In a landmark case for Canadian internal trade, an Ontario-based contractor has brought a significant complaint against the New Brunswick government, claiming a breach of the Canadian Free Trade Agreement (CFTA). This dispute, the first of its kind to reach the country’s internal trade tribunal since the CFTA replaced the Agreement on Internal Trade in 2017, revolves around three critical bridge repair projects in New Brunswick, including the well-known Centennial Bridge in Miramichi.
Allegations of Discrimination
Julmac Contracting Ltd., situated in Acton, Ontario, alleges that the provincial government has shown bias against out-of-province contractors, favouring local firms instead. The New Brunswick administration, however, contests that this issue is not about trade practices but rather concerns the contractor’s failure to meet project standards. The crux of the matter lies in whether New Brunswick’s actions violate the CFTA, which prohibits discrimination against businesses and suppliers from other provinces.
David Outerbridge, representing Julmac, emphasised the importance of fairness during the opening statements of the tribunal hearing. “The question for the panel is whether the government of New Brunswick has honoured its promise under the CFTA. If there has been a breach, then the panel must provide a remedy,” he stated.
Long-standing Trade Barriers
The backdrop to this dispute highlights a broader issue affecting Canada’s economy. For decades, interprovincial trade barriers have posed significant challenges, leading to an estimated annual economic loss of around £92 billion. The Canadian Free Trade Agreement was established to facilitate smoother trade between provinces and territories and to help build a more resilient economy, especially in light of external pressures like U.S. tariffs on Canadian goods.
The panel hearing is being hosted at the University of New Brunswick’s Faculty of Law in Fredericton, featuring three legal experts: chair Valerie Hughes, Robert Deane, and Drew Tyler. They are expected to hear testimonies from legal representatives and various intervenors from provinces such as Nova Scotia, Ontario, and Saskatchewan.
Specifics of the Case
The dispute dates back several years, intensifying when New Brunswick’s Department of Transportation and Infrastructure ordered Julmac to vacate its worksites on the projects in February 2025. Prior to this, Julmac had filed a lawsuit in 2023, alleging unfair discrimination in its treatment compared to local contractors.
In particular, Julmac has pointed to the stringent requirements imposed on its use of temporary moulds for concrete structures. The company claims that it faced significantly higher standards than those typically applied to local firms, which resulted in added costs and operational challenges. “What we’re asking for is simply a level playing field,” Outerbridge reiterated, stressing that the company seeks equal treatment rather than preferential treatment.
Conversely, New Brunswick’s legal counsel, Mark Heighton, countered that Julmac’s performance issues were the root of the problem, not any discriminatory practices. He argued that there is no evidence of differential treatment when local contractors are compared to Julmac’s methods and approaches.
The Path Ahead
As the hearing progresses, both sides are preparing to present their cases, with the tribunal set to conclude its sessions by Friday. Following the completion of the hearing, the panel has up to 45 days to deliver its findings and recommendations.
Why it Matters
This case represents more than just a dispute over bridge repairs; it underscores the ongoing struggle for fair trade practices within Canada. A ruling in favour of Julmac could signal a significant shift in how interprovincial trade is managed, potentially paving the way for increased scrutiny of local contracting practices and the treatment of out-of-province companies. As Canada continues to grapple with economic challenges, the outcome of this case may have far-reaching implications for the future of internal trade and the integrity of the Canadian Free Trade Agreement.