Winning from interprovincial trade: The talent pipeline will be key
Unlike international trade, services make up a larger share of the value of interprovincial trade. For example, according to Statistics Canada, in 2021, the interprovincial trade associated with the computer systems design and related services sector (aka IT services) was worth $11.3 billion. Architectural, engineering and related services interprovincial trade was valued at $6.9 billion. Data processing, hosting, and related services generated $6.7 billion worth of interprovincial trade.
In total interprovincial trade in services was worth $247 billion in 2021 while goods trade was worth only $204 million.
So who wins if all the barriers are thrown down? If all professionals face no barriers moving from province to province? If regulations disappear and everything is completely seamless? Ontario is well positioned to win in a a big way. They already generate $114 billion in interprovincial services revenue - or nearly half the amount in the entire country. Canada’s largest province generates tens of billions in interprovincial export revenue in sectors such as ICT, engineering, data processing, finance and insurance, - $1. 7 billion just in management, scientific and technical consulting services. Billions in head office interprovincial export revenue and don’t forget wholesale trade exports to other provinces which was worth $24 billion to the Ontario economy in 2021.
I was in two meetings recently where people talked about how hard it is to find an accountant these days in New Brunswick.
That got me thinking. When it comes to interprovincial trade - in a world with no borders - talent and entrepreneurship will rule. I had a meeting with Laura O’Blenis today - 90% of her consulting firm’s revenue is outside New Brunswick. Could her firm blossom under freer trade or will Ontario firms bulk up on international talent and then send sales teams from coast-to-coast?
If you strip away all barriers -physical, cultural, phycological, it truly comes down to quality and/or price and large firms in the big cities may have an advantage - particularly if they can horde the talent pipeline.
Ontario has 93% more post-secondary students per 10,000 population than New Brunswick. That province definitely has a leg up when it comes to immigration and it has disproportionate lobbying power.
If I was advising Premiers these days and economic development types - if you go all in on interprovincial trade you had better figure out where you will ‘win’. Trevor Tombe seems to argue you will ‘win’ from cheaper imports but moving even more from a producing to a consuming economy doesn’t sound like a recipe for success to me.
Mr. Campbell, while your article underscores talent as a cornerstone of interprovincial trade, it tends to favor a narrow view of what really drives prosperity. Beyond attracting high-caliber professionals, we must also support businesses and entrepreneurs who can build and engage talent that stays and works here. In New Brunswick, our abundant natural resources and skilled trades and entrepreneurial mindsets offer immense potential, potential that isn’t fully realized when we chase high-tech companies that bring little long-term prosperity due to limited local talent and a reliance on “cheap imported” skills.
We have much to learn from the Nordic countries, where stakeholder engagement models integrate a broad spectrum of talent, from university graduates to skilled tradespeople while leveraging natural resources to boost productivity. Their approach fosters sustainable economic growth and ensures that the benefits of development are deeply rooted in local communities.
A word to the wise: if our policies continue to favor a narrow definition of “talent,” we risk deepening regional disparities and stifling the full potential of our economy. Embracing a broader talent pool one that values natural resources, trades, and innovative stakeholder engagement is essential for long-term success. Thank you for your commitment to our communities David.