Agreement on Internal Trade

Agreement on Internal Trade
Name	Agreement on Internal Trade
Type	Interprovincial trade agreement
Date signed	1994
Parties	Canada; Alberta; British Columbia; Manitoba; New Brunswick; Newfoundland and Labrador; Nova Scotia; Ontario; Prince Edward Island; Quebec; Saskatchewan; Northwest Territories; Yukon
Succeeded by	Canadian Free Trade Agreement

Agreement on Internal Trade

The Agreement on Internal Trade was a 1994 interprovincial and interterritorial arrangement among Canadian jurisdictions aimed at reducing barriers among Canada's subnational economies. It sought to harmonize procurement, labour mobility, and standards while preserving provincial and territorial constitutional authority linked to the Constitution Act, 1867 and the Canadian Charter of Rights and Freedoms. Negotiated by Premiers and first Ministers alongside ministers from portfolios such as trade and industry, the agreement reflected prior initiatives like the Macdonald Commission recommendations and built on disputes adjudicated in forums such as the Supreme Court of Canada.

Background and Objectives

The agreement emerged amid fiscal and policy debates involving figures like Jean Chrétien, Brian Mulroney, and provincial leaders including Ralph Klein, Mike Harris, and Lucien Bouchard. Motivations included responding to international instruments such as the North American Free Trade Agreement and domestic pressures visible in decisions by the National Energy Board and rulings like Reference re Secession of Quebec. Objectives included facilitating labour mobility akin to the accords between the Canadian Labour Congress and provincial counterparts, streamlining procurement similar to practices in the Government of Canada, and reducing trade-distorting measures identified by panels like the World Trade Organization's dispute settlement bodies.

Structure and Key Provisions

The Agreement was structured into chapters and schedules modeled on frameworks from agreements such as the Canada–United States Free Trade Agreement and later arrangements like the Comprehensive Economic and Trade Agreement. Key provisions covered procurement, where obligations resembled those under the New West Partnership; recognition of occupational qualifications influenced by bodies such as the Canadian Medical Association and Law Society of Upper Canada; and standards alignment touching regulators like the Canadian Radio-television and Telecommunications Commission and agencies including the Canadian Food Inspection Agency. The text included exceptions grounded in constitutional doctrines addressed in cases like R v. Crown Zellerbach and accommodated public policy objectives cited by jurisdictions such as Quebec and Alberta.

Implementation and Administration

Administration relied on intergovernmental mechanisms involving premiers, deputy ministers, and officials from entities like the Department of Finance (Canada) and provincial ministries of finance and labour. Implementation used committees comparable to the structure of the Council of the Federation and dispute panels patterned after trade dispute bodies such as those under the Agreement on Trade-Related Aspects of Intellectual Property Rights. Secretariat functions echoed practices at the Privy Council Office and included reporting comparable to provincial auditor practices like the Office of the Auditor General of Canada. Regular ministerial meetings and schedules sought to mirror coordination found in arrangements like the Atlantic Provinces Economic Council.

Dispute Resolution and Enforcement

Dispute procedures combined negotiation, mediation, and arbitration, drawing on models used by the International Centre for Settlement of Investment Disputes and domestic tribunals such as the Federal Court of Canada. Enforcement intersected with constitutional litigation paths established by the Supreme Court of Canada and administrative remedies similar to those managed by the Canadian International Trade Tribunal. High-profile disputes invoked actors like provincial attorneys general and affected parties including municipal authorities, unions such as the Canadian Union of Public Employees, and industry groups like the Canadian Federation of Independent Business.

Impact and Criticism

Scholars and interest groups debated the Agreement's effects on markets involving stakeholders such as the Canadian Manufacturers and Exporters and sectors represented by the Canadian Federation of Agriculture. Supporters cited reduced barriers in procurement and mobility with parallels to integration observed in the European Union's internal market, while critics from provinces including Quebec and organizations like the Bloc Québécois argued it eroded provincial autonomy. Legal commentators referenced decisions from the Supreme Court of Canada and policy analyses by institutions such as the Council of Canadian Academies to assess efficacy. Empirical studies by universities like the University of Toronto and think tanks such as the C.D. Howe Institute offered mixed findings on trade diversion, compliance, and economic benefits.

Amendments and Replacement (Canadian Free Trade Agreement)

The Agreement was amended over time and ultimately replaced by the Canadian Free Trade Agreement following negotiations involving premiers, ministers, and officials from jurisdictions including Ontario and British Columbia. The successor arrangement incorporated lessons from disputes connected to the Newfoundland Offshore Petroleum Board and policy coordination examples from the New West Partnership Trade Agreement. The Canadian Free Trade Agreement aimed to broaden coverage and strengthen enforcement mechanisms, reflecting input from stakeholders such as the Business Council of Canada, labour organizations like the Canadian Labour Congress, and constitutional interpretations provided by the Supreme Court of Canada.

Category:Canadian treaties Category:Trade treaties