Trading Up
Ottawa’s new trade vision prioritizes domestic supply chains and the Maritimes must be ready to receive if it's to be a full partner in Canada's shifting federation
Avert your gaze.
Stop looking over the fence at our big hulking neighbours picking fights with themselves and with the world.
Stop fixating on the rapid rise of worrisome tech and decidedly unsocial media.
Stop scaring ourselves at venturing out into an increasingly violent and divided world.
Focus on what we can control, which for Maritimers, lies fully and completely within our own borders.
In a speech to students at the University of Ottawa on Wednesday evening, Prime Minister Mark Carney called what’s happening in the world a rupture.
“Your future will not be the same as my past,” he said, noting no smooth transitions await Canadians as we enter the 21st century’s second quarter.
“Many of our former strengths — based on close ties to America — have become our vulnerabilities.”
Canadians, who for all of our history have been content to be second string players in the great game of geopolitics, now need to step up.
How the heck do we do that?
Learning to Share Power and Resources
Prime Minister Carney wants Canada to double its non-U.S. exports over the next 10 years, predicting it will generate $300 billion in new trade.
He says the Nov. 4th federal budget will add some heft to a new ‘Buy Canadian’ policy for major projects by prioritizing Canadian steel, aluminum and lumber – all now heavily penalized by American tariffs that show no sign of abating – along with manufactured goods and technology.
That likely means Halifax’s Irving Shipbuilding will be sourcing more steel from Quebec and Ontario, while central Canadian homebuilders will be encouraged to buy lumber and modular homes from New Brunswick and Nova Scotia.
Weirdly, we’re not particularly good at buying and selling with each other across regions. This is rooted in the geographic distance between us, which is then reflected in our political structure.
Canada is a federation, which means two or more levels of government share authority over a specific area and the people who live there.
We’ve got provinces, territories and the federal government, 14 jurisdictions in all, each with defined responsibilities, outlined in Sections 91 and 92 of the Constitution Act, formerly known as the British North America Act.
When you look at those photos of the Fathers of Confederation standing on the steps in Charlottetown, remember they were hashing out that the provinces would control education, health care, natural resources, local transportation and property rights, while the federal government would take care of navigation and shipping, banking and currency, criminal law, trade and commerce, defense and military, and interprovincial and international transportation.
It’s why the TransCanada Highway is maintained by federally-contracted road crews, and Highway 7 between Fredericton and Saint John is paid for by the province – that’s the division of powers in action.
It’s also why big national projects, such as oil and gas pipelines through British Columbia or Quebec are harder to build than a pipeline into Montana or Minnesota, and why mining companies demure from investing big in Canadian minerals and metals, despite the richness of Canada’s rock-bound veins.
Variations in land use regulations, labour laws, and local infrastructure capacity and the lack of coordination between provinces and territories can make Canada appear more trouble than it’s worth.
Regional Sovereignty Inside a National Agenda
Figuring out how regions can work better together was a topic of discussion during the recent OECD conference on place-based economic development, held in Moncton in early October.
According to Jeannine Ritchot, Assistant Deputy Minister for Intergovernmental Affairs, Canada is one of the most decentralized federations in the world, which means it’s hard work for Canadian governments to work together.
“Our provinces have their own tax capacity, so they can do a lot on their own, without the federal government,” she said. “There is no subordination to the federal government. They are their own sovereign governments.”
Sovereign, without a legal requirement to work together. The Canadian constitution does not require provinces and territories to collaborate on national priorities, unlike Germany and Switzerland, which embedded cooperation in their respective constitutions.
In our current crisis, learning to work together has been part of the retraining required of provincial premiers and their staff.
Ritchot, who is responsible for organizing intergovernmental gatherings, said that as the premiers have confronted the realities of our current economic crisis, bilateral agreements between specific provinces have gained momentum, rather than seeking a single multilateral agreement for the whole of Canada.
“Multilateralism is not really the gold standard anymore because it doesn’t recognize people’s diversity,” she said. “When you build a relationship bilaterally with, let’s say Alberta, which is a province that has often seen itself on the outside of the Federation, then they can come back to a multilateral table and that collaborative spirit, it’s a little easier to foster, because you have listened to them, and you have listened to their needs and you have tried to find solutions that will help their economy and their citizens.”
Bilateral agreements are on the agenda in New Brunswick. This year, Premier Susan Holt has signed memorandums of understanding with Ontario, Manitoba, PEI, Nova Scotia and Newfoundland and Labrador to reduce interprovincial trade barriers and increase labour mobility.
Tuesday’s Throne Speech advanced that agenda with a promise to introduce the New Brunswick Free Trade Within Canada Act, which “will remove internal regulatory barriers for goods and services that have been approved for sale in another Canadian jurisdiction,” furthering New Brunswick’s shift to internal free trade.
It will, of course, take more than legislation and signed promises to strengthen New Brunswick and the rest of the Maritimes’ chronically weak local economies.
As we avert our gaze from the chaos beyond our borders, we must focus inward to mend fences, fix what’s broken, and clarify our economic vision so we are ready to receive the rest of Canada to the East Coast’s table.
We may be small, but we don’t need to be minor players in Canada’s next decade.
Side Walks is fully funded by readers and organizations that support our mission to produce Canadian news and cultural commentary. If you’re enjoying this story, please consider becoming a paid subscriber, $8/month or $80/year. You can also sign up for a free subscription. All subscriptions deliver Side Walks directly to your email inbox, and you can also read along on the Substack app.
If you enjoyed this column, please share the love with others who you think would enjoy the conversation we’re having on Side Walks. We’re building a community interested in finding common ground around complex issues by focusing on local repercussions and opportunities caused by national and global issues. Cheers!
Stroll Over to Side Walks For More Stories
Place-based Development Story Series: East Coast Ambition Starts at Home
Convincing Homegrown Investors to Buy Local: Atlantic Canada’s Sandpiper Ventures and Mexico City show what happens when local capital backs local innovation – sustainable wealth with global reach
Trade Talks; Capital Walks: Canadian businesses have access to global markets, but infrastructure and policy certainty are needed to seal the deal, says Aaron Fowler, Canada’s chief trade negotiator for international trade.
Ideas
When Education is Bought and Sold: Turning classrooms into commodities risks reshaping more than just budgets; it’s redefining democracy.
Province on Fire: Northumberland County, home to New Brunswick’s forestry sector, is fighting back the flames.
Trade Reorientation Story Series: Saint John At The Crossroads
The Corner At The Centre of Things: Canada’s muscular new trade agenda is picking up speed; are the neighbourhoods in and around Simms Corner in West Saint John ready for what’s coming down the track?
Saint John’s Second Act: Global alliances, private investments, and cold chain innovations are transforming the Port of Saint John, but the real test will come inland.
Side Walks Home Page
Catch up on all our stories at www.sidewalksmedia.ca.