If Canada eliminated internal trade barriers, the country could see an injection of up to $200 billion into the economy, but Alberta seceding could risk costly new trade divisions, according to a new economic report. Authored by University of Calgary economics professor Trevor Tombe and commissioned by the Calgary Chamber of Commerce, the report highlights how Alberta and Canada are tied economically. “Internal trade barriers have long plagued our economy, compromised our productivity and prevented us from being our own best customer,” said Deborah Yedlin, president and CEO of the Calgary Chamber of Commerce, in a statement. “At a time when Canadian businesses are confronting new barriers abroad, reducing barriers between provinces and territories is increasingly important to strengthening Canada’s economic resilience.” Tombe, using federal estimates, says removing interprovincial trade barriers and labour mobility could add an estimated $5,100 per person to Canada’s gross domestic product (GDP). There is more than $500 billion in goods and services currently crossing provincial and territorial boundaries every year. The report also found that 330,000 Alberta jobs, which is about 13 per cent of the provincial workforce, rely on exports to other provinces, which generate $78 billion in income for local workers and businesses. The majority of that comes from transportation, manufacturers, hospitality and agriculture. Trade involving Alberta supports roughly 800,000 jobs across the rest of Canada. “Alberta’s economic strength is built on our ability to trade freely with customers and businesses across Canada,” Yedlin said. “Our focus should be on removing the obstacles that stand in the way of this trade, not creating new ones.” Costed reports on independence released The pro-independence Alberta Transition Council (ATC) has released two costed reports it believes show Alberta easily affording a way to become an independent country. Both reports, authored by co-lead Dennis Kalma, estimate transitioning Alberta to an independent nation would cost roughly $5 billion over three years. The ATC’s fiscal model believes assuming federal responsibilities and operating costs, Alberta would still hold an annual surplus between $22.2 billion and $32.1 billion. That number drops if there are higher debt servicing costs, corporate tax declines and further borrowing rates, with a surplus of $8.7 billion to $18.6 billion. But the report leaves out any impacts on trade agreements with other countries, employment opportunities or market access growth if Alberta were to go at it alone. Kalma calls it narrow fiscal estimates, rather than an economic forecast.
