Canada must eliminate interprovincial trade barriers

Ongoing tariff threats from the United States continue to create instability and uncertainty for Canada, including recent threats to Canadian steel and aluminum.

That has made one thing evidently clear—Canada needs to prioritize its economic self-sufficiency. One key way is to strengthen interprovincial trade (internal trade across provinces and the federal government) by eliminating barriers making that difficult.

Currently, trade barriers between provinces are often more costly than trade barriers between Canada and other nations. For example, in 2023, international trade was worth 66% of Canada’s GDP, while interprovincial trade was only worth 36%. It shouldn’t be easier to trade outside of Canada than within Canada – especially given how resource-rich our country is. This federal government’s anti-pipeline and and-resource development laws and policies and contradictory bureaucratic and legislative barriers all harm Canada’s capacity for internal trade.

Economist Trevor Tombe estimated that eliminating all interprovincial trade barriers would boost Canada’s economy by as much as 7.9% generating an economic boost of $200 billion per year, or $5,100 per person.

In my former roles as the official Opposition shadow minister for Interprovincial Trade, and shadow minister for Export Promotion and International Trade, those barriers were issues I became familiar with and routinely raised with the Minister of Trade.

Interprovincial trade barriers were also cited as a major issue by several expert witnesses who came before the Trade Committee.

Unfortunately, my concerns and those of other Conservatives, as well as concerns raised by key industry representatives, were not addressed or prioritized by the Liberal government. In fact in 2017, the government announced with fanfare what it called a historic agreement for internal trade in Canada. The agreement, however, had over 130 pages of exemptions, an unbelievable level of red tape.

At a time of international trade uncertainty, the glaring results of internal trade not being prioritized by the government over the past nine years has come into full view, with it only now stating it wants to prioritize internal trade. It’s too little too late.

Free trade in Canada will likely not be enough to displace the U.S. market, but Conservatives have a plan to start bringing home more business and make Canada more self reliant and less dependent on forces and countries out of our control by removing interprovincial trade barriers.

The four-point plan includes:

First, within 30 days of forming government, the Conservatives would bring together the premiers to agree on removing as many exemptions as possible.

Second, Conservatives would prioritize an agreement on a standard set of trucking rules to increase the flow of goods in Canada. Thiat standardization is estimated could boost GDP by $1.6 billion.

Third, we would create a Blue Seal professional licensing standard, recognized in each province, so doctors, nurses and engineers could work in all provinces and territories. That would also allow Canadians trained abroad who return to Canada to quickly get certified following Canadian standards.

Last, provinces would be offered a “free trade bonus” to get a deal done. Every trade barrier removed by provinces will generate more GDP, and more revenue – in fact, Scotiabank has predicted removing those barriers would generate an extra $15 billion in annual revenue. Conservatives plan to give that increased revenue back to provinces that remove trade barriers so they can spend it on schools, hospitals, and whatever else Premiers choose.

My Conservative colleagues and I know it isn’t enough to just have a plan, we need to be able to make it happen. Unfortunately, the House of Commons remains prorogued (shut down) by the government, prioritizing its own internal political party politics instead of important legislative work. That means there is also no ability to hold the government to account, question the government, or represent constituents’ voices in Ottawa by MPs. As such, Conservatives are putting Canada first by continuing to call for the reopening of Parliament so MPs can urgently address the threats posed by tariffs and other important issues, including acting on removing interprovincial trade barriers.

Feel free to reach out to me if you have thoughts to share regarding interprovincial trade and/or economic self-sufficiency.

My office also has Canada flags and pins and offers Parliamentary certificates for special occasions or to recognize contributions of residents in our community. Please reach out to 250-470-5075 or t[email protected] if you need assistance with any federal programs.

Tracy Gray is the Conservative MP for Kelowna-Lake Country.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.