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Premiers to talk trade

As premiers and territorial leaders gather in Prince Edward Island for their annual summer meeting this week, talk will turn again to barriers to trade that exist between provinces even as the country negotiates more free-trade deals abroad.

Saskatchewan Premier Brad Wall is leading the push for fewer internal trade barriers.

Wall lists trade irritants, such as the fact that companies outside Ontario face a 10% premium if they want to bid on procurement in that province.

Saskatchewan is also engaged in a trade battle with Quebec. Saskatchewan argues Quebec is blocking the import of dairy products blended with canola.

Saskatchewan won at the dispute resolution tribunal, but Quebec is appealing.

And Wall is frustrated.

"It just highlights that the current agreement on internal trade — it's not sufficient. We could do something much bolder. We can have a Canada free-trade zone. I think this makes common sense for Canadians everywhere."

This internal discussion comes just as the federal government released the details of its trade agreement with Europe.

It includes opening up local construction projects to European companies and allows the provinces to trade with Europe more easily.

Prince Edward Island Premier Robert Ghiz, who is chairing the meeting, says there's a lesson there for the provinces.

"Let's look at the trade agreements that we have with other countries. And if those trade agreements make it easier to trade with a different country, compared to another province, then we've got a problem," Ghiz said.

Ontario Premier Kathleen Wynne says she's open to the idea of a balance between lowering trade barriers while still protecting the interests of local industries.

She points to the difficult negotiations over Canada's dairy industry during the free-trade talks with Europe.

"It will be the same discussion between B.C. and Ontario, for example, on wine. How do we advance the overall cause so that the B.C. wine industry can thrive and Ontario's industry can thrive?" asked Wynne.

Meanwhile, the premiers will be joined, informally, by the U.S. and Chinese ambassadors to Canada, as well as Canada's ambassadors to those two countries.