OTTAWA, ON (May 16, 2024):
Regulatory barriers to interprovincial trade probably aren’t top of mind for most Canadians… but they should be.
Truck transportation is vital to interprovincial trade and the significant barriers posed by mismatched regulations can seriously hamper Canada’s overall productivity. In the simplest terms, we’re all a bit poorer because our governments are failing to take an easy policy win in streamlining regulations for truck transportation.
In Roadblocks ahead: Internal barriers to trade in Canada’s truck transportation sector, Ryan Manucha and Trevor Tombe estimate that eliminating the barriers facing the truck transportation sector would increase Canada’s aggregate real GDP by just over $1.6 billion per year, with all provinces and territories experiencing economic gains. Importantly, the biggest benefits would be felt where they are needed the most – in “have-not” provinces such as Nova Scotia, New Brunswick, and Prince Edward Island.
“We estimate that, overall, interprovincial barriers to trade in the truck transportation sector add an average of 8.3 percent to the cost of goods shipped,” Manucha and Tombe say in their report. “This figure indicates that this sector faces considerable barriers to trade.”
Thankfully, the authors say there is a quick and simple solution – for provincial and federal governments to use mutual recognition agreements (MRAs) under the Canadian Free Trade Agreement to alleviate the trade barriers.
“Canada can enhance its economic unity and unlock significant growth potential, making a strong case for regulatory reform as a catalyst for broader economic improvements,” Manucha and Tombe conclude.
“These changes have the potential… to contribute to a more equitable economic landscape across the provinces.”
To learn more, read the full paper here:
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Ryan Manucha is a leading expert on interprovincial trade in Canada.
Trevor Tombe is a Professor and Graduate Program Director at the University of Calgary’s Department of Economics and a Research Fellow at The School of Public Policy.
For further information, media are invited to contact:
Skander Belouizdad
Communications Officer
613-482-8327 x111
skander.belouizdad@macdonaldlaurier.ca
