Timeline: Government of Canada on Advancing Internal Trade 2017 – 2024
Over $500 billion worth of goods and services moves across provincial and territorial borders every year — equal to almost 19% 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 is a key piece of our economy. It drives commerce, creates jobs, facilitates business expansion and gives Canadians more choice. Recognizing the importance of internal trade, the Government of Canada has taken concrete actions to remove barriers and facilitate trade across the country. Key milestones include:
- July 2017: The Canadian Free Trade Agreement (CFTA) came into force, committing federal, provincial and territorial governments to a comprehensive set of rules to reduce and eliminate internal trade barriers.
- Since 2017: Endorsing 13 Reconciliation Agreements with the provinces and territories to reduce regulatory burden that impedes trade.
- December 2022: Implementing the Federal Action Plan to Strengthen Internal Trade.
- September 2024: Launching a mutual recognition pilot project in the trucking sector with a coalition of provinces and territories.
Below are the measures the Government of Canada has taken since signing the CFTA, to enhance internal trade, make life affordable, strengthen our supply chains, and grow our economy.
2017-2018
- Canada Free Trade Agreement (CFTA): Came into force July 1, 2017, reducing and eliminating barriers to the free movement of persons, goods, services and investments within Canada, and establishing:
- The Committee on Internal Trade (CIT): Comprised of Federal Provincial and Territorial (FPT) ministers responsible for internal trade, meeting annually and supervising the implementation of the CFTA.
- The Regulatory Reconciliation and Cooperation Table (RCT): FPT table responsible for addressing trade barriers through regulatory reconciliation.
- Timber Marking Act: Repealed the federal Timber Marking Act, which required timber to be marked when floated down rivers in certain provinces. This supports the seamless movement of timber between jurisdictions.
- 2018 Fall Economic Statement: Committed $13.5 million to make access to the National Building Codes free, address provincial, territorial, and other stakeholder code development priorities in a more timely way, and construction code harmonisation in 2019.
- Endorsed Reconciliation Agreement on Weight Allowances for Wide Base Single Tires (WBS): The Council of Ministers Responsible for Transportation and Highway Safety agreed to align weight limits across and within jurisdictions for WBS Tires and more traditional Dual Tires, reducing shipping costs.
- Endorsed Reconciliation Agreement on Organic Labelling for Aquaculture Products: The Government of Canada committed to reconciling organic labelling requirements for aquaculture products with those for agricultural products, increasing market access opportunities for organic products by Canadian aquaculture producers.
- Endorsed Reconciliation Agreement on Occupational Health and Safety: The Government of Canada committed to adopting a national common standard for personal equipment and first aid kits (eye and face protection, head protection, foot protection, hearing protection, personal floatation devices and life jackets), reducing the need for Canadian businesses who operate in multiple jurisdictions to purchase different sets per jurisdiction.
- Endorsed Reconciliation Agreement on Inspection Requirements for Produce: The Government of Canada committed to reconciling differing requirements for grade inspections for apples, potatoes, and quality inspections for blueberries, making it easier to sell these products in other provinces and territories.
2019-2020
- Safe Food for Canadians Act: The Government of Canada implemented the Safe Food for Canadians Act and related regulations to enable regulatory harmonization in the agri-food sector.
- Importation of Intoxicating Liquors Act: The Government of Canada removed federal restrictions on the sale of alcohol, eliminating all federal barriers to sale of alcohol in Canada.
- Federal-Provincial-Territorial Action Plan: Trade in Alcoholic Beverages: At the 2019 Committee on Internal trade, Ministers launched an action plan to improve consumer choice and greater access to markets for alcohol producers.
- Endorsed Reconciliation Agreement on Upholstered and Stuffed Articles: The Government of Canada committed to eliminating red tape and reconciling regulatory measures that act as a barrier to the internal trade of upholstered and stuffed articles within Canada.
- Endorsed Reconciliation Agreement on Extra-Provincial/Territorial Corporate Registration and Reporting: The Government of Canada committed to develop and implement the Multi-jurisdictional Registry Access Service (MRAS), a scalable and adaptable digital solution that enables information to be shared among jurisdictions through a central hub, making extra-provincial/territorial registration and reporting more seamless and efficient for businesses.
- Endorsed Reconciliation Agreement on Energy Efficiency Requirements for Household Appliances: The Government of Canada committed to aligned energy efficiency regulations for household appliances such as washers and dryers, ovens and ranges, refrigerators, microwave ovens, freezers and dishwashers, increasing clarity for consumers and making it easier to manufacture and sell appliances within Canada.
- Endorsed Reconciliation Agreement on Aquaculture Site Marking: The Government of Canada worked with Nova Scotia and Newfoundland and Labrador to implement consistent markings of waterways regulated by FPT governments to ensure safety for users.
- Commercial Vehicle Drivers Hours of Service Regulations: The Government of Canada mandated federally regulated truck and bus motor carriers use certified electronic logging devices to keep track of hours worked, establishing a national standard, reducing costs and making it easier for drivers to move goods across the country.
- Excise Act: The Government of Canada amended the Excise Act to allow for authorized out-of-province retailers to hold cannabis products stamped for a different jurisdiction, removing federal restrictions on the interprovincial and territorial sale of cannabis.
- Endorsed Reconciliation Agreement on Pan-Canadian Occupational Health and Safety: The Government of Canada committed to reconcile standards for seven different types of Fall Protection equipment across the country.
- Food and Drug Regulations: The Government of Canada amended vodka standards to permit innovation and harmonize with international trading partners.
- Domestic Comparability Assessment Tool : The Government of Canada developed a comparison tool for food and meat inspection that provincial and territorial governments can use to self-assess their inspection regimes with the federal regime. This tool supports the identification of barriers and prioritizes efforts to reduce them.
2021-2022
- Budget 2021: Committed $21 million to strengthen internal trade including:
- creating a repository of open and accessible pan-Canadian internal trade data
- pursuing internal trade objectives through new or renewed discretionary federal transfers to provinces and territories.
- Endorsed Entry-level Training for Commercial Drivers (Class 1): The Council of Ministers Responsible for Transportation and Highway Safety approved set a national minimum standard for commercial truck driver entry-level training.
- Endorsed Reconciliation Agreement First Amendment on Pan-Canadian Occupational Health and Safety Reconciliation Agreement: The Government of Canada agreed to include first aid training in the Pan-Canadian Occupational Health and Safety Reconciliation Agreement, setting a common standard for first aid training, and supporting businesses operating across multiple jurisdictions.
- Budget 2022: Announced additional investments that support internal trade:
- Labour Mobility Tax Deduction: providing tax recognition up to $4,000 per year on eligible travel and temporary relocation expenses to eligible tradespersons and apprentices.
- Loan forgiveness for family doctors and nurses in rural and remote communities: $26.2 million in additional funding under the Canada Student Financial Assistance Program.
- Foreign Credential Recognition Program: $115 million over five years, with $30 million ongoing to help 11,000 internationally trained health care professionals per year get their credentials recognized in Canada and find work in their field.
- Canadian Agricultural Partnership: Renewed this comprehensive suite of supports for Canadian farmers and researchers with $600 million per year, starting in 2023, to support agricultural innovation, sustainability, competitiveness, and market development.
- Canada’s transportation networks: $603.2 million over five years, starting in 2022–23, in new infrastructure funding, supply chains digitization, and actions to reduce the regulatory burden on industry.
- Exemption for Service Rig Transportation: The Government of Canada implemented a federal exemption for service rig transportation, operating within a small area or in recognized oil and gas fields, from having to complete both a record of duty status and other industry documents to show they comply with work, rest and record-keeping requirements.
- The Federal Action Plan to Strengthen Internal Trade: At the 2022 Committee on Internal Trade, Minister LeBlanc launched the five-point plan to accelerate efforts to remove barriers to trade and labour mobility across Canada:
- open, transparent, and accessible pan-Canadian data on the state of internal trade;
- stakeholder engagement to better understand internal trade barriers and opportunities;
- research to identify and address trade barriers;
- enhanced funding for the Internal Trade Secretariat to address barriers, and
- a review of the CFTA to reduce federal exceptions.
2023-2024
- Lloydminster Food Trade Pilot: The pilot project allows participating provincially licensed food businesses in Alberta and Saskatchewan to sell across provincial borders within the Lloydminster city limits.
- Endorsed Reconciliation Agreement Second Amendment on Pan-Canadian Occupational Health and Safety: The Government of Canada agreed to include filtering respirators into the Pan-Canadian Occupational Health and Safety Reconciliation Agreement, setting a common standard across multiple jurisdictions and providing access to domestically produced filtering respirators.
- Online stakeholder portal: The Government of Canada launched a stakeholder submission portal to directly share insights on obstacles and innovations to internal trade.
- Budget 2023: Committed to developing a Federal Framework on Mutual Recognition for regulatory standards to ensure goods and services move more freely. Additional investments that support internal trade included:
- Loan forgiveness for family doctors and nurses in rural and remote communities: $45.9 million, starting in 2024–25, with $11.7 million ongoing under the Canada Student Financial Assistance Program to expand eligibility to more rural communities.
- Strengthen Canada’s trade corridors: $52.2 million over five years, starting in 2023–24 to establish a Transportation Supply Chain Office and develop better supply chain data.
- Local Food Infrastructure Fund: $10 million to strengthen food security in Northern, rural and Indigenous communities across Canada.
- Incorporation of Non-medical Cannabis: Non-medical cannabis added to the CFTA.
- Budget 2024: Announced key milestones of the Federal Action Plan to Strengthen Internal Trade:
- Removal and narrowing of one third of all federal exceptions in the Canadian Free Trade Agreement, primarily related to procurement that will provide Canadian businesses more opportunities to compete to deliver government goods and services.
- Canadian Internal Trade Data and Information Hub: Accessible data platform that provides timely, free information to help make choices about where to invest and where to work; and
- Canadian Survey on Interprovincial Trade: First of its kind to engage Canadian businesses on challenges when buying, selling and investing across provincial and territorial borders.
- The Government of Canada also announced additional investments and commitments that support internal trade and labour mobility:
- Canada Housing Infrastructure Fund: $6 billion over 10 years, starting in 2024-25, includes funding to adopt forthcoming changes to the National Building Code to support more accessible, affordable, and climate-friendly housing options.
- Foreign Credential Recognition Program: $50 million over two years, starting in 2024-25, to streamline the recognition of foreign credentials in the construction and health sectors; and
- Effectively integrate internationally educated health care professionals into Canada’s health workforce: $77.1 million over four years, starting in 2025-26, to increase assessment capacity and processing support to navigate credential recognition systems.
- Release of Rationales for Remaining Federal Exceptions: The Government of Canada released rationales for its remaining exceptions under the CFTA on its internal trade website.
- Mutual Recognition Pilot Project in Trucking: The Government of Canada lead a coalition of 10 provinces and territories to launch a mutual recognition pilot project in the trucking sector, the first of its kind on this scale in Canada, at the 2024 Committee on Internal Trade.
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