Canadians back interprovincial trade reform ahead of landmark case
While Canada continues to seek out free trade with the world, including a strong NAFTA settlement, Canadians are also keen to ensure a better interprovincial system when it comes to alcohol.
A landmark court case could shake up laws dating back to prohibition and help break provincial alcohol monopolies; good news for provincial alcohol producers and retailers.
Next week the Supreme Court will decide whether Canadians are legally entitled to transport goods bought legally from one province to another. The hearing is an escalation of a 5-year-old case brought against New Brunswick retiree Gerard Comeau for transporting alcohol across provincial borders.
"When Mr. Comeau contested a $300 fine, he had no idea that he was planting the seeds of a legal battle that could end up radically reforming trade within Canada. Yet that is exactly what could happen," points out Marco Navarro-Génie, President of the Atlantic Institute for Market Studies.
The demand for a change to the system is clear according to a poll by Ipsos commissioned by the MEI, the Canadian Constitution Foundation (CCF), and the Atlantic Institute for Market Studies (AIMS).
The majority (78%) of respondents believe there should be no limits on transporting alcohol across borders and 84% believe they should be able to order wine directly from a winery in another province.
Just 16% of respondents agree that provincial governments should be able to restrict goods from other provinces to protect their own industries; and only 12% agree with restrictions for governments to collect more revenues.
A study published in the Canadian Journal of Economics calculated that free interprovincial trade could give Canadian GDP a boost of $50-130 billion.
"Clearly, Canadians understand the advantages of free trade and want to fully enjoy those benefits within their own country, where many obstacles to truly free trade persist," explains Michel Kelly-Gagnon, President and CEO of the MEI.
A landmark court case could shake up laws dating back to prohibition and help break provincial alcohol monopolies; good news for provincial alcohol producers and retailers.
Next week the Supreme Court will decide whether Canadians are legally entitled to transport goods bought legally from one province to another. The hearing is an escalation of a 5-year-old case brought against New Brunswick retiree Gerard Comeau for transporting alcohol across provincial borders.
"When Mr. Comeau contested a $300 fine, he had no idea that he was planting the seeds of a legal battle that could end up radically reforming trade within Canada. Yet that is exactly what could happen," points out Marco Navarro-Génie, President of the Atlantic Institute for Market Studies.
The demand for a change to the system is clear according to a poll by Ipsos commissioned by the MEI, the Canadian Constitution Foundation (CCF), and the Atlantic Institute for Market Studies (AIMS).
The majority (78%) of respondents believe there should be no limits on transporting alcohol across borders and 84% believe they should be able to order wine directly from a winery in another province.
Just 16% of respondents agree that provincial governments should be able to restrict goods from other provinces to protect their own industries; and only 12% agree with restrictions for governments to collect more revenues.
A study published in the Canadian Journal of Economics calculated that free interprovincial trade could give Canadian GDP a boost of $50-130 billion.
"Clearly, Canadians understand the advantages of free trade and want to fully enjoy those benefits within their own country, where many obstacles to truly free trade persist," explains Michel Kelly-Gagnon, President and CEO of the MEI.
