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http://www.lop.parl.gc.ca/Content/LOP/ResearchPublications/2010-25-e.htm

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Proposed Outline for the Background:

1.   Issue statement, a.k.a. problem definition

2.  Arguments:

-  Scope and impact: who is affected and how?
Internal trade barriers hurt consumers, discourage
investment and damage Canada's international
reputation as a place to do business.

-  Why now?

-  Jurisdiction/ consistency with existing legislation

-  Normative arguments – reference to basic values/ ethics

-  Political needs/ concerns

-  Consistency with other policy fields and commitments

-  Empirical arguments – impact, effects, costs,
administration

-  Connection to hot topics of globalization, innovation, etc.

3.  Theory behind interprovincial trade and arguments of the
supporters of the trade barriers

4.  Policy history and reference to other jurisdictions worldwide

5.  Loop back to why now? Why is it important?

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2015 Research paper by Canadian Federation of Independent Business identified some guiding principles for future trade agreements, however, noted several specific areas calling for immediate action - could be something we might want to narrow down on...

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Globe and Mail Article: Land O'Lakes Buttery Spread 

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Globe and Mail Article: Land O'Lakes Buttery Spread 

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Globe and Mail Article: Case study of Land O' Lakes Buttery Spread - Alberta v. Ontario

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Globe and Mail Article: Case study of Land O' Lakes Buttery Spread - Alberta v. Ontario

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This is one of two articles I will post on the issue of Butter Blends (when dairy is mixed with oil). Western provinces like this because of their ability to use oilseeds in its production. Ontario and Quebec have an interest in having a higher dairy content as there is a heavier concentration of dairy producers. In this case, Alberta was able to successfully argue that Ontario was not allowed to restrict the sales of these butter blends. The ruling in 2010 resulted in Ontario changing regulations that same year.

In the other article, Saskatchewan challenged Quebec on the exact same issue and that did not get a dispute resolution until 2014.

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MPA 802 - Canada's Internal Trade - Situation Report

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MPA 802 - Canada's Internal Trade - Meeting Agenda

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For review/discussion

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Interprovincial Trade - SME Profile - 2013 - has some good stats references

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Interesting article on legal aspect of barriers under Canadian Constitution:

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Excerpt from paper on Policy Cycles, specifically problem definition and evaluation

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Excerpt from paper on Policy Cycles, specifically problem definition and evaluation

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Not sure if this is helpful, but this is from a paper I wrote a few years ago when I used the Policy Cycle as a theoretical framework to analyze federal public sector management reforms. A lot of this comes from Les Pal (Carleton University) and William Dunn (University of Pittsburgh).

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On the issue of alcohol crossing provincial lines, there are really two SCC cases that matter within the last 95 years. In R v Comeau, which is currently being appealed by the Government of New Brunswick, NB liquor laws were struck down as unconstitutional under s. 121. This overturned the prevailing thinking that remained from a 1921 SCC decision, Gold Seal Limited v. Dominion Express Company, that interpreted s. 121 to only mean taxes and tariffs on goods (it was also during the temperance movement). In Comeau, the judge broadened the interpretation to include non-tariff barriers.

If Comeau is upheld in appeals, that calls into question a number of rules and regulations at the provincial-level. As the analysis below suggests, the legal community believes this will be overturned by higher courts. If not though, it opens up a pandora's box of issues...

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Folks, attached is a summary of procurement issues related to the AIT

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Fraser Institute - Nov. 2015
https://www.fraserinstitute.org/studies/toward-free-trade-in-canada-five-things-the-federal-government-can-do-to-open-our-internal-market

Canada can increase its global competitiveness by liberalizing interprovincial trade and commerce.

1. Strengthen the institutional framework of the Agreement on Internal Trade (AIT). The first focus should be on expanding the secretariat.

2. Implement policies that facilitate greater labour mobility between provinces and harmonize apprenticeship and training programs. Taking these steps will help deploy skilled workers when and where they are needed.

3. Create a single national system for corporate registration and reporting. Such a system will facilitate greater investment by foreign and domestic enterprises in the Canadian market and eliminate costly duplication.

4. Promote market access and regulatory coherence in provincial energy and environmental policies to help promote sustainable growth.

5. Encourage dairy exports and the establishment of a common Canadian market to enable Canada to benefit from growing global demand for dairy products.

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Just a link for now - possibly a lot of interesting information (with some infographics on international experience):
https://www.ic.gc.ca/eic/site/081.nsf/eng/h_00007.html

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Several reports and articles I have read highlight the need for a more active role for the federal government on issues related to reducing barriers to inter-provincial trade. A good point is noted that the provinces have an interest in currying favor via protectionism (i.e. political issues prevent practical solutions).

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I have included some sections of provincial and federal mandate letters that pertain to inter-provincial trade. Some points are more specific/relevant than others.

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Outlines the federal government's responsibility/jurisdiction over internal trade matters. Notes that the provinces put up barriers to gain local support (i.e. they have less interest in pan-Canadian trade.

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Our topic got a shout-out today (Sept. 21st) in the Globe. There is also mention of a federal government economic growth commission - would be great to track any information we can on that.

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Provides some thoughts from the perspective of businesses.

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Executive Summary has some great concise points + recommendations.

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Mandate Letter - Ont. Minister of Int. Gov. Affairs

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Mandate Letter - Ont. Minister of Int. Gov. Affairs

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Ontario seems to be the most focused province on removing barriers to internal trade.

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Mandate Letter - Ont. Minister of Economic Development, Employ., Infra. 

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Mandate Letter - Ont. Minister of Economic Development, Employ., Infra. 

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Theory that trade should be analyzed at the firm-level.

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Current estimates have the cost of internal trade barriers up to 7% of Canada's real GDP. That is a stupid amount of GDP.

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The Economist: The great provincial obstacle course

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The Economist: The great provincial obstacle course

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This is a good synopsis (in a couple of pages) of the overall issue regarding Canada's internal trade.

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Overview of the current litigation out of NB.

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The New Brunswick government is appealing a provincial court ruling that threw out provincial limits on imported alcohol from other provinces.

In an April 29 decision, provincial court Judge Ronald LeBlanc dismissed charges that retiree Gerard Comeau violated the New Brunswick Liquor Control Act by bringing 14 cases of beer and three bottles of alcohol into the province from Quebec.

LeBlanc ruled the New Brunswick importation limit of 12 pints of beer or one bottle of alcohol or wine was a violation of the Constitution's provisions for free trade between the provinces under Section 121.

On Friday, the Office of the Attorney General filed a notice of appeal with the New Brunswick Court of Appeal, asking for it hear the appeal, bypassing the Court of Queen's Bench as a court of appeal.

Errors in law alleged

The province contends that Leblanc made errors of law in his decision to dismiss the charge against Comeau.

In the notice of appeal filed with the court, the attorney general's office maintains those errors pertain to Section 121 of the Constitution Act and Section 134 of the New Brunswick Liquor Control Act.

Section 121 of the Constitution Act states: "All articles of the growth, produce or manufacture of any of the provinces shall, and from and after the Union, be admitted free into each of the other provinces."

The province alleges LeBlanc erred in law with his legal interpretation of Section 121 of the Constitution Act in the following ways:

By interpreting the section to have a meaning contrary to that determined by prior decisions of the Supreme Court of Canada, which are binding on him.

By concluding without evidence that previous decisions of the Supreme Court were rendered without the benefit of evidence before the trial judge.

By finding that placing Section 121 in the category of Revenues, Debts, Assets and Taxation in the Constitution Act is of no legal consequence to the determination of its meaning.

By giving Section 121 a meaning that is internally inconsistent and conflicts with Sections 91, 92, and 94 of the Constitution Act.

By finding Section 121 was drafted as an absolute free trade provision that constitutionally must be rigorously interpreted as such today.

Section 134 of the Liquor Control Act states people in New Brunswick may only have liquor purchased from the New Brunswick Liquor Corporation, except for the limits set out in regulations. The notice of appeal cites four alleged errors in law by LeBlanc pertaining to Section 134.

Contradictory legal interpretations of Section 134, by finding in paragraph 24 of his decision the section "does not prohibit the importation of liquor from outside the province" and the citing the contrary in paragraph 168.

By interpreting Section 134 as imposing a "prohibition from import" contrary to a legal interpretation of the same section by the New Brunswick Court of Appeal in another case.

By finding Section 134 is only triggered by alcohol that crosses the provincial boundary.

By failing to determine the legal significance of Comeau's decision not to challenge the constitutionality of the federal Importation of Intoxicating Liquors Act.

The attorney general is asking that its appeal be allowed and the dismissal of charges be reversed and Comeau be found guilty as charged on the basis of the agreed statement of facts entered during the trial.

Comeau's defence was backed by the Canadian Constitution Foundation. Before Comeau's trial began, the foundation indicated it expected the case to eventually end up before the Supreme Court of Canada.

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Border booze court ruling appealed by New Brunswick | CBC News

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The New Brunswick government is appealing a provincial court ruling that threw out provincial limits on imported alcohol from other provinces. In an April 29 decision , provincial court Judge Ronald LeBlanc dismissed charges that retiree Gerard Comeau violated the New Brunswick Liquor Control Act by bringing 14 cases of beer and three bottles of alcohol into the province from Quebec.

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A quick comparison to Australia, EU, Switzerland, and United States. Some of the identified issues could be explored for narrowing down on the topic. Found a good source. Lots of other ones were referring to the similar issues, but much more 'wordy'.

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Attached is a backgrounder piece that I have put together on interprovincial trade.  I track the issue from its legislative origin to current day.  I have made some reference to defining interprovincial trade barriers, as well as arguments for and against reducing those barriers.  Finally, the piece includes a summation the principles enshrined in the AIT, of the policy recommendations included in recent Federal Government positions, and those included in the summer's Senate report.

Please Note: I have included footnotes so that you can refer to the sources, if you wish. The material is not cited properly with adequate reference to various authors. This is just a sketched out piece and if we use it for anything public, it would need to be edited heavily in terms of citations.