Advancing internal trade

Over $500 billion worth of goods and services moves across provincial and territorial borders every year — equal to almost 20% of Canada's gross domestic product. Last year, one-third of Canadian businesses participated in internal trade by buying or selling goods across provincial and territorial borders.

Trade within Canada drives commerce, creates jobs, facilitates business expansion and gives Canadians more choice.

Barriers to internal trade

Federal, provincial and territorial governments do not impose tariffs on goods and services that cross internal borders, but there are several subtle barriers that limit the ability to buy, sell, and transport goods and services across the country or work in other provinces.

Persistent barriers to interprovincial trade and labour mobility negatively impact Canadian businesses’ ability and desire to operate between provinces and territories. It is estimated that eliminating internal trade barriers could boost GDP by as much as $200 billion, which is equivalent to $5,100 per person.

Barriers to internal trade can be divided into four broad categories:

• Natural: Geographical barriers such as distance and configuration of borders.
• Prohibitive: Provincial and territorial laws or requirements that unintentionally prohibit internal trade, notably restrictions on cross-border purchases of alcohol.
• Technical: Sector-specific regulations that differ across provinces/territories such as vehicle weight standards.
• Administrative: Provincial/territorial permits/licensing/other paperwork requirements imposed on businesses that operate in multiple jurisdictions.

Key actions to remove barriers to internal trade

The Government of Canada recognizes the importance of internal trade and is removing barriers and facilitating trade across the country. Recent key federal actions include:

• Passing Bill C-5, the One Canadian Economy Act: On June 26, Bill C-5 received Royal Assent. Through the Free Trade and Labour Mobility in Canada portion of this Act, the government will recognize comparable provincial or territorial regulations related to interprovincial trade, where they exist, as meeting federal requirements for the movement of goods, services, and labour within Canada. This will allow more goods, services, workers and business to move freely across provinces and territories.
• Removal of all remaining federal exceptions in the Canadian Free Trade Agreement (CFTA): On June 30, the federal government removed all remaining 20 federal exceptions from the CFTA, eliminating all 53 federal exceptions in the Agreement since its introduction in 2017.
• Co-chairing the mutual recognition in the trucking sector project: The Governments of Canada and Newfoundland and Labrador are co-chairing a project for the trucking sector. All provinces and territories have committed to recognizing each other’s regulatory requirements in the trucking sector, even where differences exist, such as oversized vehicle signage requirements. This will allow trucks and the goods they carry to move across Canada more effectively, without compromising safety and security measures. Internal Trade ministers have agreed to work together to rapidly expand this work, and to have an agreement by fall 2025.
• Launching the Canadian Internal Trade Data and Information Hub: The Canadian Internal Trade Data and Information Hub, along with our direct engagement with businesses and industries across Canada, provides policy makers with critical insights into the barriers and challenges businesses face when doing business in Canada. This information will help us, as well as the provinces and territories, better identify and address trade barriers.

Working together

Collaboration between federal, provincial and territorial governments is key to protecting Canada's interests, and is more important than ever. The federal government has implemented a number of measures to remove barriers to internal trade and labour mobility, but it’s through cooperation, and complimentary work that we are moving the needle forward for Canadian businesses and workers.

The Committee on Internal Trade has been meeting at an enhanced rate, demonstrating an unprecedented level of collaboration and urgency. At their last meeting on July 8, 2025, federal, provincial and territorial ministers agreed to bold, transformative actions to eliminate regulatory barriers to internal trade, encourage free movement of labour and further standardize regulations across Canada.

Internal Trade Ministers agree to:

• Conclude negotiations for the financial services section of the CFTA, and reach an agreement in-principle. Entry into force of the chapter is expected by the end of fall 2025.
• Quickly expand the Mutual Recognition Project in the trucking sector in collaboration with Ministers of Transport and to have an agreement by fall 2025. A Trucking Hackathon was held in July 2025, bringing together experts from across Canada to identify new ways to reduce costly transportation barriers by aligning regulations in the trucking sector.
• Reach consensus to implement a Mutual Recognition Agreement focused on regulatory measures governing the sale of goods, except food, by December 2025.
• Commit to a 30-day service standard for processing labour mobility applications, and implement a digital verification solution for tradespersons. Several jurisdictions have already passed legislation to streamline labour mobility processes.
• Ten jurisdictions agree to a Memorandum of Understanding (MOU) committing to advance Direct-to-Consumer (DTC) alcohol sales giving consumers the ability to order their favourite Canadian wine, spirit, beer or other alcoholic beverage directly from the producer, for personal consumption. Provinces and territories are working towards finalizing more detailed operating agreements required to implement DTC alcohol sales by May 2026.

The Internal Trade Ministers are also removing unnecessary exceptions from the CFTA, creating new opportunities for Canadian businesses to buy and sell interprovincial and compete for government procurement. Since January 1, 2025, federal, provincial and territorial governments have removed 90 or 30% of the 296 exceptions to the CFTA. Of these 90 removed exceptions, 39 were federal exceptions. Combined with the previously removed 14 exceptions, the federal government has now eliminated all 53 of its exceptions in the Agreement since its introduction in 2017.

The Forum of Labour Market Ministers (FLMM) are also working on implementing improvements to ease labour mobility across the country. The FLMM Action Plan, endorsed by CIT and First Ministers in early June 2025, outlined concrete steps to improve the movement of workers across provinces and territories. Key measures include:

• Improving predictability and clarity for certified workers through a 30-day service standard and standardized list of required documents;
• Developing tools for faster certificate recognition for tradespeople; and
• Reviewing the 13 occupations with legitimate objectives to ensure they are still required and aligned with public protection objectives.

The Prime Minister and the premiers are working together, through the First Ministers Meetings, to implement a shared plan to strengthen internal trade in Canada. Team Canada stands firm, united, resolute, and ready to face any challenge that comes our way.