Federal Industry Ministry James Moore said the time is ripe to tear down “dumb” interprovincial trade barriers

Speaking to the London Chamber of Commerce Monday, Moore said a new flurry of international free trade agreements means many goods and services now flow more easily to foreign countries than between provinces in Canada.

“A kid in Brussels (Belgium) with a new mobile app has better access than a kid in Brandon, Manitoba.”

Moore said he is hopeful because provinces that have resisted the removable of international trade barriers, including British Columbia, Manitoba, Quebec and Nova Scotia – are now more amenable to talk.

“We now have a green light across the board in 2014...There is reason for optimism,” said Moore.

He said new Quebec premier Philippe Couilliard is anxious to strengthen economic ties with other provinces to promote federalism in his province.

He said BC premier Christy Clark's majority mandate, a new provincial government in Nova Scotia and the political woes of the Manitoba government have eroded opposition to eliminating interprovincial trade barriers.

Moore said Canada still has a patchwork of provincial regulations that discourage businesses from expanding across Canada.

For example he said every province has it own regulations governing coffee creamers – including size, specifications, and labeling – to protect local dairies from competition.

“All the little local dairies never become provincial or national in scope and don't have the expertise to take on the work and become an international company.”

He said the the Newfoundland government passed legislation “for cultural reasons” regulating the size of beer bottles, making them slightly wider and shorter, effectively shutting out competition from a new brewery in Halifax and other Canadian firms.

“They look like the tough guys standing up for the little local breweries. That's too tempting for politicians.”

Moore defended the federal government's decision not to give in to the Ford Motor Corporation's demands for government support to build a new engine plant in Windsor.

Speaking to the media, Moore said the auto sector is doing well but there is no benefit to outbidding the huge subsidies offered to manufacturers by Mexico and some US states.

“These investments have to make sense for taxpayers. We do not want want these investments at any cost,” said Moore.

hank.daniszewski@sunmedia.ca

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