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And yet many provinces treat beer, wine and other alcohol from other parts of Canada as if they’re imported from abroad. Provincial liquor boards, which often have monopolies or near-monopolies on the bulk purchase of booze, will typically apply higher markups for out-of-province products, or give preferential treatment for product from their own province through exemptions and rebates not available to out-of-province goods.
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While the barriers are almost exclusively provincial, no federal government over the years has been willing to spend the political capital to provide the provinces with extra motivation, through incentives or penalties, to bust the barriers.
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Analysts emphasize that it’s not just goods that face costly provincial barriers, but people too.
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A number of professions and skills face red tape and other obstacles in simply trying to cross a provincial border for work. The barriers can affect just about any profession that requires provincial licensing or certification, including:
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- dentists, pharmacists and other health and medical professionals;
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- truck drivers, pilots, heavy-vehicle operators and others in transportation;
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- accountants, lawyers, financial planners, real estate agents, insurance brokers and others in professional services;
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- electricians, carpenters, plumbers, and other skilled trades;
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- engineers, architects and others in construction;
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- hairstylists, barbers, early childhood workers and nail technicians.
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In the vast majority of cases, analysts say, it’s not a question of whether the skills are up to par, but just that each province has its own set of rules and qualifications to evaluate different professions. Yoo said Alberta, for example, doesn’t allow podiatrists from Saskatchewan to practise right away in their province because they view differences in the scope of practice. Those podiatrists can’t even begin to register to practice in Alberta while completing the additional education.
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In some cases, provinces have aligned their rules on matters such as trucking to harmonize with nearby American states, in line with their heaviest commercial traffic flows.
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But in most cases, analysts say, the interprovincial obstacles are about protecting local interests, but lead to wasted time and money. New Brunswick doesn’t allow certified hairstylists from another province to use the titles “hairstylist” or “hairdresser” without first registering with that province’s cosmetology association, Yoo said. That means taking an exam, filling out paperwork and paying a fee of hundreds of dollars.
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These barriers are not just annoying and costly for individual Canadians who want to work elsewhere in the country, but it’s also costly to the economy. When workers can move freely and their licensing and certifications are recognized across the country, it means more people are working and labour shortages are filled more easily.
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While some unions and provincial governments may prefer the narrow gains from reduced competition and sheltered businesses, economists say the broader effects of the artificial barriers are higher prices, unemployment and skills not being used where they are most needed. Provinces that celebrated Canada’s birthday this week, and say the usual things about buying Canadian products and travelling domestically, are still awkward about the notion of free trade within Canada.
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For Skinner Buksevics and other wineries from the Okanagan Valley and across the country, that means they’ll continue to focus their energies and sales efforts largely on their smaller, home markets, and foreign markets such as Germany.
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National Post
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