(Toronto) A large majority of Canada’s small and medium-sized businesses (SMEs) believe the country’s governments should remove interprovincial barriers to trade in goods like alcohol and meat, services and labor, the Canadian Federation of Independent Business (CFIB) said Monday.
In the 2023 edition of its report on Interprovincial-Territorial Cooperation in Canada, the CFIB states that 88% of small business owners believe it is important for governments to prioritize removing barriers that impede domestic trade.
For example, companies want professional licenses and accreditations to be valid in all jurisdictions, the association says.
The companies surveyed also said they face cross-provincial restrictions on the sale of certain foods, such as meat and cheese, and the sale of alcohol.
In her opinion, the complexity of sales tax structures also poses a problem when selling outside of her province.
A “top nuisance” for businesses is the inability to ship alcoholic beverages across provincial borders, either in person or by direct mail to consumers, the CFIB found in its report, adding that more than three-quarters of business owners believe that Canadians should do so may order Canadian alcoholic beverages directly from any province or territory.
“If progress on this front has stalled, despite the efforts of multiple groups and organizations, this is in part due to long-standing differences between provincial and territorial policy and regulatory goals,” the report said.
Eight provinces allow residents to ship alcohol across borders, according to the CFIB, but only one province — Manitoba — is “completely open” to cross-border alcohol shipments to consumers. Nova Scotia, British Columbia and Saskatchewan now allow certain products, such as wine or spirits, to be shipped direct to consumers from all jurisdictions.
CFIB has awarded grades to all provinces and territories for their progress in reducing trade barriers. Manitoba received the top grade of A-, followed by Alberta of B+.
Quebec ranked last on the CFIB list with a “D” grade. She pointed out that western provinces tended to have higher ratings, in part due to the New West Partnership Trade Agreement. According to the CFIB, this regional trade agreement has helped streamline regulations and standards in British Columbia, Alberta, Saskatchewan and Manitoba.
It also helped increase competition and reduce costs, she said.
The association recommended that governments across Canada “expeditiously adopt a mutual recognition agreement that encompasses all federal, provincial and territorial regulatory measures that impose requirements on the sale or use of goods and services.”
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