Understanding Concerns About Nova Scotia’s Free Trade and Mobility Act, Bill 36

The proposed Free Trade and Mobility within Canada Act (Bill 36) in Nova Scotia seeks to simplify the movement of goods, services, and workers between provinces. While the intention may be good at face value, it is dangerous and has many potential risks.

Reducing regulatory costs on business cannot be an excuse for undermining workplace standards and placing workers’ health and safety at risk. Legitimate provincial powers and responsibilities to regulate the public interest are critical for workers, consumers, and health, safety, and well-being. Internal trade discussions cannot be a Trojan horse for deregulation, weakening protections, and putting downward pressure on standards for workers and others. We also need to invest in public sector jobs in communities and can not underestimate the economic benefits of those jobs in community after community in our province.

We cannot and must not force through unthought-out radical changes without proper public debate and study. While we understand the government is looking for opportunities to show the public, it is acting in response to the US tariffs. However, the impact of the proposed changes cannot solely be about how to appease business and corporate interests, which have not been adequately studied and discussed. There are huge concerns about removing exceptions in the Canadian Free Trade Agreement and international trade agreement, and whether that will leave the ability of US and European multinational corporations to sue provincial governments.

It’s a slap in the face for unions and the lack of respect for workers in any discussions regarding eliminating interprovincial trade barriers. Sadly, only industry, business, and government seem to be included in conversations on internal trade liberalization and deregulation negotiations, and there is very little transparency and accountability in these discussions. It is important to note that there is no indication that the Nova Scotia government has conducted any impact analysis or reviewed its legal liabilities arising from this legislation. (Talking to Premier Ford does not count.)

The Canadian Labour Congress (CLC) has repeatedly warned that “mutual recognition” of provincial regulations, a key pillar of trade liberalization, risks creating a regulatory race to the bottom. For example, if weaker rules from other provinces replace Nova Scotia’s higher construction safety standards or public sector wage grids, workers here will pay the price. Employers cannot exploit interprovincial competition to undercut hard-won union protections, which are protections for all workers.

The harmonization of credentials without harmonizing benefits could accelerate the growth of gig work and temporary contracts. For instance, trucking companies might recruit drivers from provinces with lower training costs, depressing wages and compromising safety. About 35% of Canadian workers face precarious employment, a crisis that deregulation would worsen. Seasonal workers and others may be at risk, and we must do all we can to ensure worker protection.  

 The provinces must uphold International Labour Organization (ILO) standards on collective bargaining, anti-discrimination, and workplace safety, among other vital issues.
Prevent undercutting by establishing pan-Canadian minimums for wages, pensions, and benefits in all government-funded projects. Shield healthcare, education, and other essential public services from procurement rules prioritizing cost-cutting over quality jobs.
Expand the Red Seal program and create training funds nationally and provincially to help workers transition between provinces without eroding local standards.

Simply put, we can’t allow our fixation on internal trade barriers to distract us from investing in more made-at-home infrastructure, manufacturing, building public services, and the care economy and ensuring good green jobs for the future. Ottawa’s desire to prevent a return to COVID-era spending and find ‘no-cost’ responses to the tariff threat is inadequate to our challenges. Deregulation is far from a ‘no-cost’ solution.

We must focus on the real barriers to internal trade and labour mobility. Access to affordable housing, affordable $10 a day public childcare, and moving allowances/tax deductions matter more to workers’ ability to move for work than variation in occupational/professional licensing requirements. The lack of infrastructure capacity can distort internal trade in certain goods, such as pipelines for oil and gas, electricity interchanges for power, or highways and rail for shipping physical goods. Overcoming these barriers will require investment, not deregulation.

Bill 36 could hurt small Nova Scotia businesses. For example, local companies might struggle to compete if products from larger provinces are allowed here without extra checks. This could lead to job losses in farming, fishing, or manufacturing industries. Small businesses often cannot match the prices of big companies from other provinces. Workers in these industries might face layoffs or reduced hours.

Worker Protections Might Weaken

The bill says workers certified in other provinces can work here without getting Nova Scotia license requirements. While this sounds flexible, it could:

• Make it more challenging for locally trained professionals to find work.
• Reduce service quality if out-of-province workers are not familiar with Nova Scotia’s needs.
• Lower wages if too many workers come from other provinces.
• Ignore Nova Scotia’s specific safety rules. For example, our construction standards might be stricter than those of other provinces in handling coastal weather.

Safety and Quality Risks

Removing checks on goods and services could lead to:

• Unsafe products entering Nova Scotia if other provinces have weaker safety laws.
• Lower-quality services if workers are not held to Nova Scotia’s standards.

Loss of Local Control Over Rules

Nova Scotia could lose the power to set its own standards. Under Bill 36:

• Goods approved in other provinces automatically get approved here, even if Nova Scotia has stricter quality or safety rules1.
• For example, seafood packaging rules protect local ecosystems better than other provinces’ rules.
• We are concerned about public sector job losses resulting from Nova Scotia’s unilateral decision to give up public-interest inspections, certifications, and regulatory oversight.

Harder to Hold the Government Accountable

The bill blocks most lawsuits against the government related to this law. If the changes hurt workers or businesses, it might be impossible to challenge the government in court.

What’s Happening Outside the Bill

Across Nova Scotia, people have raised other worries about removing trade barriers:

• Farmers: Federal food inspections are still required to sell meat or dairy across provinces, and the bill does not change this. Small farms say this creates extra costs.
• Unions: Workers in trades like trucking worry that harmonizing rules could erase overtime pay or safety protections they fought for.
• Rural Communities: Jobs might move to cities or other provinces, leaving rural areas with fewer opportunities.

What Could Help?

To address these concerns, experts suggest:

• Protecting Local Standards: Let Nova Scotia keep stricter safety or quality rules if needed.
• Support for Workers: Training programs for people whose jobs are affected.
• Fairness Checks: Ensure other provinces open their markets equally to Nova Scotia goods and workers.

While more straightforward trade might help some businesses, the risks to workers’ jobs, safety, and local control need careful balancing.