BOESSENKOOL: In Defence of Interprovincial Trade Barriers

Tearing down interprovincial barriers may be all the rage, but provincial level barriers actually serve some important roles in local and distinct provincial economies

Key Takeaways: 

• Interprovincial trade barriers can be a necessary tool for provinces to nurture nascent local industries, create jobs, and foster long-term economic development, even if initially seen as economically inefficient.
• These barriers can serve as a pragmatic defense against the overwhelming force of external economies of scale, so provinces can safeguard local services and businesses and prioritize local procurement. 
• Despite persistent calls for harmonized standards, the uncomfortable truth is that Canada's diverse local conditions and provincial preferences frequently necessitate a mosaic of distinct regulatory frameworks.

One of my rules about public policy is that if something is easy to do, it has probably already been done.