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Tariffs Get The Blame But It’s Non-Tariff Barriers That Kill Free Trade

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From the Frontier Centre for Public Policy

By Ian Madsen

From telecom ownership limits to convoluted regulations, these hidden obstacles drive up prices, choke innovation, and shield domestic industries from global competition. Canada ranks among the worst offenders. If Ottawa is serious about free trade, it’s time to tackle the red tape, not just the tariffs.

Governments claim to support free trade, but use hidden rules to shut out foreign competition

Tariffs levied by governments on imports are a well-known impediment to trade. They raise costs for consumers and businesses alike. But tariffs are no longer the main obstacle to the elusive goal of “free and fair trade.” A more significant—and often overlooked—threat comes from non-tariff barriers: the behind-the-scenes rules, subsidies and restrictions that quietly block competition from foreign exporters.

These barriers can take many forms, including import licences, quotas, discriminatory regulations and state subsidies. The result is often higher prices, limited product choices and reduced innovation, since foreign competitors are effectively shut out of the market before they can enter.

This hidden protectionism harms both consumers and Canadian firms that rely on imported goods or global supply chains.

To understand the global scope of these barriers, a recent analysis by the Tholos Foundation sheds light on their prevalence and impact. Its 2023 Non-Tariff Barriers Index Report examined the policies, laws and trade practices of 88 countries, representing 96 per cent of the world’s population and GDP.

The results are surprising: the United States, with some of the lowest official tariffs, ranked 65th on non-tariff barriers. Canada, by contrast, ranked fourth.

These barriers are often formalized and tracked under the term “non-tariff measures” by international organizations such as the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization.

UNCTAD notes that while some serve legitimate non-trade objectives like public health or environmental protection, they still raise trade costs through procedural hurdles that can disproportionately affect small exporters or developing nations.

Other barriers include embargoes, import deposits, subsidies to favoured companies, state procurement preferences, technical standards designed to exclude foreign goods, restrictions on foreign investment, discriminatory taxes and forced technology transfers.

Many of these are detailed in a study by the Leibniz Institute for Economic Research at the University of Munich.

Sanctions and politically motivated trade restrictions also fall under this umbrella, complicating efforts to build reliable global trade networks.

Among the most opaque forms of trade distortion is currency manipulation. Countries like Japan have historically used ultra-low interest rates to stimulate growth, which also weakens their currencies.

Others may unintentionally devalue their currency through excessive, debt-financed spending. Regardless of motive, the effect is often the same: foreign goods become more expensive, and domestic exports become artificially competitive.

Canada is no stranger to non-tariff barriers. Labelling laws, technical standards and foreign ownership restrictions, particularly in telecommunications and digital media, are clear examples. Longstanding rules prevent foreign companies from owning Canadian telecom providers, limiting competition in an industry where Canadians already pay among the highest cellphone bills in the world. Similar restrictions on investment in broadcasting and interactive digital media also curtail innovation and investment.

Other nations use these barriers just as liberally. The U.S. has expanded its use of the “national security” exemption to justify restrictions in nearly any industry it sees as threatened. The European Union employs a wide range of non-tariff measures that affect sectors from agriculture to digital services. So while China is frequently criticized for abusing trade rules, it is far from the only offender.

If governments are serious about pursuing freer, fairer global trade, they must confront these less visible but more potent barriers. Tariffs may be declining, but protectionism is alive and well, just hidden behind layers of red tape.

For Canada to remain competitive and protect consumers, we must look beyond tariffs and scrutinize the subtler ways the federal government is restricting trade.

Ian Madsen is a senior policy analyst at the Frontier Centre for Public Policy.

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EU investigates major pornographic site over failure to protect children

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From LifeSiteNews

By Jonathon Van Maren

Pornhub has taken down 91% of its images and videos and a huge portion of the last 9% will be gone by June 30 because it never verified the age or consent of those in the videos.

Despite an aggressive PR operation to persuade lawmakers that they have reformed, Pornhub is having a very bad year.

On May 29, it was reported that the European Commission is investigating the pornography giant and three other sites for failing to verify the ages of users.

The investigation, which comes after a letter sent to the companies last June asking what measures they have taken to protect minors, is being carried out under the Digital Services Act. The DSA came into effect in November 2022 and directs platforms to ensure “appropriate and proportionate measures to ensure a high level of privacy, safety, and security of minors, on their service” and implement “targeted measures to protect the rights of the child, including age verification and parental control tools, tools aimed at helping minors signal abuse or obtain support, as appropriate.”

According to France24: “The commission, the EU’s tech regulator, accused the platforms of not having ‘appropriate; age verification tools to prevent children from being exposed to pornography. An AFP correspondent only had to click a button on Tuesday stating they were older than 18 without any further checks to gain access to each of the four platforms.”

Indeed, Pornhub’s alleged safety mechanisms are a sick joke, and Pornhub executives have often revealed the real reason behind their opposition to safeguards: It limits their traffic.

Meanwhile, Pornhub — and other sites owned by parent company Aylo — are blocking their content in France in response to a new age verification law that came into effect on June 7. Solomon Friedman, Aylo’s point man in the Pornhub propaganda war, stated that the French law was “potentially privacy infringing” and “dangerous,” earning a scathing rebuke from France’s deputy minister for digital technology Clara Chappaz.

“We’re not stigmatizing adults who want to consume this content, but we mustn’t do so at the expense of protecting our children,” she said, adding later, “Lying when one does not want to comply with the law and holding others hostage is unacceptable. If Aylo would rather leave France than apply our law, they are free to do so.” According to the French media regulator Arcom, 2.3 million French minors visit pornographic sites every month.

Incidentally, anti-Pornhub activist Laila Mickelwait reported another major breakthrough on June 7. “P*rnhub is deleting much of what’s left of the of the site by June 30,” she wrote on X. “Together we have collectively forced this sex trafficking and rape crime scene to take down 91% of the entire site, totaling 50+ million videos and images. Now a significant portion of the remaining 9% will be GONE this month in what will be the second biggest takedown of P*rnhub content since December 2020.”

“The reason for the mass deletion is that they never verified the age or consent of the individuals depicted in the images and videos, and therefore the site is still awash with real sexual crime,” she added. “Since the fight began in 2020, 91% of P*rnhub has been taken down — over 50 million images and videos. Now a huge portion of the last 9% will be gone by June 30 because P*rnhub never verified the age or consent of those in the videos and the site is a crime scene.”

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Jonathon’s writings have been translated into more than six languages and in addition to LifeSiteNews, has been published in the National PostNational ReviewFirst Things, The Federalist, The American Conservative, The Stream, the Jewish Independent, the Hamilton SpectatorReformed Perspective Magazine, and LifeNews, among others. He is a contributing editor to The European Conservative.

His insights have been featured on CTV, Global News, and the CBC, as well as over twenty radio stations. He regularly speaks on a variety of social issues at universities, high schools, churches, and other functions in Canada, the United States, and Europe.

He is the author of The Culture WarSeeing is Believing: Why Our Culture Must Face the Victims of AbortionPatriots: The Untold Story of Ireland’s Pro-Life MovementPrairie Lion: The Life and Times of Ted Byfield, and co-author of A Guide to Discussing Assisted Suicide with Blaise Alleyne.

Jonathon serves as the communications director for the Canadian Centre for Bio-Ethical Reform.

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Natural gas pipeline ownership spreads across 36 First Nations in B.C.

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Chief David Jimmie is president of Stonlasec8 and Chief of Squiala First Nation in B.C. He also chairs the Western Indigenous Pipeline Group. Photo courtesy Western Indigenous Pipeline Group

From the Canadian Energy Centre

Stonlasec8 agreement is Canada’s first federal Indigenous loan guarantee

The first federally backed Indigenous loan guarantee paves the way for increased prosperity for 36 First Nations communities in British Columbia.

In May, Canada Development Investment Corporation (CDEV) announced a $400 million backstop for the consortium to jointly purchase 12.5 per cent ownership of Enbridge’s Westcoast natural gas pipeline system for $712 million.

In the works for two years, the deal redefines long-standing relationships around a pipeline that has been in operation for generations.

“For 65 years, there’s never been an opportunity or a conversation about participating in an asset that’s come through the territory,” said Chief David Jimmie of the Squiala First Nation near Vancouver, B.C.

“We now have an opportunity to have our Nation’s voices heard directly when we have concerns and our partners are willing to listen.”

Jimmie chairs the Stonlasec8 Indigenous Alliance, which represents the communities buying into the Enbridge system.

The name Stonlasec8 reflects the different regions represented in the agreement, he said.

The Westcoast pipeline stretches more than 2,900 kilometres from northeast B.C. near the Alberta border to the Canada-U.S. border near Bellingham, Wash., running through the middle of the province.

Map courtesy Enbridge

It delivers up to 3.6 billion cubic feet per day of natural gas throughout B.C. and the Lower Mainland, Alberta and the U.S. Pacific Northwest.

“While we see the benefits back to communities, we are still reminded of our responsibility to the land, air and water so it is important to think of reinvestment opportunities in alternative energy sources and how we can offset the carbon footprint,” Jimmie said.

He also chairs the Western Indigenous Pipeline Group (WIPG), a coalition of First Nations communities working in partnership with Pembina Pipeline to secure an ownership stake in the newly expanded Trans Mountain pipeline system.

There is overlap between the communities in the two groups, he said.

CDEV vice-president Sébastien Labelle said provincial models such as the Alberta Indigenous Opportunities Corporation (AIOC) and Ontario’s Indigenous Opportunities Financing Program helped bring the federal government’s version of the loan guarantee to life.

“It’s not a new idea. Alberta started it before us, and Ontario,” Labelle said.

“We hired some of the same advisors AIOC hired because we want to make sure we are aligned with the market. We didn’t want to start something completely new.”

Broadly, Jimmie said the Stonlasec8 agreement will provide sustained funding for investments like housing, infrastructure, environmental stewardship and cultural preservation. But it’s up to the individual communities how to spend the ongoing proceeds.

The long-term cash injections from owning equity stakes of major projects can provide benefits that traditional funding agreements with the federal government do not, he said.

Labelle said the goal is to ensure Indigenous communities benefit from projects on their traditional territories.

“There’s a lot of intangible, indirect things that I think are hugely important from an economic perspective,” he said.

“You are improving the relationship with pipeline companies, you are improving social license to do projects like this.”

Jimmie stressed the impact the collaborative atmosphere of the negotiations had on the success of the Stonlasec8 agreement.

“It takes true collaboration to reach a successful partnership, which doesn’t always happen. And from the Nation representation, the sophistication of the group was one of the best I’ve ever worked with.”

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