Skip to main content
Open this photo in gallery:

B.C. Premier David Eby speaks during a news conference in Vancouver on Jan. 7.ETHAN CAIRNS/The Canadian Press

B.C. Premier David Eby has backed down on proposed legislation that would have given his government unprecedented powers to respond to U.S. trade threats, acknowledging critics who said his tariff measures bill was undemocratic.

Mr. Eby announced on Friday that Bill 7, the Economic Stabilization (Tariff Response) Act, will remain before the legislature to address issues such as interprovincial trade barriers. However, the government is withdrawing the section that would have allowed the cabinet to amend or to override provincial laws and regulations, and to skirt the authority of the legislature, all in the name of “addressing challenges, or anticipated challenges, to British Columbia arising from the actions of a foreign jurisdiction.”

That section drew public criticism from business groups and opposition politicians. The government also faced pressure from members of its trade and economic security task force, an advisory body made up of leaders from business, labour and First Nations. Mr. Eby said that criticism, in particular, led him to backtrack.

“Much as I would like to be perfect, I’m not,” Mr. Eby told reporters. “We didn’t get the balance right on this one.”

The proposed bill, if passed into law, will still provide measures designed to respond to the U.S.-Canada trade war. It enables the government to strip away interprovincial trade barriers, and to limit eligibility for government procurement contracts to B.C. or Canadian contractors. It will also allow the province to impose tolls on U.S commercial trucks bound for Alaska, which B.C. says is a potential retaliatory tactic that will only be used if the trade war escalates.

U.S. President Donald Trump has announced a series of tariff actions, starting with a threatened 25-per-cent tariff on Canadian and Mexican goods, that was then amended to provide a lower 10-per-cent levy for energy products, critical minerals and potash. Some additional products were later given a temporary reprieve, but Mr. Trump now says that automobiles and auto parts imported to the U.S. will face 25-per-cent tariffs starting Thursday.

The ever-changing trade landscape with the U.S., B.C.’s largest trading partner, still requires extraordinary powers to allow the government to respond quickly, Mr. Eby argued.

He said he intends to consult with stakeholders to develop another piece of legislation that would give his government the authority he said it needs, but this time with built-in guardrails to protect democratic principles. That bill may not be ready until next fall.

“We do need this authority,” he said. “If there’s a chance for us to retool this and ensure that the safeguards are in place to make people feel comfortable that there’s democratic and legislative oversight of these incredibly important provisions, then we will do so.”

The NDP’s narrow majority after last fall’s election led to a partnership agreement with the two-member Green caucus, and the Greens took some credit on Friday for the changes to the bill. “While we’ve pushed for and seen meaningful progress with Bill 7 – such as the repeal of Part 4 – it remains a work in progress,” said Rob Botterell, the Greens’ attorney-general critic, in a statement.

BC Conservative leader John Rustad, leader of the official opposition, said his party will continue to oppose Bill 7.

“From our perspective, the entire bill is flawed,” he said in an interview. He said provisions that allow for the collection of personal information, or the potential for the government to bring in broad road tolls, are troubling.

“David Eby has proven himself to be a dictator in more than one occasion – he doesn’t like the legislature, he doesn’t like democracy,” Mr. Rustad said. “If he has this kind of authority, it will be abused.”

Follow related authors and topics

Interact with The Globe