Faster progress needed on removing interprovincial trade barriers: CFIB report

TORONTO — Doing business across provincial lines is starting to get easier but progress is slow, says the Canadian Federation of Independent Business.

In a report released Tuesday, the CFIB says it’s important for provinces and the federal government to remove barriers to interprovincial trade to improve productivity and boost the economy.

It says the vast majority of small business owners want governments to prioritize removing barriers, while a little over half of those surveyed say they’re losing productivity because of multiple sets of regulations.

There has been some recent progress, including the federal government removing eight procurement exemptions to the Canadian Free Trade Agreement this year and committing to removing an additional six by year-end.

The federal government has also launched an internal trade data hub, while the government body tasked with implementing the Canadian Free Trade Agreement has set up an online portal for Canadians to identify potential regulatory barriers to trade.

But the CFIB says there have still been no tangible improvements on removing alcohol trade barriers, or much in the way of reducing obstacles to doing business.

“Despite some positive steps … overall progress has been minimal,” said Jairo Yunis, director for B.C. and western economic policy for the CFIB, in a statement.

There was a small step recently to at least return to the status quo on alcohol shipments after Alberta imposed more restrictions earlier this year.

In January, Alberta’s liquor sales regulator said it would no longer accept shipments of B.C. wines unless B.C. wineries stopped direct sales to Alberta consumers. Last week, the provinces announced they had agreed on a path that would see direct sales resume.

Overall, the report ranks Manitoba as leading the way on interprovincial trade, while Quebec ranked last.

Businesses looking to expand operations across borders within Canada experience several challenges, depending on the province or territory, the CFIB says. All provinces and the federal government have implemented what’s needed on first aid kit standards, for example, while all but the feds have done it on life jackets.

It gets spottier on categories like certifying entry-level truck drivers, with only about half of provinces done, while on construction codes, the CFIB says all provinces are working on it but none are complete.

The CFIB recommends governments across Canada quickly adopt a mutual recognition agreement covering all regulations on the sale or use of all goods and services.

This report by The Canadian Press was first published July 23, 2024.

The Canadian Press