Inter-provincial Trade and delivery within Canada

Canada refocusing on helping "province to province" commerce and this includes low cost package delivery across Canada for ecommerce.

Although international trade from Canada has been the primary focus of regulators, there is increased attention on ways for small and medium size businesses (SME’s) to grow within Canada.

Despite actual or pending trade agreements with over 40 countries, cross provincial burdens to business are impeding the development of intra-Canada commerce.

Canadian companies want to ensure they enjoy the same benefits as foreign companies who are gaining increased access via trade agreements. Canada's private sector is urging all levels of government to cooperate in the elimination of unnecessary inconsistencies and regulations.

Canadian Carriers to Consider For Domestic Shipping

• Dicom: A division of Royal Mail/ General Logistics Systems (GLS) that specializes mostly in large business to business customers. They are attempting to capture a greater share of business to consumer market.
• Purolator: A division of Canada Post and leading Canadian carrier.
• Nationex: A privately held firm specializing in business to business ground shipping in eastern Canada.
• TFI Carriers: A financial holding company of the wealthy Saputo family, TFI parcel carriers (representing around 15% of total revenue) include Canpar, ICS and , Loomis.
• Intelcom: Primarily serving major ecommerce sellers with independent "gig economy" drivers offering low cost parcel delivery.
• FedEx and UPS: Well known carriers offering ground and express across Canada

The regulatory term used most often with respect to internal trade is the Agreement on Internal Trade or AIT. This agreement is over 20 years old and signed at a time when Canada’s only major trade agreement was NAFTA. The limitations of AIT are primarily its focus on specific industrial sectors and a weak settlement dispute mechanism.

There is an emerging consensus in Canada that internal trade barriers hurt consumers, discourage foreign and domestic investment. Canadian companies invest more internationally than vice versa.

Helping Canada countries grow within Canada: One Country, One National Economy:

Beyond addressing trade rules and government procurement, Industry Canada is attempting to redesign the framework for trade in way not dissimilar from process agreements related to international trade treaties.

Jet Worldwide Canada welcomes more harmonized processes and regulations.

A priority for logistics providers is the harmonization of weight and dimension regulations across all provinces. Currently, permits in each province are required for all carriers who wish to do business to - or through - each province. Truckers have to manage varying standards for such things as aerodynamic fairings, length allowed for B-Train trailers, semitrailer configurations.

Canadian regulatory burdens are estimated to cost business over 30 billion dollars per year. Regulatory burdens - whether domestic or international - disproportionally affect SME’s.

An example of barriers to inter provincial trade: Canadian Companies must file annual reports in virtually every province and territory in which they operate.

Six Rules of Canada’s Internal Trade (AIT)

1. Non-discrimination for Canadian persons, goods, services and investments
2. Free movement across provinces and territories
3. No unnecessary obstacles to trade
4. Any obstacles must have legitimate reasons with minimal impact
5. Minimizing/ reconciling regulations
6. Information should be transparent and available

The proposal from Industry Canada would add four more principles. (It is always interesting how government seeks to simplify processes by adding wording!)

Four additional principles for Internal Trade:

1. Canada companies get the same benefit as foreign companies. There is a perception that foreign trade agreements can favour foreign companies over Canadian companies within Canada.
2. Free trade of goods across Canada
3. Alignment of regulations and/ or working for as much alignment as possible
4. Regular reporting on issues and progress with respect to open Canadian trade (such as the creation of internal trade barriers index).

Jet worldwide helps SME's find low cost parcel delivery solutions in Canada. Delivery within Canada remains an essential element for success for Canadian companies seeking global growth.