TORONTO, Oct. 23 /CNW/ - Interprovincial trade barriers remain a drag on
Canadian productivity and send an embarrassing message to international
investors, according to a study released today by the C.D. Howe Institute. To
reduce them, Ottawa and the provinces should follow the approach of the recent
BC-Alberta Trade, Investment and Labor Mobility Agreement (TILMA).
The study, A New Prescription: Can the BC-Alberta TILMA Resuscitate
Internal Trade in Canada?, is co-authored by Kathleen Macmillan, President of
the International Trade Policy Consultants Inc. and Patrick Grady, President,
Global Economics. They note that while some progress was made under the 1995
Agreement on Internal Trade (AIT), it lacks the teeth to force recalcitrant
provinces to tear down their remaining trade barriers. Regulatory overlap
remains a significant problem and important interprovincial barriers persist,
particularly in the food and agriculture sector and in financial services.
The strength of the TILMA model, they say, is that it presumes that all
measures fall within its scope unless explicitly excluded, which allows the
agreement to have a more profound impact on internal trade than any amount of
tinkering with the AIT could achieve. The TILMA approach, which puts the onus
on regulators to justify any exceptions to the common standard, holds great
hope for breaking the current deadlock, they conclude.
For the study go to <a href="http://www.cdhowe.org/pdf/backgrounder_106.pdf">http://www.cdhowe.org/pdf/backgrounder_106.pdf.</a>
For further information:
For further information: Kathleen Macmillan, International Trade Policy
Consultants, (613) 748-5246; Robin Banerjee, Policy Analyst, C.D. Howe
Institute, (416) 865-1904