And how important is trade with the rest of Canada for Alberta? Alberta imports from other provinces and territories goods and services for consumption, and intermediate inputs for Alberta’s production of goods and services. Using a computational model of the Canadian economy, we investigated the impact of higher trade barriers between Alberta and the other provinces. We simulated the impact of imposing 100 per cent tariffs on interprovincial imports into Alberta and 100 per cent tariffs imposed by other provinces on imports from Alberta. Our modelling assumes that Alberta maintains the Canadian dollar, and that the trade cost increases have no impact on the Canada-U.S. dollar exchange rate.

Source: National Post October 15, 2020 09:56 UTC