Ontario to remove barriers to internal trade, labour mobility, in response to U.S. tariffs

Ontario’s government has taken a significant step towards reducing internal trade barriers by tabling new legislation aimed at making the economy more resilient against the effects of American tariffs. Premier Doug Ford signed agreements with two provinces in efforts to tackle this issue head-on.

During an announcement on Wednesday, Ford emphasized that trade barriers within Canada act as a self-imposed tax, increasing the cost of everyday goods and services by nearly 15 per cent. This sentiment was echoed by Canadian Internal Trade Minister Anita Anand in recent months. Ford likened these barriers to President Trump’s tariffs, stating that they harm the economy, deter job creation, and drive away investment.

The new bill introduced by Ford’s government aims to make Ontario the first province in Canada to unconditionally remove all current exceptions to interprovincial free trade. This legislation would also empower the government to direct regulators to recognize goods, services, and workers from reciprocating provinces and territories. For example, the bill aims to streamline processes such as truck signage requirements at provincial borders to save time and money for businesses.

In addition, the bill seeks to eliminate barriers that hinder individuals in certain professions from working in different provinces. Addressing the longstanding issue of alcohol trade, the legislation proposes an interprovincial direct-to-consumer sales model, allowing Ontario residents to purchase directly from producers in other provinces and vice versa.

The timing of this legislative push comes shortly after the Ontario government’s throne speech, where internal free trade was highlighted as a top priority. With economic uncertainty stemming from President Trump’s tariffs, Ford emphasized the need for provinces to work together to build a more united, competitive, and self-reliant Canadian economy.

Furthermore, Ford signed memorandums of understanding with the premiers of Nova Scotia and New Brunswick to support the removal of trade barriers between the provinces. Nova Scotia has already introduced similar legislation, and Premier Tim Houston expressed optimism about the growing momentum among his colleagues to enhance free trade across Canada.

The push for improved free trade within Canada has gained traction in recent months, with Prime Minister Mark Carney advocating for the free movement of workers, goods, and services within the country. Carney projected that achieving internal free trade by Canada Day would boost the country’s economy by $250 billion.

Overall, Ontario’s proactive approach to reducing internal trade barriers demonstrates a commitment to fostering economic growth, job creation, and prosperity within the province and across Canada. The collaborative efforts between provinces signal a collective determination to overcome challenges and build a stronger, more resilient economy for all Canadians.