Roundup: Cautious optimism on trade barriers

Anita Anand told reporters yesterday that she is making progress with provinces when it comes to eliminating interprovincial trade barriers, which sounds great. In fact, she claims that some of those barriers could be “wiped away” in the next thirty days. It would be great news if that’s true, but I have my doubts because these barriers are incredibly difficult to harmonise around the country, and they’re mostly differing regulations, which are perfectly valid exercise of provincial powers. They’re extremely difficult to harmonize because sometimes they differ for a reason. Kevin Milligan explains in this thread if you click through. (He also throws cold water on the notion that we could or should join the EU).

Glad we got through the tariff emergency (at least the first wave of it….). Also glad that people are bringing creativity, energy, and determination to figuring out a medium and long-run response.But I want to throw cold water on three ideas I've seen floated. I'll explain…

Kevin Milligan (@kevinmilligan.bsky.social) 2025-02-04T20:24:14.385Z

I have to say that I am very curious regarding the method by which Anand is securing these changes, because I have heard no chatter about provinces being willing to surrender some of their provincial sovereignty in order to eliminate some of these barriers. I have also heard nothing about any kind of common regulatory body that could make determinations and that the provinces would adhere to, because they’ve all eschewed a common securities regulator, which should be low-hanging fruit for regulatory harmonisation, and yet… That would seem to imply that they have been establishing some sort of framework around mutual recognition of standards or credentials, but as of yet we have no real details.

As one example from that story: size and weight regulations for transport trucks.There is a very good reason that BC has detailed rules about snow chains for trucks and other provs may not. We have snowy mountains; some provs do not….www2.gov.bc.ca/gov/content/…

Kevin Milligan (@kevinmilligan.bsky.social) 2025-02-05T20:36:21.924Z

…so this doesn't mean we can't have a Canada-wide standard for truck size/weight. It means you really have to work hard to ensure the standard makes sense for each prov.If you get this wrong, people die. Regs that are too loose result in trucking accidents. So it takes work to get it right.

Kevin Milligan (@kevinmilligan.bsky.social) 2025-02-05T20:40:05.709Z

The other note of caution I would make is that even if these barriers were reduced or eliminated, it would take time to reorient supply chains east-to-west rather than north-to-south, so there would be no immediate cushioning effect from any Trump tariffs. People will need to have realistic expectations about what this will achieve, particularly in the short-to-medium term.

Ukraine Dispatch

Ukraine is blaming an explosion at a draft office in Khmelnytskyi region that killed one person and wounded several others as a series of Russian spies orchestrating attacks. 150 Ukrainian POWs were returned in a prisoner swap with Russia. Here are some of the details about how Ukrainians captured two North Korean soldiers fighting in Kursk region. Ukrainians are also noting a marked improvement in the accuracy of North Korean missiles fired at Ukraine.

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