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This book explains why Canadians must rid themselves
of interprovincial trade barriers. Canada's provinces do almost
as much trade with each other as they do with the rest of the
world. But trade between the provinces is harder than with
foreign countries. We trouble our own house with an amazing
variety of barriers: professionals and tradespeople cannot move
freely and practice where they wish, regulation makes it hard for
investments to flow to where they are most needed, provincial
governments give contracts to local firms even though
out-of-province firms can do the job at a lower cost, Ottawa pays
the most generous UI to regions with the highest unemployment and
thereby encourages people to stay in parts of the country with
little promise. The effects of such barriers on the economy are
difficult to measure, which may be the reason that little has
been done about them. But Canadians cannot afford to ignore their
costs. The European Community is very close to the goal of
ensuring free trade among its members. Unless we unlock our
potential we may fall behind other countries and communities that
have recognized the importance of internal as well as external
free trade.
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