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| EST. READ TIME 2 MIN.No matter who wins the U.S. presidential election, Canada should prioritize freer interprovincial trade and labour mobility
The Growing Imperative to Create a More Integrated Internal Economy in Canada
- Regardless of the outcome of the 2024 US presidential election, it is likely that protectionist pressures will intensify in that country, thereby further threatening Canada’s exports to its largest trading partner. The imperative to create a truly integrated internal market will therefore be even more pressing.
- There are relatively large economic benefits to Canadians from eliminating or even reducing interprovincial barriers to trade, capital flows, and labour mobility.
- There are two main legal instruments to reduce existing interprovincial barriers to trade and labour mobility. One is the Canadian Free Trade Agreement (CFTA) which currently includes all 13 provinces and territories. A second is the New West Partnership Trade Agreement (NWPTA) to which the provinces of British Columbia, Alberta, Saskatchewan and Manitoba are signatories.
- The main advantage of using the CFTA is that it mitigates the risk of trade and investment diversion. The disadvantage is that it is more difficult to negotiate trade agreements encompassing a larger number of trade partners than it is to add individual partners to a regional trade agreement.
- Whether barriers are reduced by deepening the existing CFTA or expanding and deepening the NWTPA, a major step to a more integrated domestic economy would be for members of both trade agreements to implement a policy of “mutual recognition.” This would mean that an item of commerce (either a good or a service) that meets the regulatory requirements of a member province or territory is deemed to automatically satisfy the regulatory requirements of other member provinces or territories.
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Steven Globerman
Senior Fellow and Addington Chair in Measurement, Fraser Institute
Mr. Steven Globerman is a Senior Fellow and Addington Chair in Measurement at the Fraser Institute. Previously, he held tenuredappointments at Simon Fraser University and York University and has been a visiting professor at the University of California, University of British Columbia, Stockholm School of Economics, Copenhagen School of Business, and the Helsinki School of Economics.He has published more than 200 articles and monographs and is the author of the book The Impacts of 9/11 on Canada-U.S. Trade as well as a textbook on international business management. In the early 1990s, he was responsible for coordinating Fraser Institute research on the North American Free Trade Agreement.In addition, Mr. Globerman has served as a researcher for two Canadian Royal Commissions on the economy as well as a research advisor to Investment Canada on the subject of foreign direct investment. He has also hosted management seminars for policymakers across North America and Asia.Mr. Globerman was a founding member of the Association for Cultural Economics and is currently a member of the American and Canadian Economics Associations, the Academy of International Business, and the Academy of Management.He earned his BA in economics from Brooklyn College, his MA from the University of California, Los Angeles, and his PhD from New York University.… Read more Read Less…
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