Ontario-Quebec Trade and Cooperation Agreement

Ontario and Quebec have signed a Trade and Cooperation Agreement (the Agreement).  The Agreement, effective October 1, 2009,  is established in conjunction with the interprovincial Agreement on Internal Trade (AIT).  In the event of an inconsistency between the Agreement and the AIT, the provision that is more open shall prevail and shall be incorporated into the Agreement. Ontario and Quebec will establish government-wide regulatory policies based on a set of principles. These regulatory policies will help ensure that future regulations serve to minimize differences and duplication and avoid trade restrictions.

•  Financial Services

The Agreement contains a specific financial services chapter.  Under this chapter the provinces agree to undertake periodic reviews of legislation in a coordinated timeframe and to share information with the intent to promote harmonized approaches to regulation in a number of financial services areas including insurance. Automobile insurance regulation is noted as an exception to the Agreement.

The provinces will develop, within twenty-four (24) months, work plans which include:

• a draft reciprocal agreement that would allow Québec caisses populaires and fédérations and Ontario credit unions and leagues to do business in either province;

• insurance distribution regulation, including the harmonization of education requirements for insurance agents;

• the harmonization of classes of insurance;

• insurance business powers concerning deposit-taking;

The provinces also have agreed to give policy consideration to:

1. Ontario providing a public commitment not to, at this time, extend its approach to loan and trust corporations to the insurance sector; and

2. the federal government’s proposal to establish cooperative banks.