Canada is strongest when we are united. There should be one Canadian economy, not thirteen. Creating one Canadian economy will create higher paying jobs, improve affordability, and strengthen our national security.
Removing barriers to internal trade would lower prices for consumers by reducing trade costs by up to 15%1 and expand our economy by up to $200 billion or 4-8% over the long-term, equivalent to a gain of $3,000-$5,000 for every Canadian.2
American threats to Canada-U.S. trade create renewed urgency to address the longstanding barriers that have fragmented our economy and reduced opportunities for Canadians. The economic benefits from eliminating our internal trade barriers can more than offset the adverse effects from current U.S. tariffs. Moreover, becoming stronger at home will make us stronger abroad.
To that end, our government will immediately convene a First Ministers’ Meeting to work with provinces and territories on two objectives. First, to remove interprovincial trade barriers so that Canadians can trade freely. Second, to identify projects in the national interest that cross interprovincial boundaries so that they can be prioritised and accelerated.
There are three possible ways to remove barriers created by different rules. First, provinces and territories can agree on a new, common set of rules (“regulatory harmonization”). Second, more simply and quickly, provinces and territories could agree that if workers or businesses comply with the rules and standards in their home province or territory, compliance is recognized in all other provinces and territories (“mutual recognition”); they can then carry on activities accordingly across the country. Third, the federal government could set common standards that apply across the country, though this approach should be pursued in collaboration with other parties. Collaboration with Indigenous partners must inform the advancement of federal regulations.
Canada’s Constitution grants our federal Parliament the authority to legislate on the regulation of trade and commerce. While it is preferable to work in close collaboration with the provinces and territories, there may be circumstances where exercising these powers could be necessary and appropriate to advance Canada’s national interests.
A shift toward more flexible regulation, focusing on mutual recognition rather than harmonization, will unlock productivity gains and forge a more unified Canadian domestic market. We will provide support to provinces and territories, such as Nova Scotia, that pursue an accelerated approach to mutual recognition of rules.
We will strengthen our economy while protecting health, safety, the environment, and our shared public interests. Our actions will be grounded in the principles of barrier-free trade, the mutual recognition of standards across governments, and substituted compliance with regulations.
Many Canadians have earned valuable qualifications—from healthcare credentials for nurses and doctors to trucking licences, industry certifications, and Red Seal trades. Despite progress in recent decades, it is still too often the case that Canadians need to requalify if they move to a different province. This reduces opportunities and costs time and money. Our government is committed to collaborating with the provinces to ensure that qualifications in one part of our country apply to all, ensuring that anyone can work anywhere in Canada.
By promoting labour mobility, we will improve competitiveness, lower costs, and spur economic growth, benefiting Canadian businesses, workers, and consumers.
A bottle of wine from British Columbia, lumber from Nova Scotia, and energy from Alberta should be available for sale anywhere in Canada. Too often, however, internal trade barriers segment our market into thirteen separate economies, driving up costs and reducing choices for consumers.
Our government will reduce red tape and find solutions to improve the movement of goods and services across the country. Currently, efforts to address these challenges are fragmented across multiple federal bodies that lack focus, coordination, and clear accountability.
Canada has many tools to fix these issues. What’s needed is a government with the will to act decisively. We must ensure Canada’s workers and businesses are not held back by outdated and unnecessary regulatory burdens. Improving our supply chains will make it easier to move goods and services efficiently, attract investment, and help Canadian businesses compete globally.
By lessening the federal regulatory burden, there is an opportunity to demonstrate economic leadership, stimulate entrepreneurship and investment, and bolster activity and trade across the country.
Building and modernizing Canada’s cross-border infrastructure will reduce costs, speed up the movement of goods, and strengthen our national connectivity. By ramping up the construction and upgrading of our transportation networks, we will boost productivity and competitiveness—saving tens of billions of dollars for Canadian businesses and consumers. These strategic investments will create great jobs, stimulate regional growth, and ensure all Canadians benefit from a more efficient and unified market.
It’s time to take an integrated approach to the economic engines of international and domestic trade. This requires bold investments that benefit our entire trading economy.
Canada’s physical infrastructure is aging and fragmented, creating trade bottlenecks hindering interprovincial and international commerce. Outdated highways, rail networks, ports, and transit points force businesses to absorb high trade costs, detracting from Canadian productivity and economic competitiveness.
Long project approval timelines in Canada create significant investment uncertainty, hindering the rapid response needed to address global economic changes. Project approvals can take between 3-10 years–and even longer for complex projects.
Current approval timelines for major projects create delays that hamper economic growth and undermine investor confidence. Critical infrastructure—such as ports, railways, and energy projects—deserves expedited treatment to ensure Canada remains competitive and responsive to global market shifts. For example, after years of discussion without implementation, decisive action on decarbonization in the oil sands through carbon capture, utilization, and storage (CCUS) is long overdue.
By fast-tracking decision-making on major projects, Canada will reduce uncertainty, lower costs, and attract investment, stimulating job creation and economic growth. Government needs to shift from a culture of risk aversion to proactive infrastructure development in the interests of Canadian economic security.
[1] Internal trade, productivity and interconnected industries: A quantitative analysis by Albrecht and Tombe (2016). Available here.
[2] Liberalizing internal trade through mutual recognition: A legal and economic analysis by Tombe and Manucha (2022). Available here.
