Breaking Down Internal Trade Barriers
A recent report from the Canadian Federation of Independent Business (CFIB) reveals significant strides in reducing internal trade barriers across Canada. Released on June 30, the '2025 State of Internal Trade Report Card' indicates that more progress has been made in the past six months than in the eight years since the Canadian Free Trade Agreement (CFTA) was signed in 2017. Nova Scotia leads the pack, earning top marks for being the first province to introduce and implement mutual recognition legislation, which allows provinces to accept each other's standards and regulations.
The report grades federal and provincial governments on their efforts toward interprovincial cooperation. Nova Scotia's pioneering Free Trade and Mobility within Canada Act, introduced on February 25, has set a benchmark by fostering an environment of mutual recognition for goods, services, and labor mobility. Premier Tim Houston, also the Minister of Trade, emphasized the importance of this move, stating, 'We want other provinces and territories to know that Nova Scotia is open for business; we're ready to partner with other Canadian jurisdictions who are ready to do business with us.'
Regional Advances and Rankings
Following closely behind Nova Scotia, Ontario secured a strong second place by eliminating all of its CFTA exceptions. Additionally, Prince Edward Island and Ontario have introduced reciprocal legislation to mirror Nova Scotia’s efforts, a move hailed as a significant moment for the country by Premier Houston, who noted, 'This is a significant moment for our country, and these actions say a lot about our commitment to make our economies stronger.' Manitoba also received high praise with an 'A-' grade for maintaining its position as a national leader in internal trade cooperation.
British Columbia improved its standing to a 'B+' grade, up from a 'B' in 2024, though CFIB's director of legislative affairs for B.C., Ryan Mitton, remarked that the province still has 'a lot more work to do.' These regional advancements highlight a growing momentum toward dismantling trade barriers, yet disparities in progress across provinces remain evident in the CFIB's evaluations.
Patchwork Approaches Pose New Challenges
Despite the progress, the CFIB report warns that a patchwork of government approaches could introduce new challenges. Varying policies and timelines for implementing mutual recognition and other trade agreements risk creating inconsistencies that may hinder small businesses operating across provincial lines. Ryan Mallough, CFIB's vice-president of legislative affairs, highlighted this concern, pointing out that while some provinces are making significant steps forward, 'significant barriers still hold small businesses back from operating freely across Canada.'
The report underscores the need for unified action to turn promises into concrete results. As provinces like Nova Scotia, Ontario, and P.E.I. lead with legislative changes—such as allowing goods legally sold in one province to be sold in another without additional red tape—the CFIB urges all jurisdictions to align their efforts. This alignment is crucial to ensure that the economic benefits of reduced trade barriers are fully realized without creating new bureaucratic hurdles for Canadian businesses.