Premiers sign labour, trade accord at the Council of the Federation

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Jul 17, 2008, 3:25:38 PM7/17/08
to TILMA-BC
All,

As the Council of the Federation meeting in Quebec City prepares to
wrap there is new coming out that a TILMA like agreement for all of
Canada has been signed. I'm including 2 news posts - one is a
backgrounder on the Council of the Federation, and the second is a
round of of this week's media pointing in this direction, both
provided by Brent Patterson at the Council of Canadians in Ottawa.

We will have more news and analysis tomorrow once we can access the
actual agreement.

Best,
Carleen
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This past Tuesday, the Times and Transcript newspaper reported that,
“On the file of internal trading, (New Brunswick Premier Shawn) Graham
says a year of hard work will be rewarded by an important announcement
this week that may create Eastern Canadian internal trade deal similar
to the Trade, Investment, and Labour Mobility Agreement (TILMA) that
was struck between Alberta and British Columbia. The deal was
recognized as a strong model at last summer's meetings.” That article
can be read at http://timestranscript.canadaeast.com/news/article/354618.

The Globe and Mail is reporting this afternoon that, "Canada's
premiers signed a labour and trade accord on Thursday that will come
into force next year. 'This really required everybody moving ahead,'
Manitoba Premier Gary Doer said at a news conference. The signing
brought to fruition five years of work on achieving full labour
mobility within Canada. On the way into the meetings earlier in the
day, B.C. Premier Gordon Campbell said, 'I'm hopeful we will finally
knock down the barriers to labour mobility in the country.'... British
Columbia and Alberta struck their own accord in 2006 that essentially
recognizes education credentials in each province, allowing workers to
move freely across the B.C.-Alberta border and work in either
province. The two provinces have also removed layers of regulations
that have blocked the free movement of goods across their shared
border. Ontario Premier Dalton McGuinty and Quebec Premier Jean
Charest have been pursuing a similar goal for the past four years. But
progress on other fronts has stalled, partly because of the lack of an
effective mechanism to resolve trade disputes." The full article is at
http://www.theglobeandmail.com/servlet/story/RTGAM.20080717.wprems0717/BNStory/National/home.

In a Globe and Mail op-ed on Wednesday, British Columbia Premier
Gordon Campbell wrote, "As a result of the Trade, Investment and
Labour Mobility Agreement, we have achieved nearly full labour
mobility and eliminated trade barriers between our two
provinces....Today, our 13 provinces and territories prohibit citizens
from fully pursuing their goals and opportunities by not allowing them
to move freely within our national borders. That needs to change.
Today, Canada faces the consequences and opportunities of economic
shocks from other countries, most notably the United States, our
largest trading partner. It is time for us to act as one country."
That op-ed can be read at
http://www.theglobeandmail.com/servlet/story/RTGAM.20080716.wcomment0716/BNStory/National/.

Campbell also writes in that op-ed, "Why can't a registered nurse
practising in Ontario make a seamless transition to practising in Nova
Scotia?" But the Registered Nurses Association of Ontario issued a
media release today with RNAO Executive Director Doris Grinspun
saying, "These agreements are touted as innocent efforts to eliminate
inter-provincial trade barriers. The premiers may tell us right now
that investors won't have rights to sue governments. However, we are
concerned the steps they are taking today will subordinate public
policy to trade and investment priorities. Strengthening the AIT is
part of a deregulatory agenda that presents a profound threat to
Medicare and other social programs as well as the ability of
governments to pursue the public good." Their media release can be
read at http://www.newswire.ca/en/releases/archive/July2008/17/c5475.html

We are currently trying to obtain a copy of the agreement signed by
the premiers to offer a fuller analysis to you. But as we noted last
week, the Council of the Federation website does have a section on
"internal trade" which states, "In August 2007, Premiers announced
they are moving forward to strengthen the domestic trade between
provinces and territories by reducing barriers to trade flows.
Premiers also reaffirmed the critical importance of a stronger and
more effective national Agreement on Internal Trade (AIT) and, to that
end, endorsed a five-point plan dealing with Labour Mobility, Dispute
Resolution, Energy, Agriculture and Reconciliation of Regulations."
More on this can be read at http://www.councilofthefederation.ca/Internaltrade/internaltrade.html.
The five-point plan itself is outlined at
http://www.councilofthefederation.ca/pdfs/COMMUNIQUE_Jan28_eng.pdf,
and includes the point that, "Premiers endorsed a dispute resolution
system, including a tiered approach to monetary awards for failure to
comply with a trade panel’s ruling, which will ensure full compliance
and enforceability of Panel rulings under the Agreement on Internal
Trade."

It should also be noted that when the ministers of internal trade met
in Vancouver this past June, CUPE reported that, "Since the AIT was
first implemented in the early 1990s, compliance by provinces has been
voluntary. Yesterday, the Ministers decided to institute court orders
and monetary fines of up to $5 million for 'violations' of the AIT. As
with TILMA, decisions on whether or not provinces are in violation
would be rendered by private arbitration panels." The media release
from CUPE can be read at http://cupe.ca/communications/CUPE_to_Premiers_Bar.

More on this agreement can be read in Wednesday’s Montreal Gazette at
http://www.canada.com/montrealgazette/news/editorial/story.html?id=aed4e0da-8ada-4440-abe6-c519940fcd13.

To read analysis from the Council of Canadians on TILMA, please go to
our website at http://www.canadians.org/DI/issues/TILMA/index.html.

We’ll have more on this in the days to come.

---------------------------------------------------------------------------------------------------------------------------------------------------------------
As noted in a Council of the Federation media release, "As incoming
Chair of the Council of the Federation, Québec Premier Jean Charest
will host the 2008 Summer Meeting of the Council of the Federation on
July 16-18 at the Fairmont Le Château Frontenac in Québec City."

This meeting may be significant because when the Premiers last met in
January they issued a media release that stated, "Premiers directed
ministers to complete their negotiations to strengthen the Agreement
on Internal Trade for the summer meeting of the Council of the
Federation in Quebec City this July."

WHAT IS THE COUNCIL OF THE FEDERATION?

Their website notes that, "The Council of the Federation was created
by Premiers (in December 2003) because they believe it is important
for provinces and territories to play a leadership role in
revitalizing the Canadian federation and building a more constructive
and cooperative federal system."

AGREEMENT ON INTERNAL TRADE

The agenda for the Quebec City meeting holds little detail, although
their website does have noted under "key initiatives" a section on
"internal trade" which states, "In August 2007, Premiers announced
they are moving forward to strengthen the domestic trade between
provinces and territories by reducing barriers to trade flows.
Premiers also reaffirmed the critical importance of a stronger and
more effective national Agreement on Internal Trade (AIT) and, to that
end, endorsed a five-point plan dealing with Labour Mobility, Dispute
Resolution, Energy, Agriculture and Reconciliation of Regulations."
More on this can be read at http://www.councilofthefederation.ca/Internaltrade/internaltrade.html.

The five-point plan itself is outlined at
http://www.councilofthefederation.ca/pdfs/COMMUNIQUE_Jan28_eng.pdf,
and includes the point that, "Premiers endorsed a dispute resolution
system, including a tiered approach to monetary awards for failure to
comply with a trade panel’s ruling, which will ensure full compliance
and enforceability of Panel rulings under the Agreement on Internal
Trade."

It should also be noted that when the ministers of internal trade met
in Vancouver this past June, CUPE reported that, “Since the AIT was
first implemented in the early 1990s, compliance by provinces has been
voluntary. Yesterday, the Ministers decided to institute court orders
and monetary fines of up to $5 million for 'violations' of the AIT. As
with TILMA, decisions on whether or not provinces are in violation
would be rendered by private arbitration panels.” The media release
from CUPE can be read at http://cupe.ca/communications/CUPE_to_Premiers_Bar.

YELLOW MARGARINE IN QUEBEC

There hasn't been much in the news about this Council of the
Federation meeting, but as reported by the Canadian Press today,
"Quebecers will soon be able to eat something that other Canadians
have been consuming for years - yellow margarine. Quebec has been the
only province since 1987 where margarine has been required to be
white...Quebec's milk producers have already indicated they do not
plan to fight the decision. The modification, which was endorsed by
the Quebec cabinet on June 25, will be published in the province's
official gazette by the end of the month. The decision comes after the
Council of the Federation asked provinces to lift interprovincial
trade tariffs." This article can be read at
http://canadianpress.google.com/article/ALeqM5jSDgKscuoOU0gOovkgrOgOFfAw1A.

CARBON CAPTURE AND STORAGE

Additionally, a Farm Business Communications article reports that the
Council of the Federation meeting would be discussing carbon capture
and storage. This can be read at
http://www.grainews.ca/issues/ISArticle.asp?id=85115&issue=06022008&story_id=&PC=FBC.

THE COUNCIL OF THE FEDERATION TO VISIT CHINA

A Council of the Federation media release from this week states that,
“Canada’s Premiers together with the Canada China Business Council
announced today that they are planning a joint mission to China during
the week of November 3, 2008. The mission will visit Beijing,
Chongqing and Shanghai and will include Canadian businesses and
delegations from at least five jurisdictions.” Canadian Press is also
reporting today that, "Concerns about air quality and other pollution
have reached the highest levels of China's government, and Ontario is
in an excellent position to help address the issues, Premier Dalton
McGuinty said Wednesday. McGuinty made the comments in announcing that
he will lead a trade mission to China in October with an exclusively
green focus...McGuinty will then join other premiers as part of the
Council of the Federation, which will be visiting the Chinese capital
and the city of Chongquing." That story can be read at
http://canadianpress.google.com/article/ALeqM5g4eV_XgGDeta1z4XL5fMTndDtG3Q.

WATER

We should also be watching for any possible Council of the Federation
discussions on water. A May 30 Government of British Columbia media
release stated, "British Columbia will establish a secretariat to
support a new Western Water Stewardship Council, which will ensure
western provinces have a safe supply of water, Premier Gordon Campbell
announced today after the Western Premiers’ Conference. The Western
Water Stewardship Council will undertake work such as monitoring and
reporting; water supply assessment; demand management; aquatic
ecosystem health; education and outreach; watershed planning and
governance; and sharing information networks and systems. The council
will also explore the potential for developing a western drought
preparedness plan. Since watersheds cross provincial, territorial and
international borders, effective collaboration and coordination of
trans-boundary water issues is critical to ensuring the continued
growth and success of the West. Premiers noted the important role the
federal government must play in managing cross-border water issues
with the United States and urged the federal government to work
closely with provinces and territories to ensure Canadian water
resources are fully protected." That news release can be read at
http://www2.news.gov.bc.ca/news_releases_2005-2009/2008OTP0142-000842.htm.

Brent

Brent Patterson
Director of Campaigns, Organizing,
& the Blue Planet Project
The Council of Canadians
700-170 Laurier Avenue West
Ottawa, Ontario K1P 5V5
1-800-387-7177 ext. 291
bpatt...@canadians.org
www.canadians.org

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