Preamble: In January 2009, Canada’s Premiers signed, along with the Prime Minister, a Declaration regarding the Agreement on Internal Trade (AIT). This declaration contains two key amendments to the existing AIT and marks a significant milestone toward eliminating internal trade barriers and enhancing labour mobility in Canada.

The two amendments pertain to improved labour mobility and an enhanced dispute resolution mechanism.

Little progress has been made on the issue of barriers to trade created by tax subsidies. 

Resolution: The Provinces and the Federal Government eliminate tax subsidies that constitute or propagate barriers to interprovincial trade within the provinces of Canada.

 

Resolution Report:  

The Manitoba Chambers of Commerce produces Resolution reports as part of its commitment to be accountable to its members. The reports are updated as matters unfold and have three components:

MCC Advocacy: Specific activities the MCC has done to help make this Resolution a reality. 

Developments:  Events (e.g. government action, media coverage) that relate to Resolution. 

Current Status: The MCC’s current plans to help make this Resolution a reality. 

Advice, comments, and information sharing are welcome; simply enter a reply at the bottom of this post.

 

MCC Advocacy: 

April 16, May 6 and May 7, 2009: The 2009-2010 Resolutions were posted on the MCC website, listed as part of a comprehensive Report on AGM 2009 and then notice of this story was circulated through the MCC e-Omnibus which is sent to all MCC members, Media and Government.

May 19, 2009: Resolution books were sent to every MLA and every Member of Parliament that hails from Manitoba. The following had this Resolution specifically drawn to their attention with a detailed letter setting out the background to this issue, Government initiatives (where applicable), and an argument for the Resolution:

• The Premier
• The Minister of Finance
• The Minister of Competitiveness, Training and Trade   

July 20, 2009: Corresponded with the Canadian Chamber of Commerce on this matter.  

 

Developments: 

August 7, 2009: The Manitoba Chambers of Commerce received a letter from Manitoba’s Minister of Finance. Unfortunately, that correspondence did not address this Resolution.

The letter does however feature detailed comments from the Minister of Finance on the Payroll Tax; Business Tax Relief; Infrastructure; Human Capital; and Effective, Efficient, Accountable and Transparent Government.

It can be read in its entirety here. 

 

Final Report:

This Resolution could not get any traction. People assumed it was targeting the rules that are the subject of the agreement on Internal Trade and then became daunted by the task when they realized what we were asking. It is a shame because this is an important issue and it certainly is not on the radar screen right now. More work needs to be done on this issue.