Federal Removal of Interprovincial Trade Barriers Another Usurpation of Power
The power-sharing arrangements between the federal and provincial levels of government are set in Canada's British North America Act 1867. They are brought forward in the 1982 patriated version which includes an amending formula and Charter of Rights and Freedoms but maintains all sections which disempower the people along with the federal-provincial power-sharing arrangements based on conditions of a time long past. These arrangements need modernizing to bring them on par with 21st century realities. Instead of putting the matter into the hands of an elected Constituent Assembly, federal and provincial levels of government use their positions of power and privilege to serve specific oligarchic interests, all in the name of high ideals.
For some time now, the elimination of interprovincial trade barriers has been a topic of intense discussion among political and economic elites. Today, under the pretext of reducing Canada's dependence on the United States, talk about facilitating east-west trade, diversifying trading partners, and so on, is once again being bandied about while arrangements are being made behind the backs of the people.
On
February 21, Minister of Transport and Internal Trade Anita
Anand,
"announced the upcoming removal of an additional 20 federal
exceptions
in the Canadian Free Trade Agreement (CFTA), reducing the number
of
federal exceptions from 39 to 19. The majority of exceptions
removed
relate to government procurement, providing Canadian businesses
greater
opportunity to compete across the country," a federal government
press
release says.
"This action builds on the federal
government’s demonstrated leadership in strengthening
commitments
under the CFTA. In July 2024, the Government of Canada announced
the
removal or narrowing of 17 of its CFTA exceptions. Together,
these
successive reviews represent the removal of 64 per cent of the
Government of Canada’s exceptions in the Agreement since it
launched in 2017," the press release says.
The
Government of
Canada "is encouraging all provinces and territories to take
similar
steps to reduce their own exceptions under the CFTA," the press
release
further states.[1]
The facts show that whatever measures are being taken have little, if anything, to do with the alleged national objectives which are spoken about.
Among these discussions about interprovincial trade barriers, one of the recommendations put forward by what are called "expert groups" such as those participating in the Public Policy Forum is: "We need to accelerate the 340 energy projects and 138 mining projects, with a combined value of $627 billion that are being built in Canada." The "expert groups" also talk about resurrecting the Energy East pipeline project, a 4,600 kilometre pipeline which would carry crude oil from Alberta to an export terminal in Saint John, and another project which would see a pipeline extended from northern Ontario to transport Alberta natural gas to the port of Grande-Anse in Saguenay, where an LNG liquefaction plant would be built. The Saguenay project has already been overwhelmingly rejected by the people of Quebec, largely because of the predictable damage to the natural environment as well as its harm to the well-being of the people.
In a press scrum at the Quebec National Assembly on February 5, Benoît Charrette, Minister of the Environment, the Fight Against Climate Change, Wildlife and Parks, affirmed that his government would be open to studying an improved version of the latter project and that the Coalition Avenir Québec (CAQ) had always had "a favourable prejudice towards it."
But people will no longer accept the project to make life easier for fossil fuel producers in the name of diversification. When it comes to defending the natural and social environment, No! Means No!
As for the 138 mining projects, most of them are for the extraction of critical minerals. Recently, the media were abuzz over Justin Trudeau's statement that the U.S. "wants our critical minerals," to which we can only reply: "No kidding, Justin!"
In 2020, the federal Liberal government signed, among other things, the "Canada-U.S. Joint Action Plan," followed by the "Roadmap for a Renewed U.S.-Canada Partnership on Critical Minerals." These agreements are fully in line with the 1956 Canada-U.S. Defence Production Sharing Agreement, which aims to develop an integrated "North American defence" supply chain, making Canada an integral part of the U.S. defence industrial base.
To clear up any ambiguity on this point, in January 2025, the U.S. Department of Defense (DoD) website carried a report which quotes Adam Burstein, a DoD official, saying "Secure sourcing of critical minerals is critical to the defense industrial base, which uses them to produce virtually every Defense Department system, from unmanned aerial systems and fighter jets to submarines." Burstein adds that the Defense Department is embarking on a five-year rare earth investment strategy to consolidate its domestic capacity, saying that there is only one operating rare earth mine currently in the United States and that the UK and Australia have been added to Canada as "domestic sources."
That says it all!
The fact that the Pentagon invests in critical minerals came to light last year when the people of western Quebec learned that the U.S. military was funding the Lomiko Metals graphite mine at La Loutre. Local communities strongly condemned U.S. interference in Quebec for military purposes and the fact that, for years, Lomiko Metals and the Quebec government had promoted the mine as essential to the energy transition and electrification of the transportation sector. They denounced this dishonest ploy. They said that they had been led to believe that the destruction of their natural environment was the price to pay for a transition to renewable energy to save the planet, when in fact the opposite is true: the mining project supports militarism that accelerates environmental destruction.
As for other "barriers" that could be targeted in this move, some have raised the supply management system for eggs, poultry and dairy products, which has always been in the sights of the oligarchs in the U.S.
People won't be fooled by this renewed neo-liberal offensive and increased integration into the U.S. war machine in the name of lofty ideals.
Note
1. Government of Canada's "Quick Facts"
- Last year, more than $530 billion worth of goods and services moved across provincial and territorial borders, representing almost 20 per cent of Canada’s gross domestic product.
- The Canadian Free Trade Agreement (CFTA) came into force on July 1, 2017, to reduce and eliminate barriers to the free movement of persons, goods, services, and investments within Canada and to establish an open efficient, and stable domestic market.
- The CFTA seeks to establish an open, efficient, and stable domestic market. The CFTA exceptions are portions of the agreement that can be taken by federal, provincial or territorial governments, to exclude an industry, sector, or legislation from the agreement. Canadian business and industry have expressed that these exceptions can hinder free trade by allowing for inconsistent rules, standards, and licensing requirements for goods, investments and services. Leaders, such as the Canadian Chamber of Commerce, the Business Council of Canada and the Canadian Federation of Independent Business, note that reducing the number of exceptions in the CFTA will help strengthen internal trade and support the productivity of Canada’s economy.
This article was published in
Volume 55
Number 2 - February 2025
Article Link:
https://cpcml.ca/Tmlm2025/Articles/M550026.HTM
Website: www.cpcml.ca Email: editor@cpcml.ca