OTTAWA — The federal finance minister is not the only person Ontario’s government is attempting to smooth over relations with.

The Governments of Ontario and Quebec have formally launched negotiations aimed at eliminating restrictions on the free movement of goods, services, investment, and people between the two provinces. The negotiations are aimed at improving cooperation with respect to a number of common economic issues like energy management, economic development, trade promotion and support for manufacturing.

The provinces have appointed former federal Minister for International Trade Jim Peterson and former Quebec Finance Minister Michel Audet as their respective chief negotiators.

In March 2008, the Ontario and Quebec divisions of Canadian Manufacturers and Exporters undertook a survey of their members in both provinces with the objective of identifying restrictions on interprovincial trade, investment and labour mobility. The answers to the survey will try and provide suggestions for initiatives that could be undertaken jointly by both provincial governments in support of the provinces’ manufacturing sectors.

A total of 249 companies responded to the survey – 175 from Ontario and 74 from Quebec.

The survey was broken down into a number of different sectors and as far as transportation is concerned companies were asked if they experience any restrictions in transporting goods from one province to another.

The survey indicates that 11 percent of Ontario respondents and 12 percent of Quebec respondents report logistics problems.

Ontario firms saw difficulties in: Ontario’s restrictions on LCVs; Quebec’s regional load weight restrictions under Spring Thaw Regulations; requirement for a separate trucking license and special permit to haul in
Quebec; preference for French-speaking or Quebec-owned carriers; targeting by the Sureté du Québec; a union environment in Quebec; and requirement to prove even gas purchased in Quebec for miles driven in the province.

Quebec firms cited the following problems: Ontario requirement for fuel tax permits; different standards for trucking permits; Ontario’s restrictions on LCVs; and transportation delays and costs in Ontario.