Good in One Province, Good in All

The Goal

At long last, eliminate interprovincial trade barriers so that goods, services, and workers can move freely across Canada, building economic growth, security, and national prosperity.

Summary

Canada was founded on the principle of economic unity. The Constitution Act states goods from one province must be freely admitted into any other. But the evolution of provincial power and jurisdiction over time has led to the creation - often unintentionally - of a plethora of internal non-tariff barriers to trade. A Canadian business in Manitoba can often export to the United States with more ease than selling to Ontario, and many workers face redundant licensing when moving between provinces. These internal restrictions fragment our economy and are costing us up to $200 billion in forgone GDP annually as of 2022¹ and up to $245 billion today². 

Imagine trying to use your driver's license in another province, only to be told it's not valid there. Sounds ridiculous, right? But this is an example of exactly what happens with many jobs, products, and services across Canada today. These barriers between provinces are costing every Canadian family thousands of dollars a year. At a time when our largest external trading partner is threatening to erect trade barriers, it is foolish to prevent commerce at home with barriers we control. Canada took a step forward with the 2017 Canadian Free Trade Agreement (CFTA), but the job is not done and many trade barriers remain in place.

We can fix this problem immediately by making standards and approvals in one province valid for all provinces. The provinces are all competent; we can trust one ruling everywhere. Then, as a second step, Canada can harmonize rules for goods and services by aligning national (but not necessarily federal) regulations. To align incentives, the federal government can share increased federal tax revenue back to provinces as barriers are removed. By doing this we will streamline trade, create jobs, empower our businesses and entrepreneurs - and grow our economy by more than 4%³.

Current Problem

Canadian provinces have almost 600 bodies that make rules about goods and services within their borders. Barriers exist in almost every industry⁴. Here are just a few examples:

• Provincially inspected dairy, eggs and meat products cannot be sold in other provinces⁵. 
• Financial planners and nurses need unique licensing requirements to work in each province⁶
• Higher vehicle weight limits are allowed in Atlantic Canada but must be reduced when travelling through Nova Scotia⁷.
• A hairdresser from Manitoba can't cut hair in New Brunswick without getting completely re-certified⁸.
• With the exception of some provinces you can't order wine directly from another province's wineries⁹.
• Different provinces have different requirements for investing that can prevent people who are investors in one province from investing elsewhere.
• Fruits and vegetables in British Columbia can’t be sold in Ontario without adjusting the packaging¹⁰.
• Different provinces have different rules on the kinds of toilet seats that can be used on construction sites¹¹.

There are hundreds more such examples which combine to dampen Canada’s internal trade. These rules also add about as much as 8 to 14 cents to every dollar Canadians spend¹². In other words, on a $100 grocery bill, up to $14 could be the result of barriers that are within Canada’s control to eliminate.

This problem has been well understood for decades and has been tackled several times, but progress has been incremental and the job is not done. The four Western provinces (BC, Alberta, Saskatchewan, and Manitoba) have already shown there's a better way through the development of the New West Partnership Trade Agreement (NWPTA), which in some ways goes farther than the CFTA. The NWPTA created a simple system where if something is approved in one province, it's automatically approved in all four¹³. All of Canada should double down on this success and extend the concept across the country.

What Needs To Be Done

• Council of the Federation-led implementation and accountability: Work through the Council of the Federation, convening the Premiers to ensure provincial buy-in and a cooperative approach to reform. Engage any other required subject-specific bodies such as the Council of Ministers of Education, Canada (CMEC).
  
  
• Full elimination of CFTA exceptions: Provinces must come together to comply fully with the Canada Free Trade Agreement, removing all of the many provincial carve-outs that continue to exist. Alberta and Manitoba have already led by example in removing their exceptions, and now the rest of Canada must quickly follow suit.
  
  
• Mandatory mutual recognition: Ensure that when a product, service, professional accreditation, or business registration is approved in one province it automatically receives "deemed approval" nationwide within 60 days—unless a province provides clear, evidence-based reasoning for an objection. If an objection is overturned, the objecting province must cover all litigation costs and compensate affected businesses.
  
  
• Harmonize regulations: Introduce national guidelines to align across provinces, beginning with the highest impact areas to create a true unified market.
  
  
• Financial incentives for compliance: For provinces that align their regulatory frameworks with the new harmonized national standards, provide rebates from federal tax revenue. The funds will be proportionate to the economic benefits generated by increased trade, ensuring fair compensation for provinces that modernize their policies. Studies show we'll get more money back in growth than we spend on the program¹⁴. 

Implementation Plan:

• Laws to be changed: Amendments to the CFTA and provincial regulations.
• New processes: Creation of a streamlined dispute resolution body to handle objections efficiently.
• Metrics for success: Reduction in trade costs, increase in interprovincial commerce, GDP growth.
• Accountability: Annual reporting on compliance, with federal funding tied to measurable progress.
• Timeline:
  
  • Immediate (0-3 months): Remove CFTA exceptions, establish mutual recognition framework.
  • Mid-term (3-6 months): Implement financial incentives and accountability measures.
  • Long-term (6-9 months): Full harmonization of key regulations, particularly in transportation, licensing, and food safety.

What This Means For The Future

This plan will:

• Lower prices for consumers
• Make it easier to move for work
• Help local businesses grow bigger
• Lead to better-paying jobs
• Improve talent development and reduce brain drain
• Create new jobs through growth
• Enhance efficiency of financial markets and reduce costs of financial services ecosystem
• Make Canadian companies stronger against foreign competition

Ultimately, Canada’s economy and productivity will accelerate. The benefits will be biggest for smaller provinces - PEI could see a 16% boost in their economy, and Newfoundland 12%¹⁵. It also will mean a huge boost to Federal revenues with a projected $15 billion increase in federal tax revenue¹⁶. This helps unify Canada by giving everyone a fair shot at success.

Common Questions

• Won’t this compromise provincial autonomy? Provinces still control regulations but must recognize each other’s standards unless there is clear, evidence-based justification for an objection.
• What about consumer safety? If a product or service meets safety standards in one province, it is safe for the rest of Canada. Any objections must be backed by scientific evidence.
• How do we ensure compliance? A federal-provincial dispute resolution body will oversee implementation, with financial penalties for unjustified objections.
• Isn’t this too complex to implement? The EU has achieved similar goals across multiple nations. Canada, as one country, has no excuse.
• Won’t local and special interests stand in the way? Canadian leaders must use this moment to act and pursue long-term economic benefits for their provinces and the country.

Conclusion

Three quarters of Canadians support removing these barriers between provinces¹⁷. It's time to give people what they want - a Canada where:

• Professional credentials work everywhere
• Businesses can grow easily across provincial lines
• Consumers can buy from anywhere in Canada
• Workers can move freely for better opportunities
• We all benefit from a stronger economy

The Western provinces have proven this can work. Now let's expand their success to all of Canada and finally create the united economic market we need to thrive in today's world.

Let’s come together to strengthen Canada's economy and make life better for all Canadians.

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