Study finds Canada could unlock major economic gains through stronger competition
News release
February 4, 2026 – GATINEAU (Québec), Competition Bureau
An independent, peer-reviewed study commissioned by the Competition Bureau found that removing regulatory barriers to competition in Canada could grow the economy by up to 10% over the long term.
The study—The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada— was conducted by international productivity experts and published in the International Productivity Monitor.
The authors highlight that current regulations in four key sectors—energy, transportation, retail distribution, and professional services—are more restrictive than necessary. The study finds that making these rules more competition-friendly would create a stronger environment for innovation, help close the productivity gap with leading economies, and raise living standards for Canadians.
The study also notes that the estimated 6.5 to 10% boost to Canada’s Gross Domestic Product is conservative and reflects only part of the potential benefits. Additional gains could be realized by:
- reducing barriers to trade within Canada,
- making it easier for workers to move between provinces, and
- attracting greater investment from abroad.
The findings provide compelling evidence that implementing pro-competition regulations has the power to unlock significant economic growth for Canada.
Quotes
“This study shows just how much Canada could gain from a pro-competitive regulatory reform across all levels of government. Recent progress on eliminating internal trade barriers shows that this is possible. By working together, we can build a more affordable, productive and resilient economy.”
Jeanne Pratt,
Acting Commissioner of Competition
Quick facts
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The study found that Canada has faced persistent productivity challenges, in several areas, and its regulatory environment is now among the least competition-friendly compared to similar countries.
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The study used industry data from 15 Organization for Economic Co-operation and Development (OECD) countries, covering 19 different sectors over the past 25 years. The regulated sectors covered by the study make up 30% of Canada’s gross domestic product (GDP) and 40% of the goods and services used in other parts of the economy.
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Pro-competitive reforms can be implemented without compromising important regulatory objectives such as health, safety, security, and environmental protection.
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The study was prepared by Gilbert Cette (NEOMA Business School), Jimmy Lopez (Université de Bourgogne), Giuseppe Nicoletti (LUISS Lab of Economics and Energy Transition), and Océane Vernerey (Université de Bourgogne), and published in the International Productivity Monitor.
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.