Canada's trade deal with itself now in effect, as EU deal waits

July 1 was supposed to be not only Canada's 150th birthday, but the day that two wide-rangingand interrelated trade deals kick in.

Canada's agreement with the EU has stalled, but a domestic deal coveringtrade in goods and services between provinces is still on.

"This agreement is the most ambitious trade deal ever to cover Canada," Economic Development Minister NavdeepBains said in a press release Thursday,calling the deal "historic" and saying it "leads to a better Canada."

But that better Canada is coming slowly. So slowly thatit's unclear very many Canadians will notice any difference in the early days of the agreement.

• First cheese, now drugs: More disputes and delays for Canada-EU trade deal

The full text of theCanadian Free Trade Agreement (CFTA) came outlast April.

It appliesto all interprovincial trade, but and it's a rather bigbut a detailed list of exemptions was negotiated foreach provinceand territory.

Thelist for some is long, outliningmanysensitivities and priorities. For others, the list isshorter, but certain items arebroad enough to be significant.

• 'Canada is open':Interprovincialtrade deal a renewed push to drop barriers
• 5 things to watch in today'sinterprovincialtrade deal

Business groups believe the CFTA has potential. But very little'sbeen fixed yet.

There arenew processes for harmonizingthings like transportation safety rules and professional credentials. Anew dispute resolution system has been establishedto sort out cross-border grievances.

But the arrival of July 1 didn't throw a switch and standardize food packaging, energy efficiency standards or the myriad of other discrepancies that cause headaches for businesspeopletrying to expandnationally or move between jurisdictions.

Even when common standards are worked out, any province that doesn't like it has the right to opt out.

Free the beer? Not yet

CBC News requested an interview with New Brunswick's Roger Melanson, the provincial minister now chairingtalks between provinces and territories to implement the measuresagreed upon so far.

His office sent a statement.

"I am committed to ensuring its implementation is smooth, and that its benefits flow to all Canadians," the statement said.The reduced barriers help "increase choice for consumers, lower costs for public contracts, and create more jobs for Canadians," it said.

Some of the thorniest issues, such as Canada's patchwork of restrictionsfor beer, wine and alcohol sales, remain unresolved.

• 'Ahuge economic opportunity': trade barriers at stake inborder booze case

Four working groups were announced in Aprilto:

• Report back within a year on options for liberalizing alcohol distribution and sales.
• Report back within six months on how financial services might be covered.
• Boost trade in the fish sector.
• Develop options within six to 12 months todevelop the food sector in the territories.

Nearly three months on, Melanson's statement this week said the working groups haven't yet been finalized. It's unclear whether the timinglaid out inApril still applies.

CETAforced open government contracts

Provincial ministers were compelled to drop some barriers while staring downa deadline.

Large provincial and territorial government contracts will soon be open to European bidders under theComprehensive Economic and Free Trade Agreement that Canada negotiated with the EU.

Under the EU deal, foreigners could have had more access to Canadian government contracts than Canadians from other provinces.

The interprovincial dealfixed this.

Out-of-province bidders can now compete on goods contracts above $25,000. That'sa lower thresholdthan the one set for European companies.

CFTA also opens up contractingfor Crown corporations like energy utilities.

The interprovincialdeal was timedto kick inthe same day the EUdeal starts to apply.

But the EU deal's now held up.

• Canada-EUtrade deal's July 1 target threatened by new cheese dispute

While it's not the biggestsnag slowing upCETA's implementation, Europeans are concerned that some provinces aren't opening up their procurement on the timetable they were expecting.

Proof of compliance?

Canada's approach seemsto be tofix a date for CETA's implementation first, and then change the required regulations. Butthe EU wants to see the regulatory changes, particularlyfor Ontario and Quebec,before it agrees to a date.

Potential European bidders watch municipal and provincial infrastructure announcements such as arecentcontract byMetrolinx, the Greater Toronto Area's transit authority with interest.

Future sole-source contractscould violate the open biddingthe EUbargained for.

CBC News has been askingthe federal trade department for information about theseregulatory changes in order to confirm provinces are ready to comply. The departmentsaysall the jurisdictions support CETAand have committed to making thenecessary changes tostatutes, regulations or policies.

Negotiating and ratifying trade deals falls under the jurisdiction of the federal government. But provincial governmentswere consulted extensively on CETA, because if provinces failto comply, the government of Canada ison the hook.

"Provinces and territories continue to be important partners," the trade department said in a recent emailed statement."Government of Canada officials are in close contact with colleagues in all provinces and territories to monitor implementation andhave received assurances from them that they are taking the necessary steps forCETA'sprovisional application."

Trudeau addresses CETA delays

7 years ago

Duration 1:34

PM Justin Trudeau responds to the delays at implementing the free trade deal between Canada and the E.U.