Alberta Separation Could Bring Dire Economic Consequences: Chamber Report

The Calgary Chamber of Commerce has released a report warning of dire economic consequences if Alberta were to separate from Canada. The study, commissioned by the chamber and conducted by University of Calgary economist Trevor Tombe, estimates trade costs would rise by five to eight percent.

This increase in trade costs could lead to job reductions of up to 175,000 in Alberta and an annual hit to the economy of up to $62 billion. The report also found that Alberta would face a $9-billion fiscal shortfall if it were to separate from Canada.

Closing this gap would require significant changes, including a 13 percent sales tax, a 10 percent corporate income tax hike, or a 40 percent cut in the transfers Alberta businesses and individuals receive.

The chamber has received support from several business CEOs who have signed an open letter warning of the economic consequences of separation. The letter notes that while Albertans can be proud of their identity, it is also important to prioritize relationships, opportunities, and stability that have contributed to the province's prosperity.