David Eby is re-upping calls for reduced interprovincial trade barriers as the year draws to a close and U.S. tariff threats near
Premier David Eby will be forced to confront significant economic challenges in the new year, including the threat by U.S. president-elect Donald Trump to impose 25-per-cent tariffs on all Canadian imports, as well as fallout from the recent cancellation and suspension of large-scale green energy projects.
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Speaking in a year-end interview with Postmedia, the premier reiterated calls for lowering of interprovincial trade barriers between provinces as a way to partly blunt the potential impact of Trump’s tariffs.
“I certainly think it’s a good idea to be talking as much about how we trade with Ontario and Alberta and Manitoba as well as trade with the Philippines and Vietnam and India, and there’s certainly opportunities for us to do that,” said Eby.
Overall, B.C. was given a “B” grade by the Canadian Federation of Independent Business in its annual report, released in July, on the status of interprovincial trade, but a dispute with Alberta over direct-to-consumer wine sales earlier this year indicates there is still room for improvement.
Jairo Yunis, a B.C. Business Council policy director and former director of B.C. and western economic policy at CFIB, said one example is that trucking in the province is essentially facing a five-per-cent tariff to bring goods into Alberta or other jurisdictions in Canada.
“There was an analysis done by the Macdonald-Laurier Institute, months ago, that calculated the average internal trade cost for the trucking industry in B.C. was around five per cent,” said Yunis.
“I know that there is a working group looking at a pilot project to mutually recognize all these standards and regulations across all provinces. So that’s definitely something that would remove some of these internal trade barriers in some of those sectors, specifically trucking.”
Eby also continued to defend his government’s efforts on climate action, stating that his oft-repeated adage that the people who say you can’t both protect the environment and grow the economy are wrong.
He acknowledged there have been some difficulties with the announcements over the past few months that mining company Fortescue is pulling out of its $2-billion hydrogen project in Prince George after the province balked at covering its energy demands, and the suspension of the $1-billion expansion of the E-One Moli lithium-ion battery plant in Maple Ridge after the company deemed there is a lack of demand globally.
Those projects would have created a total of 600 permanent jobs and greatly advanced the NDP’s goals to make B.C. a clean energy leader and hydrogen hub.
“We know that there is growing and intensifying demand for secure supplies of many of the things British Columbia can offer,” said Eby, specifically pointing to the ways B.C. can continue to be a critical trade partner to the U.S.
“We saw China restrict exports of critical minerals to the United States. These are minerals that are available, mined and produced in British Columbia already, and we can expand that. Around electricity, the United States has never needed as much electricity as they do right now from any source because of the demands of data centres related to artificial intelligence, among other demands.”
Addressing the B.C. Chamber of Commerce on Tuesday, Eby said he would be meeting with Prime Minister Justin Trudeau and his fellow premiers again on Wednesday to discuss Trump’s tariff threats.
He said the ongoing goals will be for all provincial leaders as well as the prime minister to keep driving home the consequences the tariffs would have on both sides of the border and to find ways to diversify trade to become less reliant on the U.S.
“We’ve opened additional trade offices in jurisdictions, especially around the Asia-Pacific, and what you will see is us redoubling those efforts to develop markets internationally,” said the premier. “We can’t be beholden to the decisions of a single administration.”
Yunis believes that while B.C.’s GDP growth is still one of the strongest in Canada and is expected to increase in both 2025 and 2026, the threat of tariffs and lack of new large-scale projects on the horizon could cause the province to lose its “competitive edge.”
As for priorities once the legislature resumes on Feb. 18, Eby said his government’s first task will be getting the promised grocery rebate out the door, which offers $1,000 for a two-adult family making up to $200,000 a year.
He also revealed that negotiations on a political partnership with the Greens and leader Sonia Furstenau are continuing, but would not reveal where progress has been made, only saying he feels good about how the talks are proceeding.
“The work that needs to be done, both in and outside the legislature, is really to stay focused on the priorities of British Columbians,” said Eby.
“Our intention is to govern with a stable majority for the full four years, and to do so wherever we can, working with anyone that wants to help us make this legislature work for British Columbians.”
The premier brushed aside concerns that the NDP should have called the legislature back immediately following the election, arguing it is necessary to be “deliberative” in how they focus on the priorities of British Columbians.