IMF report says billions in economic growth if internal trade barriers removed

Prime Minister Mark Carney highlighted Nova Scotia’s reduction of interprovincial trade barriers.

A new report says Canada’s economy would see billions in real GDP growth if all interprovincial trade barriers were eventually eliminated, with large gains particularly in Atlantic Canada.

The International Monetary Fund (IMF) says Canada’s economy could see a 6.8 per cent boost, or growth of $210 billion in real GDP, if all internal trade barriers were gradually removed “over the long run.”

The IMF report says Atlantic Canada could see even larger increases in real GDP per worker (39.5 per cent in Prince Edward Island, 26.6 per cent in New Brunswick, 23.7 per cent in Nova Scotia, and 15.4 per cent in Newfoundland and Labrador).

All areas of Canada would see economic growth, according to the report, but smaller and more remote areas (including Atlantic Canada and the northern territories) would see larger gains because of new access to larger markets.

Prime Minister Mark Carney referenced the report on Thursday at a meeting with Canada’s premiers in Ottawa, saying “more can be done” to remove internal trade barriers.

“The bottom line is we all agree that enabling nurses, teachers and trades people to work where they want, to take their skills where they’re in high demand, is right for them, and it’s right for Canada,” said Carney.

Prior to the start of this week’s meeting, Carney said the meeting with premiers would focus “on what we can control” in the U.S. trade war.

Carney made specific mention of Nova Scotia Premier Tim Houston and Ontario Premier Doug Ford on Thursday for eliminating interprovincial trade barriers.

Nova Scotia’s Progressive Conservative government introduced the “Making Business Easier Act” last September. Houston said the legislation would speed up approvals for businesses across several sectors and modernize government processes.

“A number of you have already made significant progress, I look to you Doug, Tim, particularly, and others… significant progress in reducing interprovincial trade barriers,” said Carney. “But we all know more can be done.”

On Wednesday, the Canadian Federation of Independent Business gave Nova Scotia, Ontario, and Alberta a grade of A for reducing government red tape for businesses. P.E.I. was given a C grade in the report, while New Brunswick received a C-.