N.B. premier’s internal trade moves don’t touch industry protection

New Brunswick Premier Susan Holt’s recent efforts to eliminate interprovincial trade barriers have been met with cautious optimism. While she has signed memorandums of understanding with counterparts in Ontario and Newfoundland and Labrador, there is still a long way to go before true free trade is achieved.

Holt’s focus has been on areas such as government contracting and worker accreditation, rather than tackling the protectionist policies that shield major industries in New Brunswick from competition. Despite her bold rhetoric, her actual approach has been more measured.

The memorandums of understanding are not binding agreements, but rather declarations of intent to negotiate. While Ontario has pledged to eliminate all exemptions under the Canadian Free Trade Agreement, New Brunswick has only committed to working towards removing its exemptions as they apply to Ontario.

Major resource sectors, such as forestry and seafood processing, remain protected under current policies. For example, forestry companies licensed to cut wood on Crown land are required to sell that wood to mills within the province. The intention is to protect the integrated industry and ensure the maximum value is derived from harvested wood.

Similarly, seafood processing requirements could be put at risk if reciprocity is not achieved with other provinces. Premier Andrew Furey of Newfoundland and Labrador has made it clear that certain industries, such as seafood processing, are non-negotiable due to their importance to the province’s economy.

While Holt acknowledges the need to be cautious when it comes to protecting New Brunswick’s resources, she believes that progress is still being made. With the threat of U.S. tariffs looming, there is a political impetus to open up trade as much as possible.

However, the road to true interprovincial free trade is still a long one. As Ryan Manucha, a research fellow at the C.D. Howe Institute, points out, provinces have valid reasons for protecting their industries. The challenge lies in finding a balance between opening up trade and safeguarding local economies.

In conclusion, while Premier Holt’s efforts to eliminate interprovincial trade barriers are a step in the right direction, there is still much work to be done. It will require careful negotiation and consideration of the impact on local industries to achieve true free trade within Canada.