The New Brunswick government faces accusations of adopting Trump style protectionism. A lawyer for an Ontario construction company made this claim during a historic hearing in Fredericton. The case marks the first time a panel has convened under the 2017 Canadian Free Trade Agreement.

According to a report from CBC News, Julmac Contracting Ltd. alleges the province discriminated against it in favor of local companies. The dispute involves four major bridge projects across New Brunswick.

The Core Allegations

Julmac claims the Department of Transportation and Infrastructure forced the company to use costlier materials and face stricter penalties for missed deadlines. The company also says the province took longer to review and approve its plans compared to local contractors.

Lawyers for Julmac state the province kicked the company off three of these projects after it filed the trade complaint. The projects include the Anderson Bridge replacement in Miramichi, the Mactaquac Dam bridge, the Centennial Bridge, and the Nashwaak Bridge in Fredericton.

David Outerbridge represents Julmac. He compared the treatment of his client to United States tariffs imposed on Canada. He called both actions variations on the same wrong headed idea.

Outerbridge noted New Brunswick has a poor reputation for open trade. The Canadian Federation of Independent Business recently gave the province a C grade for interprovincial barriers. This ranks New Brunswick ninth out of thirteen provinces and territories.

Inside the Hearing

The hearing features a panel of three trade lawyers from Ontario and British Columbia. Three other provincial governments are intervening in the case.

During the proceedings, Outerbridge questioned Darren Colford. Colford is a senior engineer with the province. Outerbridge asked Colford to confirm the department forced Julmac to resubmit technical blueprints multiple times.

Colford admitted he heard about the issue but hesitated on follow up questions. He told the panel he would need to check the record to find out exactly how often it happened.

Another Julmac lawyer questioned engineer Rémi Jalbert about design changes ordered by a provincial engineering firm. Jalbert said he did not know the reason for the changes.

Why This Matters for You

This case holds massive significance for businesses and workers across Canada. Ryan Manucha is a research fellow at the C.D. Howe Institute. He says this hearing proves the internal trade court is alive and well.

Manucha believes the panel ruling will interpret key concepts in the trade agreement for the first time. He says it gives other workers, businesses, and governments clarity as to how their cases unfold. This clarity encourages more companies to use the complaint process when they face unfair barriers.

Julmac is not seeking financial damages. The company simply wants a ruling that New Brunswick violated the trade agreement and a recommendation to treat external contractors the same as local ones.

Frequently Asked Questions

What is the Canadian Free Trade Agreement?

The Canadian Free Trade Agreement is a 2017 deal designed to reduce and eliminate trade barriers between Canadian provinces and territories. It ensures companies from one province can compete fairly for government contracts in another province.

Why is Julmac Contracting suing New Brunswick?

Julmac alleges the province treated them unfairly compared to local construction companies. They claim the government forced them to use more expensive materials and delayed their project approvals.

Will this lawsuit cost New Brunswick taxpayers money?

No. Julmac is not asking for financial damages. The company wants a formal declaration that the province violated the trade agreement and a commitment to fair treatment in the future.