Manitoba's Finance Critic says it's time to work together and unleash the province's economic potential.
In an op-ed submitted to PembinaValleyOnline, Lauren Stone, says U.S. President Trump's initial February 1st tariff deadline should serve as a wakeup call, adding it's time to pivot and diversify our export markets and attract investment to Manitoba.
"The United States has shown that with a single stroke of a pen, they can devastate Canada’s economy," said Stone during a follow up interview.
Despite the 30-day reprieve from across-the-board tariffs on Canadian imports, Stone says the threat still isn't over. President Trump announced 25 per cent tariffs on steel and aluminum imports to the U.S., including from Canada, on Monday. As well, Stone noted, the USMCA free trade agreement will be renegotiated over the next number of months and trade tensions will remain high.
"What I am essentially calling for is the NDP (government) and (federal) government to have strong leadership and to start looking at ways for Canada to limit our reliance on foreign markets," she stated.
According to Stone, Manitoba exports approximately $15 billion worth of goods to the United States annually, and the U.S. accounts for 46% of Manitoba’s total agri-food exports.
"Obviously, I am against this trade war. It's going to hurt Canada and Americans alike, both consumers and businesses. We have a highly integrated supply chain with the United States, but there's things Canada and, specifically, Manitoba can do to start unleashing our economic potential.
One of those ways, noted Stone, is the cross-Canada elimination of interprovincial trade barriers.
"Our reliance on foreign markets has grown significantly over the years, where it is often cheaper to import goods from half a world away, transported by sea, rail and truck, than it is to domestically produce," she explained in her op-ed, adding there are more restrictions on interprovincial trade than intercontinental. "Differing environmental regulations, licensing requirements, labelling requirements, health and safety legislation, tax policies, alcohol taxes, trucking restrictions, among a host of others. These barriers increase costs for businesses and consumers. This is a problem, and this is exactly why Canada is in the predicament we are in. The Canadian Federation of Independent Business has stated that removing barriers could boost the economy by up to $200 Billion annually."
Stone believes this could include creating a national trade agreement or having each province hammer out their own deals with each other.
"One of the things the PCs signed on to a number of years ago was the New West Partnership, and I think those are opportunities we can expand on, the success of that and look at ways to start breaking down these barriers as a country but, as I mentioned, it takes strong leadership.
Second, Stone is calling on government to, in her words, quit the anti-business rhetoric.
"We need to foster a better business environment. Tax competitiveness has been significantly weakened by the Trudeau Liberals over the past number of years and more recently by the Kinew NDP. Ideological decisions like carbon taxation, federal land use limitations, and regulatory red tape has made it increasingly difficult to start or expand a business. The job killing payroll tax, that penalizes companies that hire more Manitobans, needs to be eliminated. Labour laws that trample worker’s rights and restrict labour mobility need to be reformed. Education property taxes and high personal income taxes – are all impediments to economic competitiveness and job growth in Manitoba."
And finally, Stone says processes need to be streamlined in order to foster economic growth.
"Manitoba has great economic potential, and we need to unleash it. Not only can we be a powerhouse in agriculture and manufacturing, but we have an abundant reserve of resources for energy and critical minerals. Unfortunately, we are heading in the wrong direction. In the last year, Manitoba has dropped to next to last in Canada for dollars devoted to mining, energy and forestry projects. The NDP has supported the LEAP manifesto and signed onto the Federal “30-by-30 plan” to take 30% of land out of consideration for development or production by 2030. This will limit our ability to unleash our economic potential and hangs a “closed for business” sign on Manitoba. Manitoba should immediately pivot away from these commitments."
Over the last few months, Stone says she's also been calling on Manitoba's NDP government to conduct an economic impact analysis on these potential tariffs. She noted, she is also calling for cross-party collaboration in tackling these concerns through a non-partisan committee that would ensure all voices are being heard around the table.
With files from Lauren Stone