TORONTO - Quebec and Ontario signed an agreement Monday to start talks to remove interprovincial trade barriers in an effort to help businesses -- especially the struggling manufacturing sector -- but the federal government needs to do "its share,'' said Premier Jean Charest.
Charest and Ontario Premier Dalton McGuinty agreed to begin negotiating an accord to strengthen the economies of both provinces by eliminating red tape and unnecessary regulations, saying provinces need to work together to meet global challenges.
"It's especially timely with this Canadian dollar now flying very high and the manufacturing sectors in Ontario and in Quebec coming under a great deal of pressure because of this dollar,'' said Charest.
"We will work together to create more economic growth, prosperity, wealth and while continuing to ask the federal government of Canada to do their share so that they are also supporting a sector of our economy that's under a great, great deal of pressure now.''
McGuinty touted the importance of removing interprovincial trade barriers, and like Charest, said it was crucial for Ottawa to also offer some direct help, especially for the manufacturing sector.
"Achieving this will reduce the regulatory burden on businesses and lower costs for consumers,'' said McGuinty.
"We can do some great things together, but we can do even more if we had the federal government coming to the table, duplicating some of our programs.''
Charest said he wants a chance to sit down with Prime Minister Stephen Harper and the other first ministers to tackle what he called a "crisis'' in manufacturing.
"A struggling manufacturing sector has repercussions for the entire economy,'' he warned.
Under the new deal, negotiators will look at harmonizing regulations that govern everything from the weight of trucks to health-care professions to find ways of making it easier for companies to operate in both Quebec and Ontario in hopes of increasing the $70 billion a year in trade between the two provinces.
"Given the high dollar, the price of oil, the sluggish American economy, the advent of globalization -- all of those have acted to have us take a new look at each other,'' said McGuinty.
"We are neighbouring provinces and we have powerfully intertwined economies. What more might we do for each other?''
Charest said Ontario was second only to the United States in terms of Quebec's trade partners, but noted trade between the two provinces was four times greater than trade between Quebec and New York state.
Ontario's opposition Conservatives and New Democrats said Monday that McGuinty should stop trying to blame Ottawa for everything and instead follow Quebec's lead in offering direct financial help to manufacturers.
Charest announced Friday that Quebec would provide $620 million over the next four years to help manufacturers cope with the rising dollar, including another $120 million in tax credits for worker training.
McGuinty and Charest also agreed Monday to hold a joint meeting of the Ontario and Quebec cabinets next spring.
