Opinion: Let’s uncork internal trade in Canada in time for the holiday season

A memo to Dominic LeBlanc, minister responsible for Canada-U.S. trade: While you’re patiently waiting for your phone to ring with an invitation to resume trade talks with the U.S., perhaps you could turn your attention to another part of your ministerial mandate that desperately needs attention — your responsibilities for internal trade and the One Canadian Economy.

If ever there were a time to eradicate barriers to internal trade in Canada, that time is now. And what a gift you could give to the Canadian economy if you get rid of them by Christmas.

Permit me a short recap of some points I’ve made in these pages over the past year. Internal trade is a big deal. Over $500 billion worth of goods and services move across provincial and territorial borders every year — equal to almost 20 per cent of Canada’s GDP. Last year, one-third of Canadian businesses participated in internal trade.

Our made-in-Canada internal trade imbroglio is being noticed internationally. Earlier this year, the IMF published a report that concluded that eliminating internal trade barriers could boost Canada’s GDP by nearly seven per cent — roughly $210 billion in today’s terms.

On the other hand, leaving these barriers in place represents the equivalent of a nine per cent tariff on internal trade flows. Recognizing the chaotic state of our trade relations with the U.S., the IMF concluded that “the prize is large. Turning 13 economies into one is no longer just an aspiration — it is an economic imperative.”

Perhaps we have been unable to galvanize sufficient public attention to this quest because its subject matter is comprised of some pretty dreary measures. Many internal trade barriers range from the arcane (differences in professional accreditations) to the absurd (conflicting provincial road transport regulations governing axle-spread limits and winter tire mandates).

However, one set of barriers has attracted attention in both Canada-U.S. trade talks and domestically. These are provincial liquor board practices that restrict the listing of out-of-province wines in our liquor stores. Let’s pour a glass of B.C. VQA and take a look.

First, a few facts and figures. There are presently 600 wineries in Canada with 306 in B.C. and 186 in Ontario. Ontario remains the largest producer of wines based on an annual harvest of 70,000 metric tonnes of grapes compared with B.C.’s 16,000 metric tonnes.

Over the past few decades, both provinces have successfully built quality wine industries around a common Vintner’s Quality Alliance (VQA) designation. Both have backed VQA with legislation and established provincial wine authorities to ensure standards are met and wines seeking VQA designation are, in fact, produced from 100 per cent Canadian grapes.