Although a new free-trade deal between B.C.and Alberta was praised in Monday's federal budget, Saskatchewan still has some doubts about the agreement.

The Trade Investment and Labour Mobility Agreement (TILMA) comes into effect on April 1. It will allow businesses, tradespeople and professionals to work and move back and forth across provincial borders with less red tape.

The federal government said the agreement is a model for reducing provincial trade barriers.

"This will help build our economic union and promote the free flow of people and goods across Canada," the budget plan tabled in Parliament Monday said.

However, Saskatchewan Government Relations Minister Harry Van Mulligen said a provision allowing businesses to sue governments makes the deal different from previous trade agreements.

Van Mulligen said he's also worried the agreement could force Saskatchewan's Crown corporations to compete with private firms from B.C. and Alberta.

The Saskatchewan government has its own telephone company (SaskTel), insurance company (Saskatchewan Government Insurance), natural gas company (SaskEnergy) and bus company (Saskatchewan Transportation Co.), Crown corporations that employ thousands and collectively pay tens of millions of dollars into the provincial coffers every year.

"The sections on Crowns is quite vague and that is something to be negotiated, but we are not entirely clear on what the end result of that might be," Van Mulligan said.

Van Mulligen said Saskatchewan is also concerned the deal could make it harder for provincial and municipal governments to make laws to protect the environment or limit development.

Others agree with Ottawa that extending the deal to other provinces would be a good idea.

"The hope is that TILMA spreads across the country," said Jason Clemens, a spokesman for the Fraser Institute, a Vancouver-based conservative think-tank. "We should be very optimistic that other provinces will join TILMA."