The mayors of Ottawa and Gatineau are lobbying their provinces to take away interprovincial commerce obstacles to strengthen the native financial system amid the specter of a Canada-U.S. tariff struggle.
“Our area is exclusive in that it consists of two cities in two totally different provinces, but features as a single metropolitan space,” reads the assertion from Ottawa Mayor Mark Sutcliffe and Gatineau Mayor Maude Marquis-Bissonnette.
“In mild of the rising tariff risk, we consider this second presents a chance to raised leverage the financial potential of our area.”
The mayors of Canada’s greatest cities met in Ottawa Thursday, the place Marquis-Bissonnette and Sutcliffe have been capable of share financial issues with their counterparts about U.S. President Donald Trump’s risk to closely tax Canadian items early subsequent month.
Inside Commerce Minister Anita Anand has mentioned eradicating present provincial commerce obstacles “may decrease costs by as much as 15 per cent, increase productiveness by as much as seven per cent and add as much as $200 billion to the home financial system.”
“There’s a want for us, for the Canadian financial system to be extra horizontally built-in to cut back our dependence to the U.S. market,” Marquis-Bissonnette mentioned.
‘It is a second of urgency’
Sutcliffe mentioned there isn’t any stronger instance of inner commerce obstacles at work than Ottawa-Gatineau, as he is heard from companies who’re unable to successfully promote their merchandise throughout the Ottawa River.
“I do not suppose there’s anyplace else within the nation the place there are two cities which might be so carefully positioned along with a provincial border between them,” he instructed Ontario Chronicle.
The Portage Bridge, which spans the Ottawa River between Gatineau, Que., and Ottawa, in 2022. (Michel Aspirot/CBC)
One instance is alcohol, the place provinces train sturdy management. Sutcliffe mentioned he is heard from brewers within the space who mentioned they’ve a neater time exporting to the U.S. than to Quebec.
Different obstacles embrace technical obstacles comparable to car weight requirements and regulatory obstacles comparable to licensing and paperwork necessities.
Efforts to take away home commerce hurdles have been ongoing for years, like in 2017 when provinces and territories signed the Canadian Free Commerce Settlement. However a few of these obstacles continued, as an in depth listing of exemptions was negotiated for every province and territory.
The joint assertion from Sutcliffe and Marquis-Bissonnette additionally acknowledges that some restrictions are obligatory, comparable to these round safeguarding the French language.
Whereas inner commerce hurdles aren’t a brand new challenge, the specter of new U.S. tariffs is. Sutcliffe hopes this conjures up a political will to lastly change these obstacles.
“I feel this can be a second of urgency and a second when everyone will get collectively and tries to search out options.”
