The Saskatchewan NDP Caucus has just posted an appropriately critical description of TILMA followed by a catalogue of the Saskatchewan Party’s support for this agreement. The Saskatchewan Legislative Assembly will soon begin public consultations on TILMA, but the material posted makes it fairly clear that the governing NDP will not sign the agreement.
Read moreIt is good to see that the Alberta Urban Municipalities Association is paying attention to this issue: AUMA Wants Full Consultation on new Alberta-BC Trade Agreement Watch for upcoming public consultations on the recently signed Alberta-British Columbia Trade, Investment, and Labour Mobility Agreement (TILMA).
Read moreThe Ottawa Citizen endorsed TILMA on Tuesday. I drafted an op-ed in response to the editorial, but Larry Brown of NUPGE beat me to the punch with an excellent letter printed in yesterday’s Citizen. For posterity, my op-ed follows: What Internal Trade Barriers? The Ottawa Citizen has endorsed the Trade, Investment and Labour Mobility Agreement (TILMA) without specifying any of […]
Read moreBoth Erin Weir and I gave testimony to the Senate Committee on Banking, Trade and Commerce in the past 24 hours, and I think we made an impression by challenging their assumptions about “interprovincial trade barriers” and bogus “solutions” like TILMA. My testimony follows: Presentation to the Senate Committee on Banking, Trade and Commerce By Marc Lee, Senior Economist Canadian […]
Read moreLike so many commentators on this topic, Andrew Coyne attacks the inefficiency and absurdity of alleged “internal trade barriers†without actually naming any. He could presumably trot out the two or three usual suspects, but does he believe that Canada’s “economic union†depends upon the colour of margarine in Quebec? Coyne writes that, “Viewed strictly as a legal matter, the […]
Read moreMarc’s recent post prompted me to look at transcripts from the Senate hearings on “issues dealing with interprovincial barriers to trade.” The following passage caught my attention: The Chairman: Let me suggest something that tantalized me when I first looked at this question well over 30 years ago, and more recently — the economics of it. I think one of […]
Read moreAsking business whether to get rid of government regulations is much like asking a barber whether to get a haircut. Nevertheless, the Conference Board’s main (and only) evidence in projecting TILMA’s benefits for BC and Saskatchewan were surveys of business organizations and government departments. In our paper, Marc and I noted some serious problems with the BC survey as well […]
Read moreOut of the blue yesterday I got a call from the Chair of the Senate Committee on Banking, Trade and Commerce, Jerahmiel S. Grafstein. An honour, I suppose, because he was personally inviting me to testify before the committee on interprovincial trade barriers. I was somewhat caught by surprise and had no idea who he was (turns out he’s a […]
Read moreAs noted in December using 2002 figures, Saskatchewan imports more from its prospective TILMA partners than it exports to them. The 2003 figures are now available: Saskatchewan’s trade deficit with Alberta was $2.1 billion and its trade deficit with BC was $0.4 billion. Since there are currently no significant barriers to inter-provincial trade, signing TILMA would not significantly increase inter-provincial trade […]
Read moreAs Joe Kuchta points out, the Conference Board’s assessment of TILMA’s potential effects on Saskatchewan embodies the same basic flaws as its previous assessment for BC. Joe also notes that, like its predecessor, the Saskatchewan assessment features what appear to be arithmetic errors.
Read moreThe Canadian Football League’s season does not begin until June, but debate is already underway about TILMA’s potential effect on its franchises, most of which are for-profit businesses that receive government subsidies. The last federal budget proposed a new Canadian Heritage Sport Fund to promote three-down football, but also proposed to expand TILMA to more provinces. In response to my […]
Read moreToday, the Government of Saskatchewan initiated a process of legislative consultations on TILMA and released the Conference Board’s assessment of this agreement’s potential impact on Saskatchewan. This document is the sequel to the Conference Board’s BC assessment, which Marc and I critiqued on this blog and in our paper. I have not yet read through the 55-page document, but will […]
Read moreLarry Hubich has sent an open letter to the Premier of Saskatchewan on TILMA. The letter cites much of the Lee, Weir, Grady, and Shrybman material discussed on this blog.
Read moreToday’s Financial Post reports that Ontario’s Premier “is exploring the possibility of joining the B.C.-Alberta free trade initiative.†Specifically, it quotes him as saying, “what I have done is talked to [B.C. Premier] Gord Campbell and [former Alberta premier] Ralph Klein, in the past, and said, you guys seem to have done something which sounds good. I’m not sure the […]
Read moreOn March 30, I attended the federal government’s conference on “Internal Trade: Opportunities and Challenges,†which was hosted by Human Resources and Skills Development Canada and by Industry Canada. Other attendees included academics, federal and provincial civil servants, and representatives of business and professional organizations. The academic and policy people all agreed that the material costs of alleged inter-provincial barriers […]
Read moreLast week, the Sierra Legal Defence Fund published a legal analysis on the environment and TILMA. Below is an excerpt from the press release, and the full document is here. This is an important analysis as BC’s point man on the file, Colin Hansen, has been claiming that the environment has been set aside as a “legitimate objective”. April Fools’ […]
Read moreThis week, I am back home in Saskatchewan, where debate on TILMA is really heating up. (My location and time zone also explain why Andrew filled in for me on today’s Labour Force Survey.) Brad Wall leads the Saskatchewan Party (the renamed Conservatives) and hence the Official Opposition. While some TILMA proponents have withdrawn from the deeply flawed Conference Board […]
Read morePatrick Grady, a former senior Finance official and leading mainstream economist, has weighed in on the Conference Board’s estimate of TILMA’s economic benefits. He cites the paper that Marc and I wrote and reiterates the points first made on this blog. He also notes that the Conference Board’s own forecast of BC’s economic-growth rate does not seem to reflect its […]
Read moreThe Saskatchewan Urban Municipalities Association has rejected TILMA. P. S. – The paper that Marc and I wrote on TILMA is now available in French.
Read more“Balkanization of our national economic space . . . thicket of provincial barriers.” – Conference Board of Canada, Mission Possible, 2007 “Our federation has been a ‘mini global economy’ for decades. There are virtually no internal barriers to labour and capital mobility, and no tariff-like distortions on interprovincial trade.” – Robin Boadway, “National Tax Policy for an International Economy: Comments,” […]
Read moreThe Economist so fetishizes “free trade” that it eagerly swallows TILMA without bothering to do any fact-checking. The way this is framed below, you would think people in BC are cheering that they will finally be able to buy Alberta oil. As for evidence, the article points to the Fraser Institute, who has not done any research on the topic […]
Read moreBC’s Economic Development Minister Colin Hansen has been waving around at every opportunity a study by the Conference Board of Canada that allegedly demonstrate the benefits the deal will bring. When the report was finally released to the public this past January, Erin Weir and I were so shocked at how shabby the research was that we wrote a paper […]
Read moreAdvantage Canada is the “economic plan” released with November’s Economic and Fiscal Update. In reading through it yesterday, I was struck by its statements about a couple of “free trade” agreements. Trade, Investment and Labour Mobility Agreement (TILMA) Marc and I demonstrate that there are few tangible examples of trade barriers between provinces and no evidence that such barriers entail significant […]
Read moreThe following is intended to be a complete and accessible list of papers, but not articles, on TILMA. If I have missed anything, please link to it in a “comment.” Criticism of TILMA Gerlach, Loretta. Examining the Implications of TILMA for Saskatchewan. Regina: Canadian Centre for Policy Alternatives, 2006. Gould, Ellen. Asking for Trouble: The Trade, Investment and Labour Mobility […]
Read moreThe CCPA released two papers today on the Trade, Investment and Labour Mobility Agreement, one by Ellen Gould that looks at the potential risks posed by the deal’s sweeping language, and a second by myself and Erin Weir, on the contrived economic case made for TILMA. Both papers can be downloaded here. Below is the press release, which provides a […]
Read moreThis story below was the front page banner headline on Saturday’s Vancouver Sun. It is a pretty exciting thought that BC might seek to emulate California with aggressive emissions targets. And between the lines, there appears to be some backtracking with regard to the approval of two new coal-fired power plants (which would be the first in BC, and are […]
Read moreEllen Gould has noted that the Conference Board’s report projects gains for industries that are explicitly exempted from TILMA: utilities, energy, mining, forestry, and fishing. The Conference Board’s analysis was based on a “draft negotiators’ text” (see page 39). However, the actual agreement wholly or partly exempts the industries listed above (see pages 19-20 and 22). These exempt industries could conceivably still benefit from lower […]
Read moreThe Conference Board estimates that TILMA will add $4.8 billion to British Columbia’s economy. Even if one accepts the Conference Board’s assumptions, this figure should be $2.4 billion (as explained below). However, some of these assumptions are highly questionable. The Conference Board argues, “The commercial services and wholesale and retail trade industries will benefit from [TILMA]. Increased trade liberalization will […]
Read moreThe Government of British Columbia has finally released the Conference Board study projecting that TILMA will add $4.8 billion to the provincial economy. Seeing the study’s methodology (or lack thereof) makes this projection seem even sillier than Marc and I had suggested. The Conference Board “scored†eleven industries in seven regions on the following arbitrary scale of TILMA’s speculated impact […]
Read moreIt seems to me that, compared to an international free-trade agreement, TILMA provides none of the potential benefits (i.e. tariff reductions) and all of the costs (i.e. regulations harmonized to the lowest common denominator and businesses suing governments). As Marc noted below, the Government of BC claims that TILMA could add $4.8 billion to provincial GDP. A Government of Quebec […]
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