Canada’s premiers have agreed to minimize interprovincial trade barriers to reinforce the domestic economy amid an intensifying trade war with the United States.
The country’s premiers met with Prime Minister Justin Trudeau this week to discuss a unified response to the 25 percent tariffs slapped on Canadian products on March 4 by U.S. President Donald Trump. Only the auto sector has received a tariff reprieve, while energy exports received a reduced 10 percent tariff.
The goal for the Canadian leaders is to ensure that goods, services, and workers from every province can move freely across the country, according to a statement from the Prime Minister’s Office (PMO).
“We must increase our economic resilience, reduce dependence on one market, and strengthen our domestic economy for the benefit of Canadian workers and businesses now and in the future,” the statement says. “One key step is to make it easier for Canadians to do business with each other from coast to coast to coast.”
Internal trade barriers raise costs for businesses and consumers, which in turn hampers economic growth, the statement said, adding that while some progress has been made in recent years, there is much more to do to achieve free trade across the country.
One of the issues on the table is enabling certified professionals with credentials in one jurisdiction to be able to work anywhere in Canada.
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In Alberta, for instance, there are regulations governing certain highly trained professions such as dentistry. The province allows dental hygienists to perform more procedures and administer anesthesia after they have successfully completed an approved local anesthesia program.
As the sole province that permits these duties, it has previously created obstacles for hygienists from other provinces wishing to relocate to Alberta for work.
Alberta Premier Danielle Smith said the province is looking at ways to enable such professionals to relocate and work in the province.
“There’s no reason why we can’t have people come here and work and then be able to get that extra training, they need to do those extra services,” she said at an unrelated March 5 press conference. “I think those are things we overcome.”
Ottawa and the provinces are instructing the Committee on Internal Trade (CIT) to collaborate with the Forum of Labour Market Ministers to establish a nationwide credential recognition plan for Canada by June 1.
The federal and provincial governments are also responding to the United States with counter-tariffs and a number of other measures.
Trudeau announced Canada would enact $155 billion worth of tariffs on American goods, beginning with $30 billion worth of products as of March 4. The remaining $125 billion in tariffs will take effect in three weeks.
Premiers have also put other measures in place in response to the tariffs, including removing U.S. alcohol products from store shelves and either ending or tariffing procurement opportunities for American companies.
Interprovincial Trade
More than $530 billion worth of goods and services moved across provincial and territorial borders in 2024, representing nearly 20 percent of Canada’s gross domestic product, government statistics suggest.
The removal of interprovincial barriers has the potential to contribute an additional $200 billion to the economy, resulting in reduced prices and enhanced productivity, according to the CIT, a committee that includes Internal Trade Minister Anita Anand as well as her provincial and territorial counterparts.
“By working together with our provincial and territorial colleagues to remove internal trade and labour mobility barriers, we can unlock new market opportunities, attract investment and boost economic growth,” Anand said in a January CIT press release.
The committee has recommended three main steps to taking down the barriers, she said.
At the top of the list is the adoption of mutual recognition for goods and services throughout Canada, allowing a product or service offered in one jurisdiction to be available in another without the necessity of meeting further requirements.
The committee also recommended improving labour mobility so registered workers can be employed anywhere in Canada as well as improving the Canadian Free Trade Agreement by minimizing exceptions and addressing various sectoral priorities.
