Canada is making “incredible” progress in removing three major internal trade barriers, Transport and Internal Trade Minister Anita Anand told reporters in Halifax on Wednesday.
Anand described the work as “fast-paced progress with all of the provinces and territories.”
“We had an urgent meeting on Friday of the relevant ministers. At that meeting, we reached three strong recommendations,” she said.
Canada’s Committee on Internal Trade met last week to discuss how to open up trade between Canada’s provinces. Anand said the first major recommendation that the committee agreed to implement is mutual recognition of regulations across the country.
“That is, in other words, respecting the rules in place in other jurisdictions. So, you don’t have to comply, if you’re a trucker, with moving your lights to a slightly different location if you cross a provincial boundary,” she said.
She added, “Secondly, we all agreed to reduce the exceptions in the Canadian Free Trade Act.”
The Canadian Free Trade Agreement (CFTA) is an intergovernmental trade agreement signed by the federal government and all 13 provinces and territories that entered into force in July 2017.
It governs the internal flow of goods between the country’s different jurisdictions.
Anand said the committee also agreed to make labour mobility across Canada smoother, making it easier for a professional certified in one province to practice in another.
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“If you’re a construction worker or a nurse or a doctor, you don’t have to reapply for permits and licenses simply because you’re going where demand is taking you to another part of the country,” she said.
Anand said Prime Minister Justin Trudeau is planning to meet with the premiers Wednesday, where they will discuss these measures.
“I will be attending that meeting to discuss these very recommendations and the momentum is palpable. The moment is here and we are seizing the moment,” Anand said.
She said Ottawa will also change procurement rules.
“We’re going to put on the table the removal of exceptions in the area of procurement so that we don’t have as many restrictions relating to who can compete for federal contracts.”
Anand said Ottawa will also cut the red tape, to avoid duplication between federal government rules and provincial and territorial regulations.
“You’re going to see these barriers coming down and there is no need for legislation in order for that to happen,” she said. Any legislation would not be able to be passed while Parliament is prorogued, and it is not set to return until March 24 — but that could be longer if an election is called before that.
Anand said progress can be made in the short term.
“Substantial progress can be made in the short term in reducing barriers to interprovincial trade in goods and services,” she said.
When asked if Ottawa could break down these barriers before Trump’s extended deadline on tariffs is up in March, she said, “We met on Friday and we are meeting again at the beginning of March. And in between that time, I expect that we will see substantial progress.”
Industry groups in Canada breathed a sigh of relief Monday when Trump agreed to pause tariffs on Canada after a phone call with Trudeau.
But Canada is not out of the woods yet, they argue, and now is the time to dismantle some interprovincial trade barriers to blunt the impact of future tariffs Trump may decide to impose.
The Canadian Chamber of Commerce says it is encouraging to see political momentum on removing barriers between provinces, but it needs to be sustained.
“With the growing uncertainty in our trade relationship with the U.S., we can’t afford to ignore opportunities to strengthen trade within our own borders,” Randall Zalazar, director of government relations at the Chamber, told Global News.
“Governments across Canada need to keep this momentum going, both to boost our economy and to improve long-term stability.”
The 2024 fall economic statement cited International Monetary Fund numbers on how much opening up internal trade could grow Canada’s economy.
“According to a study by the International Monetary Fund, Canada could increase its GDP per capita by as much as 4 per cent — or $2,900 per capita estimated in 2023 dollars through liberalization of internal trade in goods,” the budget document said.
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