OTTAWA, O.N. – The federal government is making a major push to dismantle Canada’s complex web of internal trade barriers, a move given new urgency by the recent escalation of trade tensions with the United States.
The “One Canadian Economy” law, recently passed by the new government, aims to untangle the competing regulations, taxes, and standards that make it difficult for goods, services, and workers to move freely between provinces. The government’s internal trade minister has been tasked with making significant progress on the reforms by this Canada Day, July 1.
“If a sausage is safe to eat and be served in Nova Scotia, it should be OK to sell that very same sausage in Saskatoon,” the minister said in a recent interview, highlighting the kinds of inefficiencies the government wants to eliminate.
For businesses in the Skeena region, these barriers can make it more expensive and complicated to sell products in Alberta or hire a certified worker from another province. Studies have shown the negative impact of these internal barriers is equivalent to a nearly 7% tariff on goods moving within Canada.
The push to boost domestic commerce comes as the U.S. President has halted all trade talks and threatened new tariffs. The federal government hopes that a more unified and efficient Canadian market can help insulate the economy from some of the impacts of U.S. protectionism.
Business groups in British Columbia have expressed support for the federal initiative, stating that removing these long-standing hurdles will help B.C. companies grow and compete across the country.
While previous attempts to solve the problem have failed due to regional interests, the current trade friction with the U.S. has created a powerful new incentive to finally create a truly single Canadian economy.
