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Canada: It’s Time to Stop Holding Ourselves Back – Lynn Exner

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7 minute read

From Energy Now

By Lynn Exner

For decades, Canada’s provinces have behaved like crabs in a bucket—pulling each other down instead of lifting each other up. Instead of working together to build a stronger economy, we’ve allowed outdated trade barriers, regulatory red tape, and political infighting to stifle our own potential.

 

In my work advocating for Canadian resource development, I see it all the time. Canada has everything the world needs—energy, minerals, lumber, food, and more. But instead of ensuring our own domestic economy is strong and efficient, we’ve made it harder for businesses to grow, both within our borders and beyond them. Instead of celebrating and capitalizing on each other’s strengths, we have spent too much time competing internally, blocking opportunities, and making it difficult to trade internationally and within our own country.

That might have been tolerated in the past, when global trade was predictable and our largest trading partners were reliable. But the world has changed. Tariffs are being weaponized, supply chains are shifting, and countries everywhere are prioritizing their own industries.

If Canada wants to remain competitive, we need to start acting like a country—one with an internal economy that functions as smoothly as our external trade agreements.

The good news is that momentum is finally building to address this issue. Canada’s leaders are talking about dismantling interprovincial trade barriers—something that should have happened long ago. The challenge now is to make sure that this talk turns into action. It has been suggested it could take as little as 30 days. We can’t afford another decade of stalled negotiations, watered-down agreements, and excuses for inaction. It’s time to demand real change and hold our leaders accountable to follow through.

Every region of Canada produces something the rest of the country and the world need. Alberta’s oil and gas, Saskatchewan’s potash, Ontario’s manufacturing, Quebec’s hydroelectric power, British Columbia’s ports, and Atlantic Canada’s fisheries—these industries are the backbone of our economy. They should be supported, expanded, and celebrated. Instead, businesses and workers trying to move goods, services, and expertise across provincial lines face obstacles that weaken our ability to compete globally.

One of the most common-sense solutions is a National Energy and Resource Corridor—a dedicated infrastructure network that allows for the efficient transport of energy, minerals, and other critical resources across the country. Instead of every project facing jurisdictional battles and costly delays, a coordinated, pre-approved corridor would streamline trade and investment, ensuring that Canadian products reach both domestic and international markets without unnecessary obstacles. It would also provide a foundation for future development—whether in oil and gas, renewable energy, or critical minerals—giving businesses and investors the certainty they need to support long-term growth.

We see the need for this in our supply chains, where businesses deal with costly delays just trying to move products between provinces. We see it in our labour markets, where skilled workers face unnecessary barriers to working in other regions of the country. And we see it in national infrastructure projects that could benefit all Canadians but get tangled in red tape.

These inefficiencies cost our economy billions of dollars every year—money that should be driving investment, innovation, and job creation instead of being lost to unnecessary restrictions.

 

In normal times, this would be frustrating. In today’s economic and geopolitical climate, it’s reckless. The global marketplace is shifting, and Canada must be ready to meet the challenge. Instead of being held back by internal divisions, we need to work together to make Canada a stronger, more self-sufficient, and more competitive trading nation.

We’ve proven that cooperation is possible when it’s absolutely necessary. Now, we need to treat it as a permanent priority, not just a temporary fix during a crisis. This is not just about economic efficiency—it’s about Canada’s ability to stand strong in a changing world.

There is no reason why a Canadian business should have to navigate different rules and restrictions just to expand into another province. There is no reason why a worker should have to requalify to do the same job in a different part of the country. And there is certainly no reason why major projects that create jobs and economic growth should be stalled for years over jurisdictional disputes.

A crisis like this is a terrible thing to waste. The global economy is shifting, and Canada has a choice. We can cling to outdated provincial protectionism and regulatory inefficiencies, or we can remove these barriers and finally build a true national economy. We can keep acting like crabs in a bucket, pulling each other down, or we can recognize that our strength lies in working together. Instead of standing in each other’s way, we should be celebrating each other’s strengths and ensuring that every region of the country can contribute fully to our shared prosperity.

Canada has faced major challenges before, and we’ve always been at our best when we face them as a united country. Now, more than ever, we need to tap into that spirit—not just to fix today’s problems, but to prepare for whatever surprises the future holds. The time for provincial rivalries, excessive regulation, and economic inefficiency is over.

It’s time to break free from the bucket and move forward as a stronger, more competitive, and more resilient Canada.

 


Lynn Exner is a spokesperson for Canada Action, a volunteer-initiated grassroots group dedicated to promoting natural resource development and economic growth in Canada.

Business

Trump Tariffs are not going away. Canada needs to adapt or face the consequences

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Canadian politicians seem highly focused on fighting the Trump Tariffs with counter tariffs.  This tit for tat battle is like catnip for politicians and media, but it takes attention away from the real situation.  Tariffs are not something we can try to get rid.  Tariffs aren’t a ploy by Trump to influence Canada to strengthen border control.  This is the beginning of the end for the free trade agreement that Canada has 0rganized its entire economy around.

Bob Lighthizer was President Donald Trump’s U.S. Trade Representative during the first Trump administration, from 2017 to 2021.  Watch / Listen to this conversation as Lighthizer explains how Free Trade did not work out well for the American worker. As Lighthizer explains, Free Trade has boosted China, Mexico, and numerous nations where labour is cheap.

The second Trump administration is determined to bring manufacturers back to the US and countries like Canada better adapt fast or the price we’ll pay will be even steeper.

It doesn’t matter if we agree, or disagree, or how many counter tariffs Canadians apply.  The only way out of this mess will be to rebuild the manufacturing sector in Canada and to develop our resources like never before.  The sooner Canada sheds the chains of a net zero focused economy the more likely our nation will survive.

Enjoy this fascinating conversation and apply what you learn to how you see Canada adapting to the new reality.

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Agriculture

It’s time to end supply management

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From the Frontier Centre for Public Policy

By Ian Madsen

Ending Canada’s dairy supply management system would lower costs, boost exports, and create greater economic opportunities.

The Trump administration’s trade warfare is not all bad. Aside from spurring overdue interprovincial trade barrier elimination and the removal of obstacles to energy corridors, it has also spotlighted Canada’s dairy supply management system.

The existing marketing board structure is a major hindrance to Canada’s efforts to increase non-U.S. trade and improve its dismal productivity growth rate—crucial to reviving stagnant living standards. Ending it would lower consumer costs, make dairy farming more dynamic, innovative and export-oriented, and create opportunities for overseas trade deals.

Politicians sold supply management to Canadians to ensure affordable milk and dairy products for consumers without costing taxpayers anything—while avoiding unsightly dumping surplus milk or sudden price spikes. While the government has not paid dairy farmers directly, consumers have paid more at the supermarket than their U.S. neighbours for decades.

An October 2023 C.D. Howe Institute analysis showed that, over five years, the Canadian price for four litres of partly skimmed milk generally exceeded the U.S. price (converted to Canadian dollars) by more than a dollar, sometimes significantly more, and rarely less.

A 2014 study conducted by the University of Manitoba, published in 2015, found that lower-income households bore an extra burden of 2.3 per cent of their income above the estimated cost for free-market-determined dairy and poultry products (i.e., vs. non-supply management), amounting to $339 in 2014 dollars ($435 in current dollars). Higher-income households paid an additional 0.5 per cent of their income, or $554 annually in 2014 dollars ($712 today).

One of the pillars of the current system is production control, enforced by production quotas for every dairy farm. These quotas only gradually rise annually, despite abundant production capacity. As a result, millions of litres of milk are dumped in some years, according to a 2022 article by the Montreal Economic Institute.

Beyond production control, minimum price enforcement further entrenches inefficiency. Prices are set based on estimated production costs rather than market forces, keeping consumer costs high and limiting competition.

Import restrictions are the final pillar. They ensure foreign producers do not undercut domestic ones. Jaime Castaneda, executive vice-president of the U.S. National Milk Producers Federation, complained that the official 2.86 per cent non-tariffed Canadian import limit was not reached due to non-tariff barriers. Canadian tariffs of over 250 per cent apply to imports exceeding quotas from the European Union, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Canada-United States-Mexico Agreement (CUSMA, or USMCA).

Dairy import protection obstructs efforts to reach more trade deals. Defending this system forces Canada to extend protection to foreign partners’ favoured industries. Affected sectors include several where Canada is competitive, such as machinery and devices, chemicals and plastics, and pharmaceuticals and medical products. This impedes efforts to increase non-U.S. exports of goods and services. Diverse and growing overseas exports are essential to reducing vulnerability to hostile U.S. trade policy.

It may require paying dairy farmers several billion dollars to transition from supply management—though this cartel-determined “market” value is dubious, as the current inflation-adjusted book value is much lower—but the cost to consumers and the economy is greater. New Zealand successfully evolved from a similar import-protected dairy industry into a vast global exporter. Canada must transform to excel. The current system limits Canada’s freedom to find greener pastures.

Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy.

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