The Agreement on Internal Trade (AIT) is a treaty between Canada`s federal, provincial and territorial governments. The aim of the agreement is to promote free trade between the various regions of the country, remove barriers to internal trade and investment, and create a level playing field for businesses operating within Canada.
To this end, the AIT includes provisions that prevent discrimination against businesses based on their origin, protect intellectual property rights, and ensure that public procurement processes are fair and transparent. Additionally, the agreement also seeks to reduce regulatory burdens by implementing mutual recognition of standards and certification.
The AIT was first signed in 1994 and has undergone several revisions since then. The latest version, which was signed in 2017, includes updates to address new challenges such as climate change, the digital economy and the need for improved labour mobility.
One of the key benefits of the AIT is that it helps businesses expand their operations across the country. Without the agreement, businesses would face different regulations and standards in each province and territory, which can create significant challenges and added costs. By harmonizing regulations and standards across the country, the AIT helps businesses to be more competitive and efficient.
Another important benefit of the AIT is that it helps to reduce the cost of goods and services for consumers. When businesses can operate more efficiently, they can offer products at a lower cost, which can be passed on to consumers. Additionally, by increasing competition across the country, the AIT helps to prevent regional monopolies and price-fixing schemes.
Despite the benefits of the AIT, some critics argue that the agreement does not go far enough to address certain issues, such as labour mobility and regulatory harmonization. Additionally, some provinces and territories have expressed concerns about losing their autonomy and ability to regulate in areas that are important to their local economies.
In conclusion, the Agreement on Internal Trade is an important treaty that helps to promote free trade and remove barriers between Canada`s various regions. By harmonizing regulations and standards, the AIT helps businesses to operate more efficiently, be more competitive, and offer lower prices to consumers. While there are some concerns about the treaty, overall, it has been successful in promoting internal trade and investment in Canada.