Ottawa agrees with provinces to act fast to topple internal trade barriers

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Federal, provincial and territorial governments have agreed to move quickly to take down internal trade barriers, and to soon allow Canadians in most regions to buy alcohol from other jurisdictions.

Internal Trade Minister Anita Anand told The Globe and Mail that the commitment, which was reached after Tuesday’s first ministers’ meeting, marks “unprecedented progress” on reducing internal trade barriers as Canada faces a trade war with the United States.

“This unjustified tariff on Canadian goods has provided impetus for Canada and first ministers to take a bold and united stance to decrease internal barriers to trade,” Ms. Anand said in an interview.

Internal trade barriers, which have been on the radar of policy-makers for decades, are largely attributed to regulatory differences between jurisdictions that make it challenging for businesses to sell their products across the country and for workers, such as doctors and nurses, to relocate.

The Committee on Internal Trade, which is made up of federal, provincial and territorial officials who oversee the Canadian Free Trade Agreement, has been given the task of coming up with a process to recognize labour credentials by June 1. The CFTA was signed in 2017 and aims to reduce internal trade barriers.

Governments will also be launching negotiations to recognize each other’s regulatory standards for all consumer goods, with the exception of food.

The federal government and all provinces, with the exception of Prince Edward Island and Newfoundland and Labrador, agreed to removing barriers to alcohol sales, which Ms. Anand said would lead to direct-to-consumer sales in some jurisdictions within weeks.

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While progress on dismantling internal trade barriers has been slow over the years, the issue became an urgent priority for federal and provincial leaders in the wake of U.S. tariffs.

“All of this is to build the Canadian economy without needing to go through Donald Trump, mitigating the effects of 25-per-cent tariffs,” Ms. Anand said.

Through the new agreement, provincial and territorial governments have committed to helping local businesses find new opportunities in other provinces and territories, something that Ms. Anand said could lead to domestic trade missions.

All governments will also be conducting reviews of the exceptions they have listed in the CFTA. The federal, provincial and territorial governments will also begin negotiations to have financial services covered by the agreement.

British Columbia Premier David Eby confirmed earlier on Wednesday that a commitment on knocking down internal trade barriers was forthcoming.

“I can assure people who have been frustrated by this, who have been wondering if the day would ever come, that they are going to be blown away by the level of co-operation and work that is under way right now to address this long-standing issue,” Mr. Eby told reporters in Victoria.

“Our goal is to eliminate any barriers between the provinces so that professionals, whether teachers, doctors, or nurses, are able to move seamlessly between provinces,” he said. “And that goods, that if they’re good enough for sale in British Columbia, they’re good enough for sale anywhere else in the country.”

The Nova Scotia government introduced legislation last week that would remove red tape on out-of-province goods and allow Canadians from other jurisdictions to work in Nova Scotia without having to go through additional licensing. However, those restrictions would only be lifted on goods and workers coming from provinces and territories that do the same.

While individual provinces have offered to pursue free trade and labour mobility among a “coalition of the willing” within Canada in recent weeks, Ontario Premier Doug Ford said there is now the political will to move as a whole.

“Everyone’s getting onside really quickly,” Mr. Ford said. “And we have a great program that we’re going to roll out as quickly as possible.”

Studies offer a range of estimates on the economic boost that would come from removing internal barriers.

Ontario officials are following Nova Scotia’s lead and working on legislation that would extend mutual recognition for standards in areas such as food safety, the trucking industry and manufacturing equipment to other provinces that pass bills and recognize Ontario’s standards.

Ontario’s legislature isn’t set to return until March 17 at the earliest, after last week’s re-election of Mr. Ford’s majority Progressive Conservative government, and it was not clear when any trade-barrier bill would be introduced.

Business leaders have expressed frustration by the slow pace of progress in dismantling interprovincial trade barriers.

Bridgitte Anderson, president and CEO of the Greater Vancouver Board of Trade, said many of her organization’s members find it easier to sell their products to the United States than in other Canadian provinces and territories.

“My concern is around inertia in the system and complacency. We don’t have time to waste. We need to be able to show urgency and take action right now in the face of these external threats,” she said Wednesday in an interview.