I get that, and like I said those types of things definitely exist, and yes some specific industry limits do bind sellers like with alcohol. We should ease up on some limits standardize the most confusing regulations where they were different for no good reason. But in terms of the scale of the problem, physical barriers and purely distance seems to be more of an issue to me.
A craft brewery in Vancouver needs aluminum and steel cans, the aluminum is forged in Kitimat, B.C., but the cans are made in either Calgary AB. or Everett, WA., because the can producers in Burnaby, B.C. only makes 473mL cans and can’t supply the volume of 355mL and 473mL cans the brewery needs.
The main reasons why the Everett supplier is more competitive is that the cans arrive more timely and reliably by train or truck because it doesn’t have to go through the mountains, new designs turn around quickly, it would have both lower production and delivery costs than Calgary, that a 25%-50% tariff might not even offset.
Or in another example, if bus manufacturer New Flyer Industries in Winnipeg, MB wanted to switch away from the US (despite 4 out of 5 facilities being located there), they would be avoiding all the vehicle parts manufacturers in Minnesota, Wisconsin and Michigan. If you look to Ontario for any company that makes heavy vehicle parts you might find a what’s left of Bombardier in Thunder Bay, or a little thing in Sudbury or North Bay or the Sault, but beyond that there’s no industry until you go as far south as Bracebridge, ON. Quebec’s industry is still further.
Yeah, those are both good examples of interdependent supply between us and Canada, where it makes sense to keep markets geographically together.
I’m more referring to artificial blocks in terms of provincial barriers put in place for political reasons, like my alcohol example. Historically, these were restrictions for tax reasons between Ontario, Quebec and western Canada, but recent (last 20 years) spats and competition for transfer payments have essentially cut off lumber, paint, car parts, raw minerals, etc between provinces as close as sask and Manitoba.
And that is on top of intangible services gradually being restricted more and more between provinces. As a remote worker and contractor, rules have tightened for me about working in multiple provinces simultaneously.
These measures aren’t there to balance economics, they exist because provinces compete more than they cooperate.
I get that, and like I said those types of things definitely exist, and yes some specific industry limits do bind sellers like with alcohol. We should ease up on some limits standardize the most confusing regulations where they were different for no good reason. But in terms of the scale of the problem, physical barriers and purely distance seems to be more of an issue to me.
A craft brewery in Vancouver needs aluminum and steel cans, the aluminum is forged in Kitimat, B.C., but the cans are made in either Calgary AB. or Everett, WA., because the can producers in Burnaby, B.C. only makes 473mL cans and can’t supply the volume of 355mL and 473mL cans the brewery needs.
The main reasons why the Everett supplier is more competitive is that the cans arrive more timely and reliably by train or truck because it doesn’t have to go through the mountains, new designs turn around quickly, it would have both lower production and delivery costs than Calgary, that a 25%-50% tariff might not even offset.
Or in another example, if bus manufacturer New Flyer Industries in Winnipeg, MB wanted to switch away from the US (despite 4 out of 5 facilities being located there), they would be avoiding all the vehicle parts manufacturers in Minnesota, Wisconsin and Michigan. If you look to Ontario for any company that makes heavy vehicle parts you might find a what’s left of Bombardier in Thunder Bay, or a little thing in Sudbury or North Bay or the Sault, but beyond that there’s no industry until you go as far south as Bracebridge, ON. Quebec’s industry is still further.
Yeah, those are both good examples of interdependent supply between us and Canada, where it makes sense to keep markets geographically together.
I’m more referring to artificial blocks in terms of provincial barriers put in place for political reasons, like my alcohol example. Historically, these were restrictions for tax reasons between Ontario, Quebec and western Canada, but recent (last 20 years) spats and competition for transfer payments have essentially cut off lumber, paint, car parts, raw minerals, etc between provinces as close as sask and Manitoba.
And that is on top of intangible services gradually being restricted more and more between provinces. As a remote worker and contractor, rules have tightened for me about working in multiple provinces simultaneously.
These measures aren’t there to balance economics, they exist because provinces compete more than they cooperate.