Canada's productivity is lagging behind other G7 countries: Removing internal trade barriers could boost our economy

CFIB calls for bold government action to remove remaining barriers

TORONTO, July 23, 2024 /CNW/ - Canada's productivity is lagging behind its G7 counterparts, and one in two small businesses say interprovincial trade barriers are part of the problem, according to the Canadian Federation of Independent Business (CFIB)'s latest State of Internal Trade report: Interprovincial Cooperation Report Card. CFIB is urging all levels of governments to take decisive action to eliminate internal trade barriers.

"Recent research has found that eliminating internal trade barriers could add $200 billion annually to Canada's economy," said Keyli Loeppky, Director of Alberta and Interprovincial Affairs for CFIB. "Amid soaring business costs, inflationary pressures, high interest rates, and persistent labour shortages, the need to remove barriers is more urgent than ever. Doing so will expand choices for goods and services, secure supply chains, and make life more affordable for all Canadians." 

This year's report card evaluates governments on their progress in three key areas: exceptions to the Canadian Free Trade Agreement (CFTA), select barriers to internal trade, and the implementation status of reconciliation agreements. Additionally, a new bonus indicator has also been added this year to measure government leadership in the past year in areas beyond these categories. Overall grades range from disappointing Ds to commendable Bs and just one A-, with some individual area grades being higher.  

The 2024 report card grades are: 

Jurisdiction	Exceptions to the   CFTA		Interjurisdictional Barriers   to Internal Trade		Status of Items from Reconciliation Agreements		Bonus Indicator: Internal Trade Leadership	Overall   Score and Grade
MB	9.4	A	5.4	D	9.6	A	0	8.7	A-
AB	10.0	A	4.0	D	9.5	A	0	8.6	B+
FED	7.1	C+			8.7	A-	10	8.1	B
SK	7.8	B	5.3	D	9.2	A	10	8.0	B
BC	8.1	B	4.1	D	9.2	A	10	7.9	B
ON	6.5	C-	5.6	D	8.2	B	10	7.2	C+
NU	6.8	C	2.0	F	8.6	B+	10	6.8	C
NT	7.1	C+	2.0	F	8.3	B	10	6.8	C
NS	4.7	D	5.1	D	8.6	B+	10	6.6	C
NL	6.4	C-	2.0	F	7.7	B-	10	6.2	C-
PEI	5.4	D	2.9	F	7.9	B	5	6.0	C-
YT	4.1	D	3.0	F	8.8	A-	10	5.9	D
NB	3.8	F	2.9	F	8.1	B	5	5.4	D
QC	0.0	F	3.6	F	8.9	A-	0	4.3	D

"Despite some positive steps, including the federal government's recent efforts to reduce trade barriers and enhance data availability, the launch of the RCT's online portal for Canadians to identify regulatory barriers, and the Atlantic provinces' new Technical Safety Agreement, overall progress has been minimal," noted Jairo Yunis, Director for BC and Western Economic Policy for CFIB.

CFIB strongly recommends governments across Canada move quickly to adopt mutual recognition. This means, for example, that if a business meets health and safety standards in their home province, those standards should be recognized by any other province or territory.

"Why is it easier and cheaper to export food to neighbouring countries than to neighbouring provinces or territories? We need to put ourselves out there and compete with the rest of the world instead of competing amongst ourselves," concluded Loeppky. "Governments owe it to Canadians, who are currently undergoing an affordability crisis, to aim higher than mediocrity. To do this, governments must remove barriers and move forward with mutual recognition." 

For more information, read CFIB's full Canada's Interprovincial Cooperation Report Card.

About CFIB

The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.

SOURCE Canadian Federation of Independent Business

For media enquiries or interviews, please contact: Dariya Baiguzhiyeva, CFIB, 647-464-2814, [email protected]