel changes.
"I'm looking over my shoulder a little bit," he said, jokingly. "Honestly, a lot of premiers are going missing right now," he said. "The election cycles and the federal government leadership race definitely took a toll on our ability to present a united front as a country."
He added that these transitions and turnovers lead to the loss of institutional memory.
"Members are starting new at the table and all these other challenges," he said. "It's not helpful, but it is reality."
