Supreme Court tells governments to fix interprovincial trade rules

The Supreme Court decision in the case of a New Brunswick man who gained national attention for violating the province's liquor laws was a message to the federal and provincial governments to fix interprovincial trade rules.The Court said that under the Constitution the provinces are fully able to control wine and spirit sales. It's up to them and the federal government, not the Supreme Court, to bring out about real free trade in Canada as has been proposed by a Senate committee and many other bodies, the judges agreed.David Lametti, Parliamentary Secretary for Innovation, Science and EconomicDevelopment, told the Commons after the decision was released that the route to free trade within Canada “resides in getting all of the provinces to sit down together and come up with a solution.”An internal free trade deal reached last year is the basis for ongoing talks with the provinces, he said. Ottawa and the provinces have a working group looking at the freer movement of beer, spirits, and wine across Canada, he said.The federal government respects provincial jurisdictions and a system based on collaborative and co-operative federalism.“The agreement will eventually result in the free movement of beer and spirits, but only when the working group reports and the provinces agree,” Lametti said.While many business groups bemoaned the Court's decision to leave the issue in the hands of governments, the dairy and poultry marketing boards welcomed it.“We want to clearly state that milk, dairy products, eggs and poultry can, and are traded between provinces to respond to market demand,” the boards said in a joint statement. “We are pleased that the Supreme Court has restored some certainty about various regulations of trade in place in Canada, including the validity of supply management.“This case validates the findings of previous court cases on interprovincial trade regulation of various agricultural and food products. Federal and provincial governments will continue to have the ability to cooperate on the regulation of interprovincial trade.”The Canadian Federation of Independent Businesses said the Court decision at least “pushes the needle in the right direction. “We are concerned that the provinces continue to stand behind an archaic principle that flies in the face of everything their internal trade agreement stands for,” said Corinne Pohlmann, CFIB senior vice president of national affairs. “We should be able to move and sell goods and services as easily between provinces as we do with other nations, and businesses should be able to work and prosper in many provinces without being held up by costly, excessive regulations.“It is now up to the provinces to use the channels they developed, such as theAlcoholic Beverages Working Group established as part of the Canadian Free Trade Agreement, to come up with solutions to eliminate the barriers to the free flow of goods within the country,” added Pohlmann. “We are calling the provinces to get their act together and break down the barriers, and ensure that real free trade is possible across Canada.”The Canadian Vintners Association called the decision a missed opportunity.President and CEO Dan Paszkowski said, “Removing restrictions would have opened the door to allowing consumers to order wine for direct delivery to their home from any Canadian winery located in any province.” Provinces should make “this choice available to their citizens.”The Canadian Chamber of Commerce said it was disappointed the Supreme Court “missed an important opportunity to take a historic step toward freer interprovincial trade.”Its decision “will only reinforce most of the barriers that currently impede trade within Canada, driving up business costs, and hurting Canadian consumers.At a time when businesses are already facing challenges and uncertainty, a broader interpretation would have eliminated many of the protectionist practices that stand in the way of their ability to grow and prosper.“In the wake of this decision, it is critical that the federal, provincial and territorial governments redouble efforts to modernize the rules governing interprovincial trade through the Canadian Free Trade Agreement.”Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.