Open Trade Principles would Improve Economic Fundamentals, Coalition tells Premiers 

The following letter was sent to Premier Jean Charest by a coalition of 10 national business and professional organizations as he prepares to host the meeting of the Council of the Federation in Quebec City, July 16 to 18.

Dear Premier Charest:

In anticipation of next week’s meeting of the Council of the Federation in Quebec City, we are writing to express our strong support for your objective of creating a stronger and more effective Agreement on Internal Trade, particularly as it relates to dispute resolution and enforcement. Given the slowdown in the economy and uncertainty, your efforts are timely in helping to improve Canada’s economic fundamentals for the future.

Earlier this year, our organizations joined other business and professional associations in releasing a report titled, Improving Internal trade: A Bold Approach. Our paper called for legislative enactments to establish a set of “open trade principles” designed to ensure a free and open domestic market and a standing internal tribunal that would be accessible to all Canadians as a means of resolving internal trade disputes.

We note your direction earlier this year to ministers to complete negotiations for your upcoming meeting related to your five-point plan. We are pleased that clear timelines for the final ratification of the labour mobility chapter and a dispute resolution mechanism have been established. We encourage the adoption of similar timetables to complete work in the other areas of your plan, notably energy, agriculture and transportation.

We understand ministers reached a consensus on an enforcement mechanism to resolve disputes, including a tiered approach to monetary penalties in the event of non-compliance. This improvement is to be presented by ministers as an amendment to the Agreement by end of year. Additionally, we understand that as part of this consensus, ministers agreed to a mechanism to deal with outstanding disputes under the AIT and that this mechanism will be included in the proposed amendments by year end.

Effective and enforceable dispute resolution is essential to the credibility of the Agreement, both for any future disputes and to bring parties into compliance with panel decisions already rendered.

Such a step would mark a strong step forward in restoring confidence in the Agreement. We look forward to the results of your meeting in Quebec City.

The coalition consists of the Canadian Bankers Association, the Canadian Chamber of Commerce, the Canadian Council of Chief Executives, the Canadian Federation of Independent Business, the Canadian Manufacturers & Exporters, the Canadian Petroleum Products Institute, the Canadian Restaurant and Foodservices Association, the Certified General Accountants Association of Canada, the Dairy Processors Association of Canada and the Vegetable Oil Industry of Canada.

Copies of the coalition’s discussion paper, Improving Internal Trade: A Bold Approach, are available online at www.cga.org/canada/internaltrade.

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