Internal Trade Minister Anita Anand informed the provinces Friday that Ottawa will remove more than half of federal internal trade barriers in a move to make Canada less reliant on the United States, according to a senior federal government source.
Anand made the announcement at an informal, virtual meeting of the Committee on Internal Trade, which is responsible for implementing the Canada Free Trade Agreement (CFTA).
The federal government is removing more than half of the 39 remaining CFTA exceptions to encourage more trade within Canada, according to the source.
CBC News is not identifying the source because they were not authorized to speak publicly.
The move comes a little more than a week before Canada could be hit with punishing tariffs from its largest trading partner.
Anand has said previously that the U.S. President Donald Trump’s threats have brought a new sense of urgency to knock down Canada’s internal trade barriers as never before.
More changes expected in coming week
The Canadian Chamber of Commerce called the announcement encouraging news, but noted that exceptions to the CFTA aren’t the only barriers to trade within Canada.
“Now is the time for provinces to push forward on broad mutual recognition, streamlining the regulations and standards that make the cross-country flow of workers and goods needlessly difficult,” said Randall Zalazar, director of government relations at the Canadian Chamber of Commerce.
“In the face of tariffs and serious trade disruptions, capitalizing on the benefits of internal trade is too important to miss out on.”
Removing all internal trade protections could lower prices by up to 15 per cent, boost productivity by up to seven per cent and add up to $200 billion to the domestic economy, she said.
“We are at a pivotal moment in the history of our country and in the future of the Canadian economy,” Anand said earlier this month.
“The momentum is palpable. The moment is here and we are seizing the moment.”
Last July, Intergovernmental Affairs Minister Dominic LeBlanc announced the removal of 17 federal exceptions from the CFTA related to federal procurement. Today’s announcement is expected to tackle more than half of the remaining 39 exceptions.
The source did not disclose exactly how many exceptions are being wiped and which ones they are.
Anand previously told CBC News she was working on removing federal trade barriers related to procurement and financial services.
Canada is responding to U.S. President Donald Trump’s threat of massive tariffs on Canadian imports with retaliatory tariffs of its own. Andrew Chang explains how tariffs — and a possible trade war — could impact the economy, businesses, and consumers both north and south of the border.
Images gathered from Reuters, Getty Images, and The Canadian Press.
The minister also said she’s working with provinces to streamline labour mobility and other rules, including regulations for truckers.
“We need mutual recognition of rules across the country so that if you’re a trucker, you don’t have to comply with 13 different sets of regulations,” Anand previously told CBC’s Rosemary Barton Live.
Anand’s announcement comes one day after Nova Scotia Premier Tim Houston made a surprise appearance at a rally for Ontario Progressive Conservative Leader Doug Ford to reveal his government intends to introduce legislation to make trade easier with other provinces.
Houston said his government’s forthcoming bill will ensure any Canadian goods can be sold in Nova Scotia without further testing or red tape, as long as it’s reciprocal.
Ford is promising similar action if re-elected.
The Committee on Internal Trade is holding a formal meeting next Friday to review the federal changes and work the provinces are doing to improve internal trade.
