Alberta has already lowered most interprovincial trade barriers: MLA Hunter

Posted on May 1, 2025 by Sunny South News

– Energy East pipeline back on the agenda for Canadian politicians

By Trevor Busch
Sunny South News
editor@tabertimes.com

With the impact of crippling tariffs still looming over Canada’s economy early in 2025, there has been much talk recently among provinces and provincial leaders aimed at potentially eliminating any remaining interprovincial trade barriers.

In general, interprovincial trade barriers are any factors that hinder the free flow of goods, services and labour between provinces and territories, and can include regulatory differences, transportation issues, provincial tax differences, alcohol restrictions, ‘buy local’ procurement policies, health and safety standards, and professional licensing requirements.

Nationally, the consequences for preserving these protectionist measures can result in increased costs for businesses and consumers, reduced productivity and economic growth, and higher prices for consumers in areas like groceries and alcohol.

Taber-Warner MLA Grant Hunter, who previously served as Associate Minister of Red Tape Reduction with the UCP from 2019 to 2021, says that while efforts to eliminate barriers among other provinces will certainly be beneficial, Alberta has already been waiting in the wings for others to play catch up. 

“It would really benefit Alberta. Back when I was the red tape reduction minister, we actually got rid of 80 per cent of all interprovincial trade barriers, and the only ones that we kept were some of the things that had to do with labour mobility,” said Hunter. “But I think we’ve even got rid of some of that now – most of the trade barriers are coming from our partners in Confederation, namely Quebec. They’re the most egregious trying to protect their turf. We’ve done a great job of getting rid of those, so if other premiers are willing to get rid of theirs, that will benefit us. Because we have free flow of goods, and the fact that we’ve gotten rid of 80 per cent and everybody else is still up around keeping 90 per cent of all theirs is not helpful to us, because it’s not beneficial when everybody else has the trade barriers and we don’t.”

“So I’m very hopeful that they can figure that out, (and there) seems to be an appetite for that right now.”

The Canadian Chamber of Commerce estimates interprovincial trade barriers reduce Canada’s GDP by as much as seven per cent, and the federal Committee on Internal Trade points out eliminating barriers could add as much as $200 billion to the Canadian economy, lowering prices and expanding productivity. 

On a related front, the ongoing trade war with the U.S. has sparked growing interest in improving Canada’s energy self-sufficiency and revived talk among premiers about the now-cancelled Energy East pipeline. 

Proposed in 2013 and cancelled in 2017, the 4,600 kilometre pipeline would have carried more than a million barrels of crude oil per day from Alberta to an export terminal in Saint John, N.B. Although touted as a project to allow the Irving Oil refinery to process more Canadian crude, in reality the majority of the oil would have been exported. 

While politicians can muse about the merits of the project, says Hunter, appetite in Canada’s business environment is something else entirely after being increasingly stifled by ongoing political and regulatory risks. Opposition to the original project was strongest in Quebec, but even in that province the winds of change may be starting to blow. 

“The problem is the premier of Quebec has said there’s no chance that that’s going to happen, even though we have polling from Quebec that shows that over 70 per cent of Quebecois individuals want to have that – all right, okay, but I don’t know. I’m not sure how that would happen if the Premier and their government says no,” said Hunter.