For everyday Canadians, removing these barriers would mean lower prices and greater access to domestic goods. Photo Credit: Pexels.
Amid the growing tensions from the ongoing trade war with the United States under President Donald Trump, an unexpected surge in Canadian patriotism has emerged. Citizens are rallying to “buy Canadian,” a move driven by a newfound desire for economic self-reliance. This shift presents a significant opportunity for Canada’s economy, though one stubborn challenge remains: internal trade barriers between provinces.
From restrictions on Ontario wineries selling to Alberta, to regulatory discrepancies on truck transport and professional certifications, Canada’s provinces are notorious for fragmented rules. These trade impediments, some dating back to Confederation, have been a long-standing issue, but with renewed political focus, this may be a pivotal moment for change.
Trade barriers within Canada have persisted despite federal and provincial agreements like the 1995 Agreement on Internal Trade and the 2017 Canadian Free Trade Agreement. Both initiatives sought to streamline internal trade but failed to eliminate hundreds of provincial exemptions. Examples abound: Quebec’s stringent language laws hinder businesses from other provinces, and alcohol sales regulations vary so widely that it remains easier to purchase California wine in Manitoba than wine from Ontario.
According to experts, these barriers, though often grounded in legitimate regional concerns, are economically inefficient. The International Monetary Fund estimated in 2019 that eliminating them could inject $245 billion into Canada’s economy, lowering prices and improving productivity.
Conservative Leader Pierre Poilievre and Prime Minister Justin Trudeau have each committed to prioritize internal trade as a way to mitigate the economic risks posed by U.S. tariffs. Poilievre, for instance, proposes a meeting with premiers within 30 days of taking office to negotiate a comprehensive deal.
Meanwhile, federal Internal Trade Minister Anita Anand suggests that unprecedented cooperation between federal and provincial governments could result in substantial progress within a month. “We are at a pivotal moment in the history of our country,” Anand declared recently, stressing the urgency brought by the tariff threats.
Past efforts to reduce these barriers have been mired in political complexities. Provinces, wary of relinquishing autonomy, often protect entrenched local interests, such as provincial liquor boards and farm marketing agencies. Still, recent talks hint at an evolving mindset.
Premiers across the country, including Ontario’s Doug Ford, have expressed frustration with the inefficiencies created by these outdated restrictions.
For everyday Canadians, removing these barriers would mean lower prices and greater access to domestic goods. It would also bolster local industries by allowing them to compete more freely across provincial borders. Canadian businesses—from maple syrup producers to construction firms—stand to benefit from streamlined regulations, which would reduce costs and increase their competitiveness.
Beyond the cost savings for Canada, there is a growing call for federal procurement policies to prioritize Canadian-made solutions, further reinforcing economic resilience. While this issue remains separate from the current trade debate, it speaks to the broader sense of economic sovereignty.
As political leaders rally to dismantle interprovincial trade barriers, Canadians are being asked to do their part by supporting local businesses. The confluence of political will and public sentiment offers a rare chance to address a long-standing economic inefficiency.
“This isn’t just about trade,” Poilievre emphasized during a recent speech. “It’s about making our country stronger and more self-reliant.”
Indeed, with both the economic and political momentum in place, Canada may finally be on the brink of achieving true internal economic unity. And if it succeeds, future generations will look back on this moment as a transformative period in the nation’s economic history.
Daniel Perry is the Director of Federal Affairs at the Council of Canadian Innovators, leading national advocacy and engagement efforts. With experience in consulting and roles at the Senate of Canada, Queen’s Park, and the Canadian Criminal Justice Association, Daniel has helped political leaders and clients across various sectors achieve their public policy goals. A frequent media contributor and seasoned campaigner, Daniel holds a Master of Political Management from Carleton University.
