As Atlantic Canada grapples with the implications of rising U.S. tariffs, the Premier of New Brunswick, Susan Holt, is advocating for the creation of a regional free-trade zone aimed at bolstering economic resilience. In a proactive move, Holt has reached out to the leaders of neighboring provinces—Nova Scotia, Newfoundland and Labrador, and Prince Edward Island—urging them to unite in establishing a “free-trade” area for goods and services.

However, not all provinces are on board with this ambitious initiative. Newfoundland and Labrador remains hesitant, driven by concerns over the impact on local industries. Deputy Premier Siobhan Coady has expressed particular apprehension regarding the implications for the province's largest breweries, Labatt and Molson, which could be adversely affected by increased competition from across the region.

Despite this hesitation, local business owners, like restaurateur Todd Perrin, are advocating for a more collaborative approach. Perrin emphasizes the interconnected nature of the food and beverage and hospitality sectors, which collectively employ tens of thousands in the province. “The 10,000-person food and beverage industry, and the 20,000-person hospitality and tourism industry are highly connected to what the Newfoundland and Labrador Liquor Corporation does,” he argues. “By not aligning with the rest of the country on trade, we’re jeopardizing our competitiveness in a rapidly evolving market.”

The debate is heating up as nine of the ten provinces have already agreed to lower some trade barriers. Supporters of the proposed free-trade zone believe that such a move could not only enhance regional cooperation but also make Atlantic Canada a more formidable player in the national and global economies. However, time is of the essence, as increasing tariffs from the U.S. emphasize the urgent need for a collective strategy to mitigate potential economic fallout.

As the discussions unfold, stakeholders across various industries are urging Newfoundland and Labrador to reconsider its stance. The outcome of this debate could have lasting implications for the economic landscape of Atlantic Canada, prompting leaders to weigh the risks and rewards of joining forces in this critical moment.