Ontario’s government tabled new legislation Wednesday to reduce internal trade barriers, and Premier Doug Ford signed related agreements with two provinces, both in efforts to make the economy more resilient against the effects of American tariffs.
At an announcement Wednesday, Ford told reporters that trade barriers within Canada were essentially a self-imposed tax, raising the cost of everyday goods and services by nearly 15 per cent, echoing a figure Canadian Internal Trade Minister Anita Anand has said in recent months.
“Much like President Trump’s tariffs, these trade barriers hurt our economy, drive away jobs and investment, and divide us from each other,” Ford said.
Ford says his government’s new bill would make Ontario the first government in Canada to unconditionally remove all current exceptions to interprovincial free trade.
Donald Trump’s tariffs aren’t the only road blocks facing Canadian businesses. Interprovincial trade barriers are a big factor in many industries. But whether they’re a bad thing depends on who you ask. The CBC’s Malone Mullin explains.
The legislation would also enable the government to direct regulators in the province to recognize the goods, services and workers of reciprocating provinces and territories.
For example, government officials say that currently some trucks have to stop at provincial borders to change signage, so harmonizing those requirements would save those companies time and money.
As well, the bill is set to remove barriers that make it difficult for people in certain jobs to work in different provinces.
On alcohol, long a point of contention in interprovincial trade talks, the legislation would introduce an interprovincial direct-to-consumer sales model so that Ontario residents could buy directly from producers in other provinces, and Ontario producers could sell directly to consumers elsewhere in Canada.
The new bill comes a day after the Ontario government’s throne speech, in which the Progressive Conservative majority government promised to make internal free trade one of its first priorities as the legislature resumes.
The speech made several mentions of the need to respond to the economic uncertainty being created by U.S. President Donald Trump’s tariffs, and Ford reiterated that theme Wednesday.
“These last few months have made it clear, as premiers, we need to work together to build a more united, more competitive, more self-reliant Canadian economy that creates jobs and prosperity here at home,” Ford said Wednesday.
Ford signs trade MOUs with Nova Scotia, N.B.
Ford also signed memorandums of understanding Wednesday with the premiers of Nova Scotia and New Brunswick that support removing barriers between those provinces.
Nova Scotia’s government has already tabled similar legislation to reduce trade barriers, and Premier Tim Houston told reporters momentum is growing among his colleagues.
“We have to act on this moment and make sure that we open up true free trade across Canada,” Houston said. “The vibe from other premiers across the country [is] that they want to get there.”
Improving free trade between provinces has come to the forefront of political discussions in Canada since Trump first started threatening tariffs months ago.
Prime Minister Mark Carney pushed the issue in his first meeting with Canada’s premiers last month. Carney subsequently pledged to have internal free trade by Canada Day, saying the free movement of workers, goods and services within Canada would increase the size of the country’s economy by $250 billion.