---
title: "Good in One Province, Good in All"
description: "Your credentials should work everywhere in Canada. Your business should sell everywhere in Canada. We are one country, let’s have one market."
image: "https://yorkfactory.buildcanada.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTI4OCwicHVyIjoiYmxvYl9pZCJ9fQ==--f6b2d249528f9a5e1bd66c4ba6014481d11d02c7/67b8f6c1ebf3d974689070a9_wayne-pommen-seo-image.png"
author: "Wayne Pommen"
published: "2025-02-07T20:50:00.000Z"
canonical: "https://www.buildcanada.com/memos/interprovincial-trade"
---

# Good in One Province, Good in All

## Key Messages

1. Your credentials should work everywhere in Canada. Your business should sell everywhere in Canada. We are one country, let’s have one market.
2. If we remove interprovincial trade barriers, GDP could rise by as much as $200 billion, or over $5,000 per person – a massive potential improvement in Canada’s productivity.
3. Canada’s federal and provincial leaders must seize the political moment - created by a widely-recognized productivity crisis and external tariff threats - to deliver on the long-delayed promise of internal free trade in Canada and capture the benefits for Canadians.

### 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 2022[1](https://www.cfib-fcei.ca/en/advocacy/removing-internal-trade-barriers-path-to-productivity-for-canadian-businesses) and up to $245 billion today[2](https://www.bnnbloomberg.ca/business/economics/2025/02/04/interprovincial-trade-barriers-what-they-are-why-they-exist-and-how-to-cut-them/). 

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](https://globalnews.ca/news/10996528/internal-trade-barriers-trump-tariff/).

### Current Problem

Canadian provinces have almost 600 bodies that make rules about goods and services within their borders. Barriers exist in almost every industry[4](https://www.bnnbloomberg.ca/business/economics/2025/02/04/interprovincial-trade-barriers-what-they-are-why-they-exist-and-how-to-cut-them/). Here are just a few examples:

- Provincially inspected dairy, eggs and meat products cannot be sold in other provinces[5](https://retail-insider.com/retail-insider/2025/01/interprovincial-trade-barriers-impact-canadas-food-and-beverage-sector/). 
- Financial planners and nurses need unique licensing requirements to work in each province[6](https://financialpost.com/news/economy/tariffs-bring-down-canada-interprovincial-trade-barriers)
- Higher vehicle weight limits are allowed in Atlantic Canada but must be reduced when travelling through Nova Scotia[7](https://financialpost.com/news/economy/tariffs-bring-down-canada-interprovincial-trade-barriers).
- A hairdresser from Manitoba can’t cut hair in New Brunswick without getting completely re-certified[8](https://www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVD\&TVD=1322554\&CVD=1322706\&CPV=6321\&CST=01052021\&CLV=2\&MLV=5\&D=1).
- With the exception of some provinces you can’t order wine directly from another province’s wineries[9](https://www.guildsomm.com/public_content/features/articles/b/rod_phillips/posts/canada-s-wine-market-a-complicated-mosaic).
- 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 packaging[10](https://retail-insider.com/retail-insider/2025/01/interprovincial-trade-barriers-impact-canadas-food-and-beverage-sector/).
- Different provinces have different rules on the kinds of toilet seats that can be used on construction sites[11](https://businesscouncilab.com/insights-category/analysis/money-on-the-table/).

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 spend[12](https://www.fraserinstitute.org/commentary/trump-tariffs-threat-should-hasten-trade-liberalization-among-provinces). 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 four[13](https://newwestpartnership.com/). 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 program[14](https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.insights-views.interprovincial-trade-barriers--march-3--2022-.html). 

### 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](https://www.imf.org/en/Publications/WP/Issues/2019/07/22/Internal-Trade-in-Canada-Case-for-Liberalization-47100). It also will mean a huge boost to Federal revenues with a projected $15 billion increase in federal tax revenue[16](https://www.bnnbloomberg.ca/business/economics/2025/02/04/interprovincial-trade-barriers-what-they-are-why-they-exist-and-how-to-cut-them/). 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 provinces[17](https://www.iedm.org/88332-poll-canadians-are-unequivocal-want-trade-barriers-eliminated/). 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.

‍

## Appendix

## **1. Federal Laws and Regulations Needing Change**

**Summary** :\
We are amending the Canada Free Trade Agreement to remove all provincial trade exceptions. We will pass a new **Interprovincial Mutual Recognition Act** ensuring anything approved in one province is valid everywhere within 60 days, unless blocked by strong evidence. A **Federal Interprovincial Trade Tribunal** will quickly resolve disputes and can penalize provinces that create unfair barriers. We will harmonize key regulations (transportation, food safety, licensing) and tie federal funding to provinces’ willingness to comply. Provinces must report annually on their progress. 

Below is an overview of some of the existing federal statutes and proposed new laws that must be amended, repealed, or created to fulfill the plan for a truly open Canadian internal market. Where possible, some specific sections and exact language changes are indicated.

### **A. Canada Free Trade Agreement (CFTA)**

_(Note: The 2017 CFTA itself is an intergovernmental agreement rather than a single federal statute. However, many federal and provincial laws and regulations implement it. The following references relate to the text of the CFTA and the need for federal implementing changes.)_

1. **Eliminate Provincial Carve-Outs**

- **Relevant Text** : _Part IV – Exceptions; Part VII Party Schedules _

- **Proposed Change** :

  - Delete all provincial exemptions listed in the relevant schedules.
  - Remove or modify language in Part IV that allows provinces to opt out of mutual obligations.
  - **Example Language** :\
    _“All schedules granting exceptions under Part VII are repealed. No party shall maintain exceptions without prior approval by the Federal Interprovincial Trade Tribunal, justified by transparent, evidence-based criteria.”_

2. **Mutual Recognition Clauses**

- **Relevant Text** : _Part V – Institutional, Administrative, and Final Provisions_

- **Proposed Addition** :

  - Insert a new article requiring automatic, nation-wide recognition of products, services, or professional accreditations approved in any province within 60 days.

    1. **Example Language** :\
       _“Any certification, license, permit, or product approval validly issued by a party under its jurisdiction shall be recognized by all other parties within 60 days of written notice, unless a clear scientific or factual objection is upheld by the Federal Interprovincial Trade Tribunal.”_

  - Strengthen enforcement by adding an article requiring the awarding of costs and damages for affected businesses when a province’s objection is overturned.

    1. **Example Language** :\
       _“Where a party’s objection is deemed unfounded, the objecting party shall indemnify affected businesses for demonstrated losses and bear all dispute resolution costs, as determined by the Tribunal.”_

3. **_New Pool of Funds for Compliant Provinces_**

- **Relevant Text:** _New Part_

- **_Proposed Change:_**

  - Establish a dedicated $5 billion federal fund. Any province that is fully compliant—i.e., “issue free”—with the revised CFTA rules (including the removal of carve-outs, adherence to mutual recognition, and harmonization efforts) will receive its proportionate share.

    1. **_Example Language:_**\
       _“The federal government shall create a $5 billion compliance fund. Any province determined by the Federal Interprovincial Trade Tribunal to be in full compliance with the amended CFTA obligations shall receive a portion of this fund, proportionate to its population or other equitable measures. Provinces found in violation of the new rules will forfeit access to their allocation until compliance is achieved.”_

‍

### **B. Consumer Packaging and Labelling Act**

- **Sections Requiring Modification** :

  - _Section 4 (application) and relevant regulations (labelling standards)_

- **Exact Terms to Delete/Modify** :

  - Remove or amend any references allowing provincial variations that create barriers.

  - **Example** :

    - Delete text in _Regulations Section 14.3_ (if referencing hypothetical differences) that states _“Subject to provincial regulations…”_ and replace with:\
      _“Packaging or labelling that satisfies the requirements of any one province or territory shall be accepted for sale nationwide.”_

- **New Language** :\
  _“Once a product’s packaging meets or exceeds the requirements in one province, it shall be deemed compliant throughout Canada. Contradictory provincial standards are unenforceable unless approved by the Federal Interprovincial Trade Tribunal for legitimate health or safety reasons.”_

### **C. Safe Food for Canadians Act & Food and Drugs Act**

1. **Safe Food for Canadians Act**

- **Sections Requiring Modification** : _Part 2 – Trade_
- **Proposed Addition** :\
  _“If a meat, egg, or dairy product is provincially inspected and approved in compliance with that province’s regulations, it shall be treated as equivalent to federal standards for interprovincial trade unless a tribunal finds substantial, evidence-based safety concerns.”_

2. **Food and Drugs Act**

- **Sections Requiring Modification** : _Section 30 (Regulations), any appended definitions that reference provincial-specific requirements._

- **Proposed Amendment** :

  - Clarify that once a food product meets the federal baseline, no stricter provincial rules can block interprovincial sale absent tribunal-approved justification.

### **D. Motor Vehicle Transport Act**

- **Sections Requiring Modification** :

  - _Sections referencing provincial weight limits and equipment standards._

- **Change Needed** :

  - Introduce uniform baseline trucking standards (e.g., permissible maximum weight, vehicle design).
  - **Proposed Language** :\
    _“A commercial vehicle lawfully operating within any province’s recognized weight and dimension rules may operate in all provinces without additional authorization, except where a Tribunal-approved exception is necessary for proven safety reasons.”_

### **E. New Legislation: Canadian Interprovincial Trade Tribunal Act**

- **Purpose** :

  1. Establish an independent tribunal to hear disputes quickly.
  2. Empower the tribunal to impose fines or direct compensation.
  3. Provide final administrative recourse prior to judicial review in the Federal Court of Appeal.

- **Key Sections** :

  1. **Section 1 – Establishment of the Tribunal**\
     _“There is established a Canadian Interprovincial Trade Tribunal, composed of judges or retired judges and experts in commerce.”_
  2. **Section 2 – Jurisdiction**\
     _“The Tribunal has the authority to adjudicate any dispute arising under the Canada Free Trade Agreement or any interprovincial trade-related federal statute.”_
  3. **Section 3 – Remedies and Enforcement**\
     _“The Tribunal may impose monetary penalties, award litigation costs, and order compensation to businesses. Tribunal decisions are binding, subject only to judicial review.”_
  4. **Section 4 – Expedited Process**\
     _“The Tribunal shall render a final determination within 90 days of receiving a complaint unless an extension is granted for exceptional reasons.”_

## **2. Federal-Provincial Interactions & Agreements**

1. **Council of the Federation**

- Premiers must agree to remove existing exceptions under the CFTA, requiring updated provincial legislation.
- Federal government coordinates with provinces to incorporate new mutual recognition rules into each jurisdiction’s laws.

2. **Federal-Provincial Fiscal Negotiations**

- Federal government will link partial funding under the **Federal-Provincial Fiscal Arrangements Act** to compliance.
- Provinces that comply quickly gain earlier access to “Interprovincial Trade Harmonization Rebates.”

3. **Specialized Ministerial Councils**

- _Transport Ministers_: Harmonize vehicle standards.
- _Agriculture Ministers_: Oversee food inspection alignment.
- _Labour Ministers_: Streamline occupational licensing.

4. **Mechanism for Ongoing Collaboration**

- Annual progress reports to Parliament and to provincial legislatures.
- Transparent performance metrics (trade cost reductions, increased commerce volumes, number of resolved disputes).

‍

## Supporters

[Michael Litt](https://www.linkedin.com/in/michaellitt/), [Brice Scheschuk](https://www.linkedin.com/in/brice-scheschuk-cpa-ca-095721a/), [Daniel Eberhard](https://www.linkedin.com/in/danieleberhard/), [Daniel Debow](https://www.linkedin.com/in/ddebow/), [Stewart Lyons](https://www.linkedin.com/in/stewartlyons/), [Andrew Graham](https://www.linkedin.com/in/andrewtgraham/), [Som Seif](https://www.linkedin.com/in/som-seif-29bb66/)

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