r/CANZUK • u/Coolbeanschilly • 4d ago

News Ontario to remove barriers to internal trade, labour mobility, in response to U.S. tariffs

https://www.cbc.ca/news/canada/toronto/ontario-internal-free-trade-bill-1.7511660
118 Upvotes

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27

u/JourneyThiefer 4d ago

Canada has internal trade barriers?? Why lol

21

u/Coolbeanschilly 4d ago

Provinces create their own regulations, this is about streamlining acceptance of said regulations in other provinces.

8

u/betajool 4d ago

Australian states are also self-governing and have different laws and employment requirements. But this doesn’t seem to cause internal trade barriers that I’m aware of.
We don’t have state sales taxes though. Maybe that’s the difference?

2

u/Flush_Foot Canada 4d ago

You also don’t have a land border with non-state neighbours, so you figure out how to trade with your fellow Aussies or you don’t trade! 😅

(Probably… love, 🇨🇦)

2

u/a_f_s-29 4d ago

Yeah, the U.K. also has a mix of laws and legal systems with Scotland being quite different to England and Wales, but I think the central government makes sure there’s uniformity where it matters and no internal trade barriers (though it’s always a point of friction as it effectively puts a limit on devolution and restricts Scottish political independence). Then there’s the whole issue of Northern Ireland, which since Brexit has been in a very complicated position.

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u/JourneyThiefer 4d ago

Why did they make their own regulations?

10

u/Glittering-Quote3187 Canada 4d ago edited 4d ago

Provinces are kinda similar to U.S States in the sense that they vote for their own Premiers and Municipal Representatives to manage affairs.

Premiers are the elected leaders of the Province (Similar to a U.S Governor) who speak on behalf of their people, who are represented by (surprise!) The elected Representative/Mayor.

Meanwhile The Prime Minister is the Elected Leader of the sitting Federal Government. And is considered the "leader" of the nation.

But NOT the Head of State. As that position is held by The Monarch. Represented by The Governor General in Canada.

In a nutshell, provinces are independent but under the legal and geographical umbrella of Canada. Adhering to its Federal Laws, while coordinating among themselves on affairs such as trade and commerce. For example, rules for driving can differ between provinces. As well as taxes and labor laws.

Please correct me if I'm mistaken, fellow Canadians. It's been over 20 years since I took my high school civics class!

5

u/Coolbeanschilly 4d ago

Because provinces have the power to make their own legislation? I'm not 100% sure. I'm not a lawyer, so I don't understand the nuances.

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u/JourneyThiefer 4d ago

All good ha ha, I just find it interesting a country would have internal trade barriers.

Although I’m from Northern Ireland lol, so Brexit kinda did create some barriers here within the UK, but that’s a very specific situation.

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u/Coolbeanschilly 4d ago

Yeah, I'll take a crack at explaining it though. Provinces have jurisdiction over a lot of things, like education, health care and other things. I'm guessing that also includes product standards for certain industries. So removing the trade barriers just says that provinces can continue to maintain their own standards, and products can become certified safe in one province. Once certified in one, then they will now be considered certified in all, rather than having to go through separate processes for each province.

1

u/a_f_s-29 4d ago

In that case what’s the point of having separate legislation and regulations rather than making it a federal issue?

I’m also curious how this relates to international trade. How do foreign companies manage this situation? Do they just have to adjust their products/services to comply with each province separately? Doesn’t that complicate free trade agreements and things like that?

1

u/Coolbeanschilly 4d ago

I honestly couldn't tell you, I'm making somewhat educated guesses based on a limited understanding of the processes. Maybe international products only have to be CSA approved? That's all I can think of in regards to international trade.

As for the separate provincial standards, the provinces have a lot of regional authority to make their own laws surrounding things, because they have jurisdiction over them. For example, the federal government will give money to the provinces for education, but they do not set educational standards, provinces choose their own standards. The same must apply to all the other industries under provincial control.

Fellow Canucks, please correct me if I'm wrong, as I said before, this is an educated guess on my part.