Nova Scotia Premier Tim Houston introduced legislation on Tuesday that aims to reduce trade barriers within Canada as the country stares down tariff threats from the United States.Darren Calabrese/The Canadian Press
Nova Scotia took a major step toward liberalizing trade with the rest of the country and making it easier for workers to relocate to the province, part of a groundswell of recent efforts to diversify the Canadian economy as it faces persistent U.S. tariff threats.
Premier Tim Houston tabled legislation on Tuesday that would remove red tape on out-of-province goods and allow Canadians from other jurisdictions to work in Nova Scotia without having to go through additional licensing.
However, those restrictions would only be lifted on goods and workers coming from provinces and territories that do the same.
“If it’s good enough for another province, it’ll be good enough for Nova Scotia because I trust other provinces and territories to have appropriate requirements that keep their citizens safe,” Mr. Houston said at a news conference.
“But it is a two-way street. It’s all contingent on other provinces and the federal government taking similar steps.”
The proposed legislation marks the most sweeping effort by a province to tackle interprovincial barriers since premiers pledged last month to remove restrictions that hinder the flow of goods and workers. Both federal and provincial leaders have emphasized the need to increase trade within Canada to offset economic damage from potential U.S. tariffs.
Bill 36, called the Free Trade and Mobility within Canada Act, stipulates that goods manufactured or produced in another province or territory, which have met regulatory standards for that jurisdiction, would not be subject to additional fees or testing by Nova Scotia.
Workers’ certifications and licences from other jurisdictions would also be recognized, making it easier for out-of-province service providers such as teachers and roofers to operate in Nova Scotia.
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The legislation would drop all of Nova Scotia’s 19 exceptions in the Canadian Free Trade Agreement for provinces and territories that do the same. The CFTA, signed by federal, provincial and territorial governments in 2017, aims to reduce internal trade barriers and regulatory differences between provinces and territories, but allows all jurisdictions to list any exceptions.
The Nova Scotia Premier first announced the province’s legislation last week at a campaign event for Ontario Progressive Conservative Leader Doug Ford. Mr. Ford is promising to consider similar legislation if he is re-elected on Thursday.
Mr. Houston said he contacted other premiers on Monday to tell them about the bill, and that many senior members of their governments have already responded with interest.
New Brunswick Premier Susan Holt said in a statement she has directed the civil service to go full steam ahead on reducing interprovincial trade barriers, but did not confirm whether she would follow suit with reciprocal legislation.
“There is a lot of good will and momentum from Canada’s premiers to work together on this and we hope to make Canadian goods and services move more freely across the country,” she said.
B.C. Minister of Jobs, Economic Development and Innovation Diana Gibson wouldn’t commit either. She said all options are on the table to reduce interprovincial trade barriers, including legislation if needed.
The focus on internal trade barriers is part of a larger strategy policy makers are taking to look for economic growth opportunities beyond Canada’s southern neighbour.
U.S. President Donald Trump said on Monday he’s moving ahead with 25-per-cent tariffs on nearly all goods from Mexico and Canada, saying the levies “are going forward on time and on schedule.” A 30-day reprieve will come to an end March 4.
As well, Mr. Trump has promised 25-per-cent tariffs on all imports of aluminum and steel, including from Canada, on March 12.
Mr. Houston said premiers are still working to avoid tariffs but are also preparing for a scenario where the U.S. makes good on its threats.
The push by the federal and provincial government to dismantle internal trade barriers isn’t expected to touch agricultural supply management, which includes provincial quotas for the production of eggs, dairy and poultry. Mr. Houston said the new legislation wouldn’t affect supply management because it’s a national system.
Internal Trade Minister Anita Anand announced on Friday that Ottawa will remove about half of federal exceptions in the CFTA, bringing the number down to 19.
Mr. Houston said the federal government should go “the rest of the way” and remove other restrictions it places on internal trade.
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The Premier cited a “foolish” example of a remaining barrier that requires meat pizza made in Nova Scotia to be federally inspected if sold to a neighbouring province such as New Brunswick.
While studies offer a range of estimates on the economic boost that would come from removing internal barriers, economists largely agree that eliminating them would be helpful.
The Committee on Internal Trade, made up of federal and provincial officials who supervise the implementation of the CFTA, is expected to meet on Friday in Toronto to discuss progress on reducing trade barriers.
The Atlantic Chamber of Commerce president Rhonda Tulk-Lane commended Nova Scotia for its leadership and urged other provinces to follow suit.
“However, as with any legislation,” she cautioned in a statement, “the details will be critical to its effectiveness.”
Ms. Tulk-Lane said Mr. Houston needs to continue engaging with business and industry leaders to ensure implementation is practical, fair and beneficial for all sectors and without unintended consequences.
The Canadian Federation of Independent Business said Nova Scotia’s bill proposes the largest step forward toward breaking down Canada’s internal trade barriers since the CFTA was signed.
“We have a real opportunity to fix a long-term challenge, but governments need to act now,” Duncan Robertson, CFIB’s director of legislative affairs for Nova Scotia, said in a statement. “Premiers have all the tools at their disposal. This shouldn’t be a drawn-out process.”