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  • CCPA in Europe for CETA speaking tour October 17, 2017
    On September 21, Canada and the European Union announced that the Comprehensive Economic and Trade Agreement (CETA), a controversial NAFTA-plus free trade deal initiated by the Harper government and signed by Prime Minister Trudeau in 2016, was now provisionally in force. In Europe, however, more than 20 countries have yet to officially ratify the deal, […]
    Canadian Centre for Policy Alternatives
  • Twelve year study of an inner-city neighbourhood October 12, 2017
    What does twelve years of community organizing look like for a North End Winnipeg neighbourhood?  Jessica Leigh survey's those years with the Dufferin community from a community development lens.  Read full report.
    Canadian Centre for Policy Alternatives
  • Losing your ID - even harder to recover when you have limited resources! October 10, 2017
    Ellen Smirl researched the barriers experienced by low-income Manitobans when faced with trying to replace lost, stolen, or never aquired idenfication forms. Read full report here.  
    Canadian Centre for Policy Alternatives
  • CCPA recommendations for a better North American trade model October 6, 2017
    The all-party House of Commons trade committee is consulting Canadians on their priorities for bilateral and trilateral North American trade in light of the current renegotiation of NAFTA. In the CCPA’s submission to this process, Scott Sinclair, Stuart Trew, and Hadrian Mertins-Kirkwood argue for a different kind of trading relationship that is inclusive, transformative, and […]
    Canadian Centre for Policy Alternatives
  • Ontario’s fair wage policy needs to be refreshed September 28, 2017
    The Ontario government is consulting on ways to modernize the province’s fair wage policy, which sets standards for wages and working conditions for government contract workers such as building cleaners, security guards, building trades and construction workers. The fair wage policy hasn’t been updated since 1995, but the labour market has changed dramatically since then. […]
    Canadian Centre for Policy Alternatives
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The Progressive Economics Forum

The Financial Crisis and Interprovincial Trade

In Saturday’s Globe, Gordon Campbell ridiculously presented eliminating inter-provincial barriers as a response to the global financial crisis. Although Marc beat me to the punch in replying, I have a few further thoughts.

Several months ago, TILMA boosters said that removing alleged barriers to labour mobility was particularly pressing given a “tight” labour market. Today, the same people say that removing barriers is particularly pressing given an economic downturn and rising unemployment. These contradictory arguments confirm that TILMA is a solution in search of a problem.

The notion of eliminating inter-provincial barriers as a response to the financial crisis reminds me of a point that J. K. Galbraith made in The Affluent Society: the economic losses caused by microeconomic inefficiencies are very small compared to those caused by macroeconomic problems. Even wildly excessive estimates of supposed inter-provincial barriers suggest that these cost 0.25% of GDP. Even the most conservative estimates of how much the financial crisis is reducing annual GDP relative to normal growth are at least ten times larger. Stimulating the overall economy is far more important than ironing out tiny inefficiencies.

The renewed attack on supposed inter-provincial barriers is especially bizarre because, this past summer, Quebec dismantled its famous restriction on coloured margarine and all Premiers agreed to mutual recognition of occupational credentials as well as financial penalties for AIT disputes.  It’s hard to imagine what “barriers” could remain. The Throne Speech’s tough talk on inter-provincial trade may well just position the federal government to claim credit for what provincial governments were already doing.

I think that there is an opportunity to counterattack on this front. Provincial opposition parties should expose governments that publicly rejected TILMA but are now introducing some of that deal’s worst features through the back door.

For example, during the 2007 provincial election, Dalton McGuinty wrote, “We will not sign an agreement that would lower or would allow for the lowering of environmental, labour, health and safety standards for Ontario workers.” But by agreeing to “mutual recognition of occupational credentials between all provinces and territories,” he is indeed committing to lower Ontario’s standards to permit the minimum standard maintained by any other province or territory.

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