Federal Government to remove some barriers to interprovincial trade

The federal government said today it will break down trade barriers between provinces by removing 20 out of 39 exceptions to the Canadian Free Trade Agreement (CFTA).

Most of the exceptions removed relate to government procurement. Removing them will allow businesses greater opportunity to compete across the country, the federal government said in a news release today.

The announcement comes at a critical time for Canadian trade, as the threat of 25 per cent U.S. tariffs on Canadian goods and reduced cross-border trade still looms.

The Canadian Free Trade Agreement is an intergovernmental trade agreement between the federal government and the provinces and territories. Reviews of the agreement have removed 64 per cent of exceptions from the agreement since it was launched in 2017.

In 2024, more than $530 billion worth of goods and services moved between provinces and territories, representing almost 20 per cent of Canada’s GDP. Business and industry groups have previously advocated for the lifting of barriers to strengthen internal trade in Canada.