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Simeon Mitropolitski

Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.

He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.

In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.

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14 August 2007

Canada: More provinces ready to join free trade

© 2007, IRED.Com, Inc., Simeon Mitropolitski

More Canadian provinces are one step closer toward eliminating intra-provincial trade barriers. Last year, two most dynamic provinces in terms of economic growth, British Columbia and Alberta, have decided to create a free trade zone within the federation. Now another one, the biggest in terms of population and economy, Ontario, is showing willingness to join this zone. Two more provinces, Manitoba and Saskatchewan, may become bridges for the free trade between the Pacific Ocean and the Great Lakes. Quebec, as usually, thus far is saying 'no', trying perhaps to take more from the bargain. The Atlantic Provinces, more isolated than ever, especially in case of Quebec's opposition, are looking mainly to the federal government to pay their bills and keep their population from total emigration toward West.

In its foreign relations Canada looks like a unitary state. At least officially, the foreign policy is in the hand of the federal government. In fact, some provinces, e.g. Quebec, have foreign missions that look exactly like embassies. In domestic affairs, however, Canada can't even officially pretend being a unitary state. Not only the provinces are sovereign in fields like education and healthcare, the fact which explains why studying in English in some provinces for some people is illegal despite the fact that the country is more than 80 percent Anglophone. The provinces have also gradually taken some discretionary powers in the field of economics. Having some rights to impose unilaterally preconditions for employment and also different standards for goods and services sold, they in fact turn Canada into a patchwork of different trade regimes.

Last year, two best performing provinces in terms of economic growth, British Columbia and Alberta, created a zone for free trade, investment and labor mobility. After an initial period of 2 years, many artificial barriers built during recent decades will have to be eliminated. Two provinces are eliminating also business subsidies as well as discriminatory governmental procurement, i.e. when one province allows only companies registered within its jurisdiction to take part in public offers. To illustrate this point, if so far a province can require provincial tests for medical doctors to practice in addition to federal tests this additional burden will be eliminated. Practices requiring registration within one jurisdiction within the zone, e.g. truckers, will be recognized by the other provinces taking part in the same zone.

From the very beginning, the new free trade zone was opened for all other provinces that accepted the same founding principles. Initially Manitoba, Saskatchewan, and Ontario, have expressed interest to study this offer. Now Ontario, the largest Canadian province in terms of population and economic and financial might, is explicitly saying it might join the zone at some point, with or without the other Canadian provinces. The first reaction of Quebec, another big province that undergoes a process of relative impoverishment vis-à-vis Canada, is rather 'no'. This is a quite surprising answer, given the Quebec's official position for establishing a free trade zone between Canada and the European Union. How different Canadian provinces will trade freely with Europe if they can't trade freely among each other?

Without Quebec, there will be no contiguous intra-Canadian trade zone from coast to coast. This explains partly why the Atlantic Provinces aren't quite enthusiastic about the whole idea. Much more important factor in their calculations, however, is the fact that they are much more dependent for their economic survival on the annual transfers coming from the federal government in Ottawa. These transfers, and not the eventual profits coming from free trade, are helping these provinces to meet the ends.

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See also the directory of companies providing real estate services in, and general real estate information of Canada, Alberta and British Columbia.

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