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Citizen of One, Citizen of the Whole: How Ottawa can strengthen our nation by eliminating provincial trade barriers with a charter of economic rights

The federal government has the legal power and moral duty to ensure that there are no restrictions and impediments to the free movement of people, goods, services and investment in Canada.

June 21, 2010
in Domestic Policy, Latest News, Intergovernmental Affairs, Papers, Economic Policy, Brian Lee Crowley
Reading Time: 6 mins read
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By Brian Lee Crowley, Robert Knox and John Robson
June 21, 2010

PDF of paper

Executive Summary | Sommaire (le français suit)

If Canada is our common home, why are so many doors locked inside it? The federal government has the legal power and moral duty to ensure that there are no restrictions and impediments to the free movement of people, goods, services and investment in Canada. Not only are these barriers costly impediments to the efficiency of the Canadian marketplace, but they interfere with and erode the basic rights of Canadians. Establishing that Canadians have a right to move, work and do business anywhere in Canada would be the much-delayed fulfilment of our Founders’ dream of a great nation, and of the deal they struck in 1867.

The national duty

Provincial and federal measures and policies that impede and restrict trade do considerable economic harm. But they do something far worse. They make us less of a nation. Our national anthem celebrates “the true North, strong and free” and our first French-speaking prime minister, the Liberal Sir Wilfrid Laurier, boasted that “Canada is free, and freedom is its nationality.” When governments trample on our right to move about, make a living, and use our talents as we think fit anywhere in our national home, they don’t just make us poorer or less free, they turn us from fellows into foes and from citizens into strangers.

The economic responsibility

The economic case for national action is also compelling. It makes no sense to have impediments to trade and economic activity between provinces simply because there are no national rules to stop them. If barriers are intended to make one province or territory richer by making others poorer they usually fail and we all suffer, but anyone who fails to play the protectionist game is a chump. Only the national government can ensure that Canada has an open, efficient, predictable and stable domestic market where all Canadians are treated fairly and equally.

The legal power

As in every well-designed federation, Canada’s Constitution firmly and distinctly assigns power over internal trade to the central government. The Fathers of Confederation clearly wanted to make Canada one economic space, to prevent a harmful protectionist “beggar-thy-neighbour” free-for-all. And the courts have generally upheld this vision. Only a failure of federal nerve has prevented the forceful exercise of this clear power. It is high time for the federal government to introduce a sweeping statute to ensure that no government rules or policies unnecessarily restrict the free movement of goods, services, labour and capital, and give individual citizens clear legal remedies against such restrictions.

Our recommendations

We recommend that, since the federal government already has the power to get rid of most of the barriers to free trade and mobility within Canada, an Act of Parliament should create The Economic Charter of Rights for Canadians that would be faithful to the vision of our Founding Fathers while respecting the constitutional division of powers and responsibilities between the provinces and Ottawa. We further recommend the creation of an Economic Freedom Commission with the power to investigate breaches of the Economic Charter of Rights on its own initiative as well as in response to complaints. Giving this body power to bring its own legal actions would dramatically benefit individuals and small businesses that cannot afford to launch costly litigation against provincial authorities.

Time to act

If Canada is our common home, we should not be shut out of many rooms or forced to empty our pockets before entering them. The federal government has the duty and the power to undo this harm.

In the 2007 Throne Speech the federal government promised to “consider how to use the federal trade and commerce power to make our economic union work better for Canadians” and in its 2008 election platform the Conservative Party declared itself “prepared to intervene by exercising federal authority if barriers to trade, investment and mobility remain by 2010.”

The federal power exists. The domestic barriers continue. The historical vision and the present moral duty are clear. Why are Canadians still waiting to have their freedoms vindicated in this vital field? What is the government waiting for?


Si le Canada est notre domicile commun, pourquoi contient-il autant de portes fermées? Le gouvernement fédéral a le pouvoir moral et légal de faire en sorte qu’il n’y ait aucune restriction ou obstacle au libre mouvement des personnes, produits, services et investissements au Canada. Ces barrières et restrictions sont coûteuses, elles rendent les marchés canadiens moins efficaces, en plus d’éroder les droits fondamentaux des Canadiens. Établir le droit des Canadiens de se mouvoir, de travailler et de faire affaire n’importe où au Canada serait l’aboutissement longtemps attendu du pacte de nos Pères Fondateurs, qui, en 1867, entendaient fonder une grande nation commune pour tous les Canadiens.

Le devoir national

Les mesures et politiques provinciales et fédérales qui entravent le commerce sont extrêmement coûteuses sur le plan économique. Mais il y a bien pire. Ces mesures et politiques affaiblissent la nation canadienne. Wilfrid Laurier a dit : « Le Canada est libre, et la liberté est sa nationalité. » Quand les gouvernements empiètent sur notre droit à la mobilité, sur notre droit de gagner notre vie et d’utiliser nos talents comme bon nous semble n’importe où au pays, ils ne font pas que nous appauvrir et nous rendre moins libres. Ils font de nous des adversaires et non des alliés, des étrangers et non des concitoyens.

La responsabilité économique

Les raisons économiques d’agir sont également importantes et nombreuses. Il n’y a aucune raison d’avoir des obstacles au commerce et à l’activité économique entre les provinces simplement parce que les règles nationales les interdisant n’ont jamais été adoptées. Si ces barrières sont érigées avec pour intention de rendre une province ou territoire plus riche en appauvrissant les autres, elles faillent généralement et nous en souffrons tous. Seulement, dans un tel contexte, la province ou territoire qui refuse d’ériger de telles barrières est plus perdante que les autres. Seul le gouvernement fédéral est en mesure de s’assurer que le Canada ait un marché domestique ouvert, efficace, prévisible et stable où tous les Canadiens sont traités de façon juste et équitable.

Le pouvoir légal

Comme dans toute fédération bien pensée, la Constitution canadienne donne au gouvernement fédéral le pouvoir de réglementer les échanges et le commerce et ce, de façon claire et ferme. Les Pères de la Confédération ont clairement voulu faire du Canada un espace économique unique afin d’éviter un enchevêtrement nuisible de mesures protectionnistes. Et le système judiciaire a généralement soutenu cette vision. Seul un manque de volonté de la part du gouvernement fédéral empêche l’exercice vigoureux de cette prérogative fédérale claire. Il est plus que temps pour le gouvernement fédéral d’introduire une loi cadre pour s’assurer qu’aucun gouvernement provincial ou territorial n’impose des règles ou politiques qui limitent indûment le libre mouvement des biens, services et capitaux, et qui donnerait aux individus des remèdes clairs et efficaces contre de telles limites.

Le temps d’agir

Si le Canada est notre domicile commun, aucune pièce ne devrait nous y être interdite. Le gouvernement fédéral a le pouvoir et le devoir de nous protéger contre de telles mesures.

Dans le discours du Trône de 2007, le gouvernement conservateur a promis d’envisager « des moyens d’utiliser le pouvoir fédéral de réglementation des échanges et du commerce pour assurer un meilleur fonctionnement de notre union économique, au profit de l’ensemble des Canadiennes et des Canadiens » et en 2008, la plateforme électorale du Parti conservateur promettait d’utiliser l’autorité du gouvernement fédéral si les obstacles au commerce, à l’investissement et à la mobilité existaient encore en 2010. Ces barrières sont toujours en place aujourd’hui.

Ce pouvoir fédéral existe. Les barrières au commerce domestique continuent d’exister. La vision historique ainsi que la responsabilité présente sont claires. Pourquoi les Canadiens doivent-il encore attendre pour faire valoir leurs libertés dans ce domaine crucial? Qu’attend le gouvernement pour agir?

 

Tags: John RobsonRobert Knox

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