Interprovincial trade: a step toward a more integrated Canadian economy?

Faced with growing trade tensions with the United States and recently imposed tariffs on certain Canadian products, provinces and territories have reached a consensus on one priority: strengthening the domestic economy. In the current context, reducing interprovincial trade barriers appears to be a concrete way to stimulate growth, increase productivity, and diversify market opportunities for businesses.

Since the Canadian Free Trade Agreement (CFTA) came into force in 2017, significant progress has been made to facilitate the movement of goods, services, investments, and labour across the country. However, regulatory obstacles remain, which hold back the full potential of the domestic market. In March 2025, the Premiers’ Declaration marked an important step by reaffirming a shared commitment to eliminate these barriers and adopt ambitious measures to further liberalize interprovincial trade.

Québec, often seen as a cautious player in opening its domestic market, has recently made a strong move through Bill 112. In this legislation, the province has committed to unilaterally recognize Canadian products legally sold elsewhere in the country, except in cases justified by safety, public health, or environmental concerns. Bill 112 also facilitates labour mobility by reducing administrative requirements for qualified workers from other provinces.

From the perspective of English Canada, these measures are part of a broader and welcome trend. Mutual recognition of standards and professional credentials would not only stimulate trade but also help address labour shortages in several sectors. Businesses in the West, the Prairies, Ontario, or Atlantic Canada could more easily access the Québec market, while consumers would benefit from greater variety and competitive prices.

However, this newfound openness is not absolute. Québec intends to preserve certain linguistic and cultural specificities, which could require particular adjustments in implementation. For many provinces, this balanced approach is understandable, especially if it does not slow down the overall momentum shifting toward a more integrated Canadian market. The question remains whether the country will be able to agree on certain standards required for the integration of sectors such as labour mobility.

This pivotal moment calls for economic realism. With the U.S. market potentially becoming less reliable, provinces see interprovincial trade as an opportunity to create a robust economic zone where the wealth generated in the country, remains in the country. Joint initiatives, such as direct alcohol sales systems or mutual recognition in the trucking industry, reflect the shared commitment and willingness to act quickly.

In short, Québec’s turn toward greater openness is seen by the rest of Canada as a major contribution to a collective national effort. If each province plays along, balancing local interests with the common goal, interprovincial trade could become one of the pillars of a stronger, more resilient Canadian economy, less vulnerable to external pressures south of the border or elsewhere.

Image Credit: “All Provinces and Territories” by Martin Lopatka, Flickr, https://www.flickr.com/photos/apothecary/11967928633/, licensed under CC BY-SA 2.0, https://creativecommons.org/licenses/by-sa/2.0/