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Tariff threat pushes provinces and feds a step closer to fixing internal trade

OTTAWA — Canadian business groups and the federal Conservatives have ramped up pressure on the premiers to dismantle internal trade barriers in the face of what could be a devastating economic blow if the U.S. eventually does impose tariffs.

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Tariff threat pushes provinces and feds a step closer to fixing internal trade

Mutual recognition of goods and services is on the table as business groups and federal Tories demand progress

By Joanna Smith
A shot of Pierre Poilievre speaking into a microphone at a lectern, against a black background. He's wearing a dark suit and there's a sign on the lectern reading "Canada First."
Conservative Leader Pierre Poilievre says that, if elected, he'll meet with premiers within a month to tackle interprovincial trade barriers. Photo: The Canadian Press/Ethan Cairns
Feb 3, 2025
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A shot of Pierre Poilievre speaking into a microphone at a lectern, against a black background. He's wearing a dark suit and there's a sign on the lectern reading "Canada First."
Conservative Leader Pierre Poilievre says that, if elected, he'll meet with premiers within a month to tackle interprovincial trade barriers. Photo: The Canadian Press/Ethan Cairns

OTTAWA — Canadian business groups and the federal Conservatives have ramped up pressure on the premiers to dismantle internal trade barriers in the face of what could be a devastating economic blow if the U.S. eventually does impose tariffs.

“It’s funny: here we are trying to save our trade with another country while we can’t even trade with ourselves,” Conservative Leader Pierre Poilievre said Monday in Vancouver.

Getting rid of impediments to interprovincial trade on goods alone could boost Canada’s real GDP per capita by 3.8 per cent, according to a 2019 paper by the International Monetary Fund.

On Friday, the Committee on Internal Trade, a panel of provincial, territorial and federal ministers that oversees the implementation of the 2017 Canadian Free Trade Agreement (CFTA), recommended that Ottawa and the premiers adopt a policy of mutual recognition. This means if goods and services meet regulatory requirements in one province or territory, they would also clear the others. The committee also recommended improved labour mobility and shortening the list of CFTA exceptions.

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“There is a palpable buzz around the table,” Internal Trade Minister Anita Anand said in a Friday interview with The Logic, before the committee had finished its urgent meeting.

She said Ottawa would look to reduce its own red tape and duplication in procurement and financial services. “We do not stand outside this process.”

On Monday, the Conservatives shared their own plan for improving internal trade. Poilievre said in a statement that if he were elected prime minister, he would convene the premiers within 30 days “to agree on removing as many exemptions [to the CFTA] as possible.” He also posted a video on social media making the economic case for tackling the issue.

Daniel Tisch, president and CEO of the Ontario Chamber of Commerce, said now is the time.

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“Opportunity is not a matter of chance; it’s a matter of choice. For Canada, this is your moment to lead,” Tisch wrote in a Friday letter to premiers. It was signed by all provincial chambers of commerce.

#Canada-U.S. relations #Canada-U.S. trade #economy #internal trade #Pierre Poilievre #tariffs

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A shot of Pierre Poilievre speaking into a microphone at a lectern, against a black background. He's wearing a dark suit and there's a sign on the lectern reading "Canada First."

Photo: The Canadian Press/Ethan Cairns

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