Canada Has Made Big Gains on Internal Trade, Now We Have to Finish the Job

April 27, 2026

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As published in the Hill Times, an English-only outlet.

The hardest challenges are not always external or flashy. They are often cultural, or involve mindset shifts. We cannot do the quintessentially Canadian thing and be too polite to openly discuss and admit what is holding us back.

But since the United States president’s election in late 2024, it does feel as though prospects for our economic prosperity have us questioning whether we should have been more deliberate and proactive when it comes to dreaming big. To that end, a byproduct of this current trade turmoil has been an acknowledgement of our complacency when it comes to doing the difficult things that will allow us to grow our economy both abroad and domestically. For the latter, that means getting our own house in order and genuinely pursuing one Canadian economy by slashing internal trade barriers.

The rationale for action is clear as study after study has made the case that these barriers only serve to limit our economic growth. Most recently, an International Monetary Fund report noted that “eliminating all non-geographic, policy-related trade barriers could raise Canada’s real GDP by roughly seven percent over the long run,” which would have been a $210-billion boost in 2025. This is well in line with the Government of Canada’s assessment of $200-billion, or $5,100 per person.

To their credit, the federal government has sprung into action, underlined by the appointment of a minister of transport and another responsible for internal trade, with subsequent cabinet shuffles maintaining the practice of designating a minister responsible for the file. There has been follow through on the promise to remove all exceptions from the Canada Free Trade Agreement, as well as the tabling and passing of Bill C-5, An Act to enact the Free Trade and Labour Mobility in Canada Act, and the Building Canada Act.

We’ve also seen the signing of the Canadian Mutual Recognition Agreement on the Sale of Goods, the endorsement of a memorandum of understanding on interprovincial trucking, and work is underway to make progress on financial services, labour mobility and direct-to-consumer alcohol sales. Meanwhile, multiple formal agreements between provinces have been signed. These are all significant steps toward barrier-free trade across the country, and they have been broadly supported by the business community.

However, challenges around internal trade didn’t evaporate when Bill C-5 received royal assent and some agreements were signed; several barriers still lie within provinces and territories’ separate sets of legislative, regulatory and policy frameworks. These frameworks were established to solve similar problems that occur in each province but were constructed and written in vastly different ways.

If you’re a business trying to operate across provincial and territorial borders in Canada, you know it is a complex, ever-changing web to navigate. Some businesses hire additional staff to help them work through cross-border issues. Some firms do their best, but are unable to keep up with shifting compliance requirements. Some decide it’s not worth the hassle, and elect not to move into other domestic markets. Some may even choose not to operate in Canada at all. None of these options are helpful to the long-term growth of this country’s economy.

Now the focus is on the provinces and territories to do the hard work of looking inward to remove or streamline their own trade barriers. Last week, the Canadian Chamber of Commerce held its first-ever Future of Business Summit in Ottawa, which featured a panel of premiers discussing what they can agree on in the current moment, and they noted that removing barriers to internal trade must remain a top priority.

Hopefully, provinces and territories stay at the table, working toward meaningful progress. That said, Ottawa cannot politely accept that we’ve come this far only to settle for “good enough.” It must seriously consider applying conditions on major federal transfers to provinces and territories requiring the elimination of specific barriers to interprovincial trade and labour mobility, as noted in the 2024 fall economic statement.

In this moment, when geopolitical uncertainty is high and the stability of our most important trading relationship is no longer a given, it is critical for our provincial, territorial and federal governments to continue the hard and valuable work and get the job done.

Pascal Chan, Vice President, Strategic policy and Supply Chains, Canadian Chamber of Commerce

Visit the Supply Chains Council and the Transportation and Infrastructure Committee to learn more about the Canadian Chamber’s advocacy.