New Brunswick Premier Shawn Graham says businesses are picking his province to set up shot because of lower taxes. (CBC)The Maritime premiers say they're in favour of co-operation but the three leaders drew the line at a regional corporate tax rate to attract investment.

New Brunswick Premier Shawn Graham, Nova Scotia Premier Darrell Dexter and P.E.I. Premier Robert Ghiz said during a joint CBC Maritime Noon radio interview that the provinces are working together on issues such as streamlining trucking regulations and trying to improve labour mobility.

But they were cool to the idea of a single Maritime corporate tax rate.

Graham said New Brunswick's move to an eight per cent corporate tax rate by 2012 is already attracting businesses, such as Ocean Spray, which announced in January that it would invest $90 million in a massive cranberry operation outside Rogersville.

"They chose to invest in New Brunswick earlier this year because of our plan for lower taxes," Graham said.

The two other provinces have corporate tax rates twice as high, at 16 per cent.

Eliminating deficit is priority: Dexter

Nova Scotia Premier Darrell Dexter says he will not match New Brunswick's eight per cent corporate tax rate. (CBC)Nova Scotia has a considerably smaller deficit and Dexter said eliminating it is his priority.

"In the coming year, we'd like to see the province move back into balance and in the coming year we're going to work as hard as we can to make that happen," Dexter said.

P.E.I.'s Ghiz was also cool to the idea of matching New Brunswick's eight per cent rate.

"We are three independent jurisdictions and right now the economies of our provinces are somewhat different," he said.

The decision by Nova Scotia and Prince Edward Island not to agree to a regional tax rate could actually help New Brunswick's premier when he makes his sales pitch to businesses.

Graham has used the tax comparison in business meetings as he tries to get companies to set up in New Brunswick.

When the New Brunswick government announced its deep corporate tax cuts in its March budget, it also predicted a $740-million deficit and acknowledged the province could remain in the red for four years.

Dexter announced on Aug. 18 that he would convene an economic panel to avoid the path toward a $1.3-billion deficit in three years.