FREDERICTON — An Ontario construction firm told a three‑lawyer trade panel in Fredericton this week that New Brunswick discriminated against it on multiple provincial bridge contracts, an allegation the province disputes as lawyers wrapped closing arguments in a five‑day hearing.
Complaint tests the Canadian Free Trade Agreement
Julmac Contracting Ltd., led by president Derek Martin, is arguing under the 2017 Canadian Free Trade Agreement that New Brunswick put the company at a competitive disadvantage compared with local contractors. The matter is being heard at the University of New Brunswick and is the first proceeding of its kind under the current internal‑trade pact.
Julmac alleges repeatedly imposed design changes increased its costs and timelines, and that the province applied requirements to Julmac that it waived for New Brunswick firms. The company says those actions amounted to discriminatory treatment because Julmac is based outside the province.
"It's based on assumptions of what they're going to do going forward,"
The remark came from Derek Martin, who told CBC News he does not accept a recently improved grade New Brunswick received from the Canadian Federation of Independent Business for lowering trade barriers. He described the A grade as reflecting expectations rather than present facts.
What was argued before the panel
Julmac's counsel, David Outerbridge, told the tribunal the provincial government produced no evidence showing New Brunswick companies received less favourable treatment in the contract process. He pointed to the province's earlier D rating from the independent business group's report card two years ago as context for his client's complaint.
Mark Heighton, representing the province, countered that Julmac was attempting to convert what he described as poor project management of its bridge files into an internal‑trade violation.
| Item | Detail |
|---|---|
| Number of bridge contracts | 4 |
| Combined value | $83 million |
| Hearing length | 5 days |
| Venue | University of New Brunswick |
Local implications and next steps
The panel of three trade lawyers will decide whether the province breached its obligations under the agreement to treat out‑of‑province suppliers without discrimination. The outcome could affect how New Brunswick structures and administers future public contracts and influence procurement practices elsewhere if the decision sets a precedent.
- The case highlights tensions between provincial procurement discretion and obligations under interprovincial trade law.
- A ruling for Julmac could lead to changes in contract administration or potential remedies for the company.
- A ruling for the province would likely affirm the government’s current approach to managing these contracts.
Lawyers for both sides presented closing submissions on Thursday. The hearing is among the first practical tests of how the 2017 trade agreement will be applied to disputes between governments and non‑resident suppliers.
Reporting from Fredericton.
