Canada Pushes for Common Market Amid US Trade Talks Collapse

The collapse of trade talks with the US has added urgency to reducing interprovincial barriers in Canada, but experts say it's not a simple fix. Efforts to boost trade have ramped up recently, including a meeting this week of federal, provincial, and territorial trade officials in Iqaluit. Ministers agreed that the suspension of negotiations means it's more critical than ever to strengthen the economy at home.

One area where progress has been made is in allowing direct-to-consumer alcohol sales across provincial boundaries. Nine provinces recently agreed to this, but even this type of progress shows the challenges of opening up sales. Some provinces have added extra charges and rules on top of what producers face in their home province.

Jeff Guignard, CEO of Wine Growers British Columbia, said that forcing B.C. wineries to register in other provinces just to mail wine there is 'bureaucratic nonsense.' He also noted that having to pay two wholesale markups is 'just lunacy.'

The potential benefits of simplifying domestic trade are substantial. The International Monetary Fund estimates that removing internal trade barriers could boost Canada's real GDP upwards of 7%, or about $210 billion, over the long term.