Agreement on Internal Trade Would Give Too Much Authority to Private Interests

Could the rates charged by Manitoba childcare centers, by Manitoba Hydro or the benefits paid by Manitoba Public Insurance be deemed unfair competition and lead to penalties by virtue of the Agreement on Internal Trade (AIT) discussed by the Premiers on July 17? This could very well be the case according to the presidents of provincial and territorial labour federations.

Quebec Federation of Labour President Michel Arsenault, speaking on behalf of his colleagues from the other provinces and territories said, "We observe a strong push by a powerful business lobby to deepen the AIT's ambit and to institute a binding trade tribunal system that could impose fines on provinces. Premiers would abdicate significant authority to private interests."

Manitoba Federation of Labour President Darlene Dziewit said "Up to now, the AIT was a political agreement based on the consensus of the parties involved with no binding settlement mechanisms or penalties. The current negotiation would change that and open the door for corporations who might want to challenge a province or a municipality's laws and regulations if they are deemed 'barriers to trade'. This would import into Canadian domestic affairs the measures that now exist under NAFTA and the WTO."

Arsenault said, "It is sad that the Premiers are wasting their time providing problematic solutions to the non-existent problem of trade barriers in Canada. Claims that trade barriers are costing up to .1 per cent of GDP are not credible, have never been substantiated and are just an excuse to put constraints on governments' ability to regulate. The fact of the matter is that trade among Canadian provinces vastly outweighs that with the United States.

"It seems to us that instead of putting forward erroneous solutions to non-existent problems, the Premiers ought to address the real issues such as the job crisis in manufacturing, high gas and heating oil prices, and the need to improve public transportation."

The labour leaders condemned the veil of secrecy that shrouds the discussions around the AIT, discussions that could well subvert the principles of federalism and governments' ability to regulate in the public interest. They call on all parties concerned for public consultations on this matter in every jurisdiction.