The following column was published in the Hill Times on June 8
By Stephen Laskowski
The Canadian trucking industry has been familiar with issues and challenges related to removing internal trade barriers long before it became a household term in Ottawa and popularized by media as a potential counterweight to U.S. tariffs and strategy to boost Canadian productivity.
Recognizing the importance of domestic trade and the role trucking plays in the economy, Ottawa and the provinces selected the trucking industry last year to be the test pilot sector to determine how to expedite the elimination of trade barriers in trucking and other sectors across Canada.
Unquestionably, there’s buy-in at the political and bureaucratic levels to move on this quickly and the motivation to do so has intensified in the wake of the trade war with the United States, and has followed by calls to diversify trade within and outside our borders.
But what is becoming apparent in the trucking industry – and starting to get noticed within some political circles and other private sectors – is this undertaking is not as straightforward as many hoped.
In true Canadian fashion, what seemed relatively unambiguous at the onset, got bogged down at all levels of government by processing challenges, regionalist protectionism, and good old-fashioned politics. Perhaps, Jean Philippe Fournier, a former adviser to Quebec’s minister of finance, summed it up best: “provinces will have to reduce their autonomy on some things.” Historically, that’s not typically an easy ask in Canada.
As Mr. Fournier rightly alluded to, we will have to make policy decisions beyond jurisdictional self-interest – for the good of the nation; and in doing so, acknowledge that what’s good for the country as a whole will benefit Canadians – especially amid the current economic climate and U.S. trade hostilities.
The enormity of this task should not be underestimated by stakeholders within the political and national policy domains, especially as it applies to such a fragmented industry like trucking, where many regulatory powers are held by the provinces and not the federal government.
The trucking industry laid out its infrastructure and interprovincial trade barrier plan where CTA itemized several national trade barriers which are impeding supply chains and slowing down economic trade. Some issues include: aligning and improving winter road maintenance standards; increased access to rest areas for truck drivers; completing work and expanding critical highway connections to trade corridors and border points; addressing oversize/overweight disparities and vehicle permitting support to ensure billion dollar projects are not held up; strengthening oversight and accountability for truck safety; and how a simple policy change between Quebec and Ontario will introduce productivity enhancements for retailers and the embattled auto sector.
So, what needs to happen now? Unified political fortitude to push through any noise that opposes such measures and the unwavering dedication to remain coordinated in these efforts while harmonizing regulations necessary for some of these changes to occur.
However, there is a term creeping into policy discussions being invoked as some sort of panacea to counter any regulatory or legislative slowdowns – “mutual recognition.” I want to be clear – while this makes sense for some sectors, you can’t mutually recognize regulations in trucking; you need jurisdictions to harmonize regulations so the supply chain can ship commodities and make appropriate equipment purchases with certainty, while remaining compliant with enforcement. This will require time and due diligence, including discussions in legislatures to prioritize these complex matters.
Prime Minister Carney has committed to introducing legislation to streamline trade by easing transportation restrictions across the country. But to truly increase efficiencies throughout the supply chain, and trucking specifically, the PM will need the commitment and political will of the premiers, the ministers of Transportation and mayors.
The provinces and municipalities could face extra costs associated with removing these barriers, but the federal government must be prepared to step up with the financial resources and support to make this a reality as quickly as has been promised.
Meanwhile, as important as removing trade barriers is for trucking, the responsible, law-abiding portion of our industry will never experience the full benefits of these potential efficiencies until all political levels finally address the overarching crisis of our industry – the underground economy and rampant culture of lawlessness that has taken over the trucking sector in many parts of the country.
Perhaps, with this new focus on productivity in our sector, we’ll finally see the political motivation to end the problem that ails us most and law and order will be restored.