Manitoba's premier says the Canadian federation is in a state of "confusion" and "disarray" over the division of powers between the federal and provincial governments, citing the standoff over the Trans Mountain pipeline and interprovincial trade barriers.

"I would say obviously we are in a state of not just confusion but disarray. I would say that we're losing opportunities for growth," Brian Pallister told host Vassy Kapelos in an interview airing today on CBC News Network's Power & Politics.

"I would say that the opportunities that we lose with internal barriers to trade in our country are in the billions of dollars and we need to address that."

Pallister said some estimate the cost to the Canadian economy of failing to build pipelines and rip down interprovincial trade barriers could be as high at $30 billion per year.

Recently, the Supreme Court of Canada shot down a challenge to interprovincial limits on alcohol sales — a decision many saw as reinforcing money-losing internal trade barriers.

Pallister said he is working with the other provincial governments to remove internal barriers to trade, but he wants to see premiers come together and "keep the pedal to the metal."

"Right now, we're seeing obvious examples, beer and pipelines, that show that we're not quite there yet and we need to make much more progress in terms of achieving our real potential in achieving economic prosperity for Canada's family," Pallister said.

The premier said that while the provinces have an important role to play in removing trade barriers, he'd also like to see the federal government step up.

"These are things which matter because obstacles remaining among our provinces on these and many other issues are cutting incomes of Canadians," he said.

'We're in a state of not just confusion, but disarray,' says Brian Pallister. 9:26

After months of disagreement between the federal government and his province over the imposition of a national price on carbon, Pallister signed on to the Pan-Canadian Framework on Clean Growth and Climate Change in February.

That plan requires provinces to impose a price of $10 per tonne of carbon this year, rising by $10 a year, each year, until it reaches $50 a year by 2022.

Pallister's government, however, has come up with its own plan: a flat carbon tax of $25 per tonne for this year, remaining at that level going forward. The federal government has said it will impose its carbon price on provinces that do not match it.

"We've got a made-in-Manitoba plan that works better for our economy but it works better for our environment, too. And we're prepared to be measured on that," he said.

"We're confident if the [federal government] want to try us, we'll win because though they have the right to impose a backstop, they do not have the right to tell us how to do our plan."

While the premier said he is prepared to take the federal government to court over his carbon pricing plan, he will not challenge Prime Minister Justin Trudeau's overall policy.

"We did commission expert advice, constitutional expert advice on this issue before we began the process of designing our plan, that said the feds do have the authority," he said.

Pallister said he is confident that, between investments being made through a $100 million conservation trust fund and the carbon tax, his province will be able to meet its climate goals.