This document provides an overview of trade barriers between Canadian provinces. It discusses how removing interprovincial trade barriers could boost Canada's economy by $90 billion per year by increasing productivity. However, provinces have erected various barriers like licensing requirements and public procurement rules that favor local companies. The federal government aims to reduce barriers but provinces still pursue protectionist policies that work against free trade within Canada. Improving relations between levels of government and removing internal protectionism is key to growth.

1. Breaking down Trade
Barriers - Canada
BY: PAUL YOUNG, CPA, CGA
NOVEMBER 14, 2020

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Overview
• Analysis
• Issues

4. Overview
• This presentation will discuss trade between provinces and the
issue facing provinces in terms of breaking down barriers
• This presentation will also discuss provincial relations either with
the federal government or with other provinces.
• Inter provincial relations are at all-time low as provinces are
putting up barriers to trade.

5. GDP by Province and Debt Change

6. Manufacturing Sales by Province
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/201016/t003b-eng.htm

7. Productivity

8. Internal Trade by Province
Source – Government of Canada

9. Barriers to Trade for SMEs

10. Cost to the Economy
• The business group says internal barriers damage productivity and
competitiveness, harm Canada’s international reputation as a
place to do business, and cost the economy as much as 14 billion
Canadian dollars ($12.8 billion) a year.

11. Trade Barriers Competitive Pressures

12. East – West Pipelines

13. Internal and External Trade
Source - https://www.fraserinstitute.org/studies/achieving-the-four-day-
work-week-part-2-essays?utm_source=Media-
Releases&utm_campaign=Achieving-the-Four-Day-Work-Week-Part2-
Essays&utm_medium=Media&utm_content=Learn_More&utm_term=550

14. Internal Trade
Source - https://www.fraserinstitute.org/studies/achieving-the-four-day-work-week-part-2-essays?utm_source=Media-
Releases&utm_campaign=Achieving-the-Four-Day-Work-Week-Part2-
Essays&utm_medium=Media&utm_content=Learn_More&utm_term=550
For example, according to recent estimates, Canada’s overall economic productivity could increase by 3.8 per cent if our internal trade
barriers on goods were eliminated.
In other words, if our governments (including the federal and provincial governments) removed these trade barriers, Canada’s economy
would grow by an additional $90 billion per year—or more than $2,300 per person and more than $6,000 per household—which would
increase the possibility of a four-day work week.
A separate essay examines other national barriers meant to protect existing companies and firms from both domestic and foreign
competition. In Canada, these barriers and protections come in many forms including expensive licensing requirements, restrictions
on the nationality of investors, subsidies to established firms, privileged access to government contracts and outright monopoly grants.
Source - https://www.globenewswire.com/news-release/2020/11/12/2125297/0/en/Fraser-Institute-News-Release-Eliminating-
interprovincial-trade-barriers-would-help-economy-grow-by-more-than-6-000-per-household.html

15. Trudeau and Provincial Relations / Immigration
Refugees / Border
Trudeau’s tweet - https://globalnews.ca/news/3212041/justin-
trudeau-refugees-donald-trump-travel-ban/
1. YTD June 2018 - - https://www.canada.ca/en/immigration-
refugees-citizenship/services/refugees/asylum-claims.html
2. 2017 - https://www.canada.ca/en/immigration-refugees-
citizenship/services/refugees/asylum-claims-2017.html
3. Refugees -
https://www.slideshare.net/paulyoungcga/refugee-crisis-
canada-july-2018
In two years there has been over 30,000 arrests at the border
and you say there is no relation to Trudeau’s Tweet? -
https://debatepost.com/2017/08/16/alysum-seekers-demand-
more-money-and-housing-from-canadian-taxpayers/

16. Federal Government and
Equalization
• “The Globe and Mail first reported earlier this week that the
Liberal government quietly renewed the equalization formula in
its 2018 budget, so it will stay in its current form until 2024. But
Tom Osborne says it's frustrating N.L. is considered a "have"
province under that formula — despite its current fiscal
situation. "We've got a very large geography, one of the most
widely dispersed population in all of the country, we've got very
rural areas. So this province is expensive to maintain," said the
finance minister Friday. "When you look at other provinces with
smaller geographies and twice the population, that's not taken
into account," he added. ” -
https://www.cbc.ca/news/canada/newfoundland-
labrador/finance-minister-wants-new-equalization-rules-
1.4719209
• Equalization payments have long been a contentious issue
between the Canadian government and provinces.
• The payments are once again in the news
this week, after it came to light that the
formula for how the money is
distributed will stay the same until 2024.
• Source -
• Liberals hold 152 seats in areas that received
equalization
• Liberals are concerned about losing seats in
AB and SK as such focus is on their existing
areas to hold power after the next election

17. Blog – Provincial Relations
• http://www.cbc.ca/news/politics/trudeau-trans-mountain-alberta-british-columbia-1.452470
• Election 2015 Promise - http://www.cbc.ca/news/politics/justin-trudeau-s-majority-greeted-with-
optimism-by-provincial-premiers-1.3280093 “After nearly a decade of a prime minister notorious for
public tussles with premiers who challenged his policies, Canada's provincial leaders reacted Tuesday
to the electoral victory of a Liberal leader who has promised to work harmoniously to advance their
interests.
Here are the facts:
• Kinder Morgan Project is in limbo due to NDP BC stalling the building process - http://www.cbc.ca/news/business/pipeline-notley-horgan-1.4519530
• NF and PQ - http://www.macleans.ca/news/why-peace-wont-come-quickly-for-quebec-and-newfoundland-and-labrador/
• Manitoba was threaten by Trudeau if they did not sign the new accord - http://www.cbc.ca/news/canada/manitoba/funding-health-manitoba-1.4255391 -
Trudeau - http://www.cbc.ca/news/canada/manitoba/funding-health-manitoba-1.4255391
• Saskatchewan is standing up to Trudeau carbon tax grab - https://www.thestar.com/news/canada/2018/01/28/just-watch-me-new-saskatchewan-
premier-vows-to-fight-federal-carbon-tax.html
• Trudeau did not support East-West Pipeline - https://atlantic.ctvnews.ca/n-b-premier-makes-last-ditch-effort-to-revive-energy-east-pipeline-1.3597266
or https://globalnews.ca/news/3787809/brad-wall-federal-government-justin-trudeau-cancellation-energy-east-pipeline-equalization-payments/
• Climate Change - https://www.cbc.ca/news/politics/premiers-meeting-provinces-ford-trudeau-1.4746748
• Source - https://www.slideshare.net/paulyoungcga/internal-provincial-trade-barriers-canada-april-2017

18. Kinder Morgan
Canada is losing out to
FDI -
http://business.financialp
ost.com/news/economy/i
nvestment-outflow-from-
canada-already-
underway-in-real-time-
rbc-head
https://twitter.com/twitter/statuses/983454989820588033
Could it be BC wants more moneys from Ottawa?
https://www.theglobeandmail.com/news/british-columbia/bc-
officials-confirm-ottawas-last-minute-cancellation-of-child-
care-news-conference/article37983746/
There is no way a court challenge can happen in the next six
weeks.
I also cannot wait for Kinder Morgan to sue the Liberals under
NAFTA for not getting the project through the roadblocks.

19. Dominic Leblanc / Trade Barriers
@DLeBlancNB
https://www.canadianmanufacturing.com/exporting-and-importing/feds-remove-
regulatory-barriers-to-trade-hope-provinces-will-follow-suit-223034/
The faster we can get to a national building code, a standardized building code, the
better it will be for that whole sector to reduce costs and grow their businesses,”
This is rich because the issue has been protectionism by the provinces

20. BC Cider

21. Comments
• “But sources say negotiations hit a snag two weeks ago when Alberta’s government sought
exemptions to the deal. One source said Alberta is proposing an exemption that would
ensure at least 20 per cent of public procurement contracts go to local companies.” Source -
http://www.theglobeandmail.com/news/politics/alberta-seeks-exemption-in-provincial-
trade-deal-to-favour-local-firms/article30752429/
• “Finance Minister Cathy Bennett said Thursday she was disappointed Quebec asked the
federal government to not extend a loan guarantee for her province’s Muskrat Falls
hydroelectric project.”Source - http://globalnews.ca/news/3029610/newfoundland-and-
labrador-reminds-quebec-about-canadian-values-on-hydro-project/
• “New Brunswick’s premier says there’s still a strong need for the proposed Energy East
pipeline despite the federal government’s approval of two pipeline expansions in western
Canada.”Source - http://globalnews.ca/news/3106253/energy-east-still-needed-despite-
approval-for-western-pipelines-n-b-premier/

22. Summary
• COVID19
• The Prime Minister, Justin Trudeau, today announced the details of an investment of $1.5 billion in the Workforce Development Agreements
(WDAs) with provinces and territories. This investment will help Canadians in underrepresented groups and those in sectors that have been
hardest hit by the pandemic – such as construction, transportation, and hospitality – quickly access supports to re-enter the workforce. It
could include skills training, on-the-job training, employer-sponsored training, financial assistance and benefits, employment counselling
and services, and job opportunities. This funding is in addition to the $3.4 billion provided to provinces and territories in 2020-21 under the
WDAs and Labor Market Development Agreements (LMDAs). https://www.newswire.ca/news-releases/helping-canadians-develop-the-
skills-they-need-to-find-good-jobs-849836260.html
• Pandemic - https://www2.slideshare.net/paulyoungcga/management-of-a-pandemic-covid19-canada-and-the-world
• Economy will undertake a transformation - https://www2.slideshare.net/paulyoungcga/postsecondary-education-outcomes-canada
• Federal government needs to stop pushing more taxes and regulations on to the provinces, i.e. carbon tax and hikes to CPP
• Small Business - https://www2.slideshare.net/paulyoungcga/canada-small-business-survival-analysis-and-commentary
• All provinces need to remove all protectionist policies, i.e. labor mobility, product restriction, stances against natural resources
development
• Skills Development - https://www2.slideshare.net/paulyoungcga/how-best-to-manage-skills-and-education-for-the-world and Youth -
https://www2.slideshare.net/paulyoungcga/canada-youth-labor-market-october-2020
• Federal government needs to deliver on its’ infrastructure commitment including investments in ports.
• Getting Goods to Market – https://www2.slideshare.net/paulyoungcga/getting-goods-to-market-what-needs-to-happen-by-all-levels-of-
government
• Better management of Natural Resources - https://www2.slideshare.net/paulyoungcga/natural-resources-canada-how-best-to-get-goods-to-
market
• Federal government needs to build better relations with the provinces.
• https://www.cbc.ca/news/canada/toronto/ford-council-provincial-federal-transit-health-care-1.5367702