New Brunswick, Newfoundland sign free trade agreement

New Brunswick has signed a memorandum of understanding on trade with Newfoundland and Labrador.

The New Brunswick and Newfoundland and Labrador governments signed a memorandum of understanding on free trade and labour mobility on Thursday, one week after New Brunswick signed a similar agreement with Ontario.

The agreement seeks to reduce interprovincial barriers and improve the flow of goods and services between the two Atlantic Canadian provinces, according to a news release from the New Brunswick government.

Newfoundland and Labrador is New Brunswick’s fourth-largest trading partner.

“We’re working to ensure that all products, services and credentials that are approved by Newfoundland and Labrador are automatically recognized by New Brunswick and vice versa,” said Premier Susan Holt in the release. “Newfoundlanders and New Brunswickers have long been good friends, and now we will be great trading partners.”

Newfoundland and Labrador Premier Andrew Furey said the new agreement will help advance infrastructure projects and promote internal trade.

“This partnership reflects the shared commitment of our two provinces to build a more connected Atlantic Canada for the betterment of our residents and economy,” Furey said in the release.

The memorandum of understanding between New Brunswick and Ontario also seeks to improve trade between the two provinces.

“Ontario is New Brunswick’s second-biggest trading partner, and we are excited to be building on the positive momentum to reduce internal trade barriers across Canada,” said Holt last week. “Today’s signing of this bilateral memorandum of understanding commits both jurisdictions to enhance direct-to-consumer alcohol sales and improve interprovincial labour mobility.

“It will also encourage the free flow of goods, services and investment, all while maintaining and strengthening public safety.”

In recent months Holt has proposed an Atlantic free trade zone in response to the ongoing tariff situation with the United States. The zone would allow for the free trade of goods, services and labour among New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador.

Holt said discussions were still ongoing with the premiers of Nova Scotia and Prince Edward Island for similar agreements, when speaking with reporters on Thursday.

Holt said the memorandum of understanding with Newfoundland and Labrador held exceptions for parts of that province’s seafood industry, along with New Brunswick’s forestry sector.

“Premier Furey and I, we have identified the pieces that our people are interested in keeping to ourselves,” said Holt. “We’ve moved forward to knock down the barriers to everything else.”

Holt said both provinces have also made a formal request to Ottawa for the removal of regulations preventing Newfoundland and Labrador crude oil from being processed in New Brunswick.

-With files from CTV Atlantic’s Nick Moore

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