Sask report supports BC local government concerns about TILMA

[Stop TILMA!]

All,

I've included below two recent newspaper articles on TILMA. The first
is a piece from Kelowna about the junk food in schools legal opinion
and the second is from the Penticton Western News. In it a city
councilor says "the city has actually had to hire more staff to deal
with increased paper work from the agreement." "The irony is that this
is supposed to be deregulatory legislation," he said. "It be might
that for business, but not for us."

Also, in January 2008, "A Space For Cities In Trade Agreements" was
released by The Estey Centre for Law and Economics in International
Trade in Saskatoon, Canada. The report was prepared for 12 cities in
Saskatchewan, Canada.

This in-depth impact study concludes that trade agreements must
include exceptions for things that cities do to foster and enhance
their unique environment.

The report notes that although signatory Provinces to the TILMA have
stated that it is not their intention to interfere with municipal
autonomy, in the end, it is always the written agreement that matters.
"The text of the agreement is what will endure past governments' terms
in office and the text of the agreement itself contains no provisions
to support these reassurances."

The report highlights that although very little of what municipal
governments do affects goods or labour mobility, much of what they
does affect investment. "While cities have little jurisdiction over
trade in goods and labour mobility, the investment related provisions
of a TILMA-style agreement have the potential to impact the activities
of cities to a considerable degree."

Further, "...the activities of cities sanctioned in provincial
legislation could be challenged directly in the trade agreement's
dispute settlement system, or the existing provincial legislation
could be challenged and, if found not be in compliance with the trade
agreement, have to be changed - restricting the space cities have to
make policy (10)."
You can download a summary of the paper here: http://tinyurl.com/5mqdux
Or read the full report: http://www.saskatoon.ca/org/clerks_office/a_space_for_cities.pdf

Best,
Caelie


Trade agreement could place junk food back in B.C's schools
By Adrian Nieoczym - Kelowna Capital News - April 11, 2008
http://www.bclocalnews.com/okanagan_similkameen/kelownacapitalnews/news/17525129.html

A new legal opinion concludes B.C.'s attempts to limit the sale of
junk food in schools could be challenged under a trade agreement
between B.C. and Alberta.

Trade lawyer Steven Shrybman of Sack Goldblatt Mitchell was
commissioned by a coalition of labour and community groups to look at
the Trade, Investment and Labour Mobility Agreement and whether it
could be used to overturn public policy decisions such as banning junk
food in schools.

TILMA came into effect April 1, 2007 and is supposed to be fully
implemented by 2009. Its stated aim is to remove barriers to trade,
investment and labour mobility between the B.C. and Alberta.

Rules severely restricting the sale of junk food in B.C. schools came
into effect this year.
Shrybman concluded that under TILMA, an Alberta company could haul the
B.C. government or a board of education before a trade tribunal if the
company believed its business was affected by these rules.

The B.C. government's position is that as long as rules and
regulations treat companies from B.C. and Alberta the same, they are
not in danger of violating TILMA.
"I know they say that but that's not what they agreed to," said
Shrybman. "They didn't express it in the provisions of this agreement
so if that is their intent, the provisions of the agreement need to be
amended because they will not be read that way in our view by either
lawyers or adjudicators."

Shrybman said while there is an anti-discrimination clause in TILMA, a
different clause prohibits any obstacles to trade, investment or
labour mobility.

"Even in the case of fast food, Coca Cola...could easily structure its
business in a way that it's an Alberta investor with respect to its
distribution of its products in B.C. It could invoke this provision,"
he said.

"It's clear that they're not limited in any way to discriminatory
treatment."
The problem, he added, is that decisions about what kinds of measures
do or do not violate TILMA will be made, not by the legislature or
cabinet or the courts, but by private tribunals.

And while tribunals cannot force governments to repeal rules or
regulations, if a government does not implement changes directed by a
tribunal, the tribunal can impose a penalty of up to $5 million for
each violation.

"Decisions about public policy and law...those decisions should be
made by legislators," said Shrybman.

The director of trade policy for B.C.'s ministry of economic
development, Robert Musgrave, said the conclusion that a ban on junk
food in schools would violate TILMA is a misreading of the agreement.

Musgrave, who was also B.C.'s lead negotiator on TILMA, added that
while someone would have the right to bring a complaint before a
tribunal, that person or company would likely lose.

Meanwhile, the chairwoman of the Central Okanagan Board of Education,
Moyra Baxter, said, "it would concern me if I found out that we could
not have some rules about trying to eliminate a lot of the junk food
from schools because we now have this trade agreement with Alberta."

She added, however: "I think we need to have a wait and see. I think
if that happened there would be an absolute uprising and everyone
would come and say we have to get out of the TILMA agreement. If
something like this could happen what does it mean about other
things?"

adr...@kelownacapnews.com


Councillor voices concern over trade agreement with Alberta
Penticton Western News, 06-Apr-2008
By Wolf Depner

A city councillor is questioning claims that a controversial trade
agreement with Alberta has benefited the province one year after its
passing.

Coun. Garry Litke said the Trade, Investment and Labour Mobility
Agreement, in effect since April 1, 2007, has actually increased paper
work rather than reduce it
He made that statement after the Canadian Federation of Independent
Business praised the agreement.

"The provinces have made tremendous progress in harmonizing
regulations between our two provinces," said Laura Jones, federation
vice-president of Western Canada. "We are looking forward to 2009,
when even more of these unnecessary trade barriers will be
eliminated."

Since April 1, 2007, TILMA has opened up more opportunities for
Alberta and B.C. companies wanting to compete on government contracts;
eliminated costly interprovincial registration requirements for
commercial vehicles that cross the Alberta-B.C. border; and made it
easier for businesses to operate in Alberta or B.C. by eliminating the
requirement to open an office to take up residence in order to do
business.
Once TILMA is fully implemented, the agreement will create the second
largest trading block in the country behind Ontario.

But Litke said the city has actually had to hire more staff to deal
with increased paper work from the agreement. "The irony is that this
is supposed to be deregulatory legislation," he said. "It be might
that for business, but not for us."

Litke said it has also jeopardized buy local campaigns (now being
promoted by many voices as environmentally sensitive and economically
sensible).

Alberta suppliers and investors can claim discrimination when British
Columbians purchase goods or services from a local supplier based on
the fact they are local, he said.
"You have seen recently that this council often buys locally,
sometimes even if it costs more, because we understand that the local
business pays taxes and participates in this community in a number of
ways," he said. "Add to that knowledge of our municipal infrastructure
and the ability to honour warranties and provide fast service, you can
see why we might lean this way. I don't want us to lose that
discretionary power.

The agreement -- which has received considerable criticism from
municipalities -- may also be addressing an imaginary problem.
"I guess the argument that needs to be challenged is that trade
barriers were undermining our competitiveness.

The Trade Investment and Labour Mobility Agreement between British
Columbia and Alberta consists of a set of general rules and special
provisions that will apply to all legislation, regulations, standards,
policies, procedures and guidelines that affect trade, investment and
labour mobility. The agreement came into effect April 1, 2007, and
will be fully implemented by April 1, 2009.