Thursday February 6, 2025
Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday February 6, 2025 (Also, The Toronto Star)
Breaking Down Barriers: A Call to Action for Canada’s Internal Trade
With U.S. tariffs looming large on the horizon, Canada stands at a critical juncture. The temporary reprieve from these trade threats offers a golden opportunity to strengthen our domestic economy by dismantling the interprovincial trade barriers that have long hindered our growth. Now, more than ever, all levels of Canadian government must turn political rhetoric into tangible action.
Transport and Internal Trade Minister Anita Anand and Conservative Leader Pierre Poilievre both recognize the crucial need to boost internal trade. Anand is making strides by promoting mutual recognition of regulations and enhancing labor mobility across provinces. Meanwhile, Poilievre has proposed a “free trade bonus” to incentivize provinces to eliminate trade barriers, promising financial rewards based on the economic benefits of deregulation.
The potential rewards are significant. Studies suggest that removing these barriers could add up to $200 billion annually to Canada’s GDP, translating into substantial savings for Canadian families and a stronger, more resilient economy. Deloitte’s report even estimates that families could save over $6,000 each year by reducing these barriers.
News: Interprovincial trade barriers: what they are, why they exist and how to cut them
However, the path forward is fraught with challenges. The Canadian Free Trade Agreement remains bogged down with exceptions that prevent the free flow of goods like alcohol and cannabis. Furthermore, some provinces and industries benefit from these barriers and may resist change. Public comments often highlight skepticism about provinces like Quebec and Ontario, which have been slow to embrace free trade ideals.
To overcome these obstacles, a unified, bipartisan effort is essential. Provinces must put aside regional protectionism and collaborate with the federal government to standardize regulations and enhance labor mobility. This includes addressing professional licensing standards, as suggested by Poilievre’s proposed “Blue Seal” certification, and ensuring that procurement and transportation rules are consistent across the country.
Beyond economic benefits, breaking down these barriers will make Canada more resilient against global market changes and reduce costs for consumers. By fostering a more integrated national market, we can enhance our competitiveness and create a more dynamic business environment.
News: Canada can do ‘substantial’ work fast on internal trade, minister says
As we approach provincial elections, it’s crucial for candidates to prioritize these issues. For too long, interprovincial trade barriers have been a topic of discussion without meaningful action. Voters should demand more than just promises; they should insist on concrete plans and timelines for change. Provincial leaders need to commit to working collaboratively with the federal government to streamline regulations and improve trade and labor mobility across the country.
Voters must hold candidates accountable, challenging them to pledge specific measures and deadlines for reducing these barriers. By prioritizing action over rhetoric, we can transform longstanding challenges into opportunities for economic growth and stability.
Comment: We’ll believe Ontario is ‘Team Canada’ on interprovincial trade when we see it
Now is the time for decisive action. The passion and urgency generated by external threats should fuel our commitment to dismantle internal barriers. By doing so, we can turn a moment of uncertainty into an opportunity for lasting growth and stability. Canada must seize this chance to fortify its economy from within, ensuring that we not only weather global market shifts but thrive in their wake. It’s time for provinces to step up and deliver real progress, ensuring that Canada is not only prepared for global market shifts but also thriving from within.