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News

Premiers, feds put first cracks in internal trade barriers

WASHINGTON — Most U.S. governors are convening in their nation’s capital this week to discuss things close to their regional concerns, from speeding up permits for energy projects to fighting the cross-border trafficking of fentanyl.

News

Premiers, feds put first cracks in internal trade barriers

As two premiers pleaded Canada’s case in Washington, D.C., leaders back home inched forward on trade within the country’s borders

By Joanna Smith
Tim Houston stands at a lectern wearing a red Team Canada hockey jersey. Behind him, just to his left, is Ontario PC Leader Doug Ford. There is a crowd of factory workers looking on from the background, and a sign on the lectern reading "Protect Ontario."
Nova Scotia Premier Tim Houston, centre, promised interprovincial trade legislation during an appearance in Milton, Ont., in support of Ontario PC Leader Doug Ford, who's running for re-election. Photo: The Canadian Press/Chris Young
Feb 21, 2025
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WASHINGTON — Most U.S. governors are convening in their nation’s capital this week to discuss things close to their regional concerns, from speeding up permits for energy projects to fighting the cross-border trafficking of fentanyl.

Two of their Canadian counterparts—Ontario Premier Doug Ford and Nova Scotia Premier Tim Houston—are in town to make the case against U.S. tariffs on Canadian goods, reminding the governors that slowing trade between provinces and states will hurt Americans, too.

Talking Points

  • Ontario Premier Doug Ford and Nova Scotia Premier Tim Houston travelled to Washington, D.C., to meet with U.S. governors, and remind them that tariffs on Canada will cost Americans
  • They left amid long-awaited signs of progress on internal trade within Canada, including a pledge from Houston that Nova Scotia will recognize other provinces’ regulatory approvals for goods and services

Ford and Houston left Canada, though, amid news of long-awaited progress on interprovincial trade.

Getting their own house in order

Anita Anand, the federal minister of internal trade, has said the threat of U.S. tariffs has built momentum to bust down barriers to interprovincial commerce—a move that one study says could give a big lift to Canada’s economy and productivity. On Friday, her government was set to lead by example, said a senior federal official, who spoke on the condition they not be named to discuss matters not yet made public. 

Anand, the official said, would tell premiers that Ottawa will remove more than half of the exceptions to the 2017 Canadian Free Trade Agreement (CFTA) that are within federal jurisdiction. The minister has previously said they relate to financial services and federal procurement. The federal official said the Committee on Internal Trade, which oversees the implementation of the CFTA, will meet to discuss the matter next week.

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On Thursday, Houston announced his province would introduce legislation giving regulatory approval in Nova Scotia to goods and services that meet requirements in other provinces or territories—as long as those jurisdictions have done the same. 

“It’s time to protect Canadian companies by opening access to all 40 million Canadian consumers,” The Canadian Press quoted him saying as he appeared alongside Ford in Milton, Ont., where Ford was campaigning for re-election as Ontario PC leader. “We’ve made laws and barriers that actually suggest that a frozen meat pizza made in Nova Scotia is safe for Nova Scotians but not Ontarians. Give me a break.” 

Ford also supports improving internal trade. “It’s just the right thing to do and I think you’re going to see everyone follow suit,” he said Friday in Washington.

Making the case

Ford was scheduled to meet several governors during his time in Washington, including Nebraska’s Jim Pillen, Georgia’s Brian Kemp, Vermont’s Phil Scott—all Republicans—and New York Gov. Kathy Hochul, a Democrat.

“Nothing’s better than looking at someone eye to eye—speaking to them, speaking to their team, getting their opinion,” Ford told reporters Friday on the sidelines of the meeting. “And it’s so diverse down there. You know, New York is different than California. It’s different than Florida, different than North Dakota.”

Houston, who joined Ford in some meetings, said governors have been receptive. “There’s a lot of respect for the relationship,” he said. “We’re just kind of reminding people that we’re in this together.” At the same time, both premiers noted Trump will be the one to make the calls. “The ironic thing: no one down here knows what he wants, and we don’t know what he wants,” Ford said. 

“This is not who we are. This might be the approach of one president, but we’re much bigger than a president in this country.”


‘Bigger than a president’

Kentucky Gov. Andy Beshear, a Democrat considered a potential presidential contender in 2028, has been outspoken in opposition to tariffs on Canada, in part because Canada has said it would retaliate with tariffs on bourbon that would hit distilleries in his state.

“My concern is it’s going to raise prices for both Americans and Canadians, and none of us should want that,” Beshear told reporters as he arrived Friday at the governors’ meeting. He said he had a message for the Canadian people: “This is not who we are. This might be the approach of one president, but we’re much bigger than a president in this country. 

“We have governors, we have multiple branches of government, and I certainly hope we can move past this and get back to the relationship we had before.”

All politics is local

Jamie Tronnes, executive director of the Center for North American Prosperity and Security, predicted state leaders will see benefit in hearing out the premiers. Many are worried about how tariffs on Canada—as well as retaliatory tariffs—will affect their local economies, she said. The Canadian Chamber of Commerce estimates about $3.6 billion in trade flows back and forth across the Canada-U.S. border every day, with Canada being the top export destination for 30 states, from machinery and electrical equipment in Arkansas to jewelry, antiques and art for New York. 

“It is also important for those governors to be seen to be doing something about tariffs,” Tronnes said, “because the tariffs are going to affect their local workforces in a big way.”

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This could be an indirect way to spread the word among senators and representatives on Capitol Hill, too. Governors are understood in Washington to have more of a finger on the pulse of everyday American life than federal lawmakers do, said Christopher Sands, director of the Canada Institute at the Wilson Center in Washington. 

This story was updated to incorporate comment from Doug Ford and Tim Houston.

#Anita Anand #Canada-U.S. trade #Doug Ford #economy #interprovincial trade #Tim Houston

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Tim Houston stands at a lectern wearing a red Team Canada hockey jersey. Behind him, just to his left, is Ontario PC Leader Doug Ford. There is a crowd of factory workers looking on from the background, and a sign on the lectern reading "Protect Ontario."

Photo: The Canadian Press/Chris Young

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