Frederic Serre
The Advocate

Farmers and agri-food groups across the country are being asked by the federal government to participate in national and regional consultations over the next several weeks as part of a review of interprovincial trade rules. The goal, government officials say, is to reduce federal barriers to interprovincial trade and improve labour mobility.

The consultations will help draft regulations under the Free Trade and Labour Mobility Act, which is part of the federal government’s One Canadian Economy legislation approved in June, in part in response to U.S. President Donald Trump’s controversial tariffs this year that have threatened Canadian national exports. The tariffs have also sparked interprovincial trade debates between Ottawa and provincial governments.

In February, the Trudeau government said it would remove 20 out of 39 exemptions to the Canadian Free Trade Agreement (CFTA) that were mainly related to government procurement. In March, Canada’s premiers agreed to reduce barriers, including those around direct-to-consumer alcohol sales. And recently, Manitoba signed economic co-operation agreements with New Brunswick, Saskatchewan, British Columbia and Prince Edward Island.

“Having uniformity and consistency in standards is key, and it is also important that these standards meet the standards our customers require as part of international trade agreements,” Manitoba Beef Producers general manager Carson Callum said in May after Manitoba tabled the Fair Trade in Canada Act.

“Removing regulatory barriers across provinces that impact efficiencies — such as transport regulations — are areas our sector feels are key areas of focus to improve interprovincial trade,” Callum said.

Economists and regulatory experts have pointed to Canada’s agriculture sector as one of the industries that may be most impacted by reduced barriers to interprovincial trade. This, in turn, could mean improved opportunities for the sector. However, agriculture is also one of the industries that may be most resistant to lowering trade barriers. 

Barriers to internal trade that impact the agriculture and agri-food sector include dairy quotas, trucking requirements, health and safety regulations, packaging and labelling requirements, business registration and professional licencing differences across provinces. The Canadian Agri-Food Policy Institute estimates these barriers cost the industry approximately $1.7 billion annually.

The Canadian Federation of Agriculture has identified differing provincial transportation regulations, and inconsistencies between provincial and federal inspections required at meat-processing facilities as the two largest barriers to interprovincial trade in the sector.