The Government of Canada is making it easier to trade within Canada

OTTAWA, ON, July 23, 2024 /CNW/ - Today, the Honourable Dominic LeBlanc, Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs, announced that the Government of Canada is removing barriers to help commerce move more freely within Canada.

Trade within Canada is a key piece of our economy. It drives commerce, creates jobs, facilitates business expansion and gives Canadians more choice. This is why we are taking action and leadership by addressing long-standing internal trade barriers, and removing or narrowing one-third of all federal exceptions under the Canadian Free Trade Agreement (CFTA).

Business community leaders, such as the Canadian Chamber of Commerce, the Business Council of Canada and the Canadian Federation of Independent Business, note that reducing the number of exceptions in the CFTA will help strengthen internal trade and support the productivity of Canada's economy. We have heard from stakeholders and in response, the Government of Canada has removed or narrowed 17, or one third, of its federal exceptions in the CFTA. Most of the exceptions removed relate to federal government procurement, providing Canadian businesses with more opportunities to be competitive across the country.

Already, the Government of Canada has shown leadership in strengthening internal trade through the implementation of key measures, including the launch of the Canadian Internal Trade Data and Information Hub, engagement with stakeholders and industry, and work with provinces and territories to advance regulatory and internal trade cooperative efforts to eliminate barriers.

These efforts were recognized in the annual Canadian Federation of Independent Business (CFIB) State of Internal Trade: Canada's Interprovincial Cooperation Report Card. The report grades federal, provincial and territorial governments' efforts to address interprovincial trade barriers. This year, the Government of Canada received a significantly improved rating of "B", the third highest rating of all federal, provincial and territorial governments.

As the government continues to work towards making further changes to the CFTA, even though the actions taken today have removed the most significant barriers to success for businesses, we encourage all provinces and territories to similarly take steps to publicly share the rationales for any of their remaining exceptions.

The Government of Canada will continue to build on these successes and collaborate with provinces and territories to accelerate efforts to advance internal trade across the country. This includes developing a comprehensive Federal Framework on Mutual Recognition, which will help us bring provinces and territories to the table with the goal of cutting red tape and allowing goods and services to move freely across the country. This includes moving towards full labour mobility in the construction, health, and childcare sectors. Canada's economy will best succeed when all orders of government are working towards a common goal.

Quotes

"The further removal of exceptions under the Canadian Free Trade Agreement reflects our government's commitment to listen to industry and help Canadian businesses get their incredible products to more consumers. We will keep taking action within our areas of jurisdiction to strengthen our supply chains, grow the economy, and make life more affordable for all Canadians, while encouraging our provincial and territorial partners to do the same."

—  The Honourable Dominic LeBlanc, Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs

Quick Facts

• 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.
• The Canadian Free Trade Agreement (CFTA) came into force on July 1, 2017, to reduce and eliminate barriers to the free movement of persons, goods, services, and investments within Canada and to establish an open efficient, and stable domestic market.
• Under the CFTA, the Government of Canada has taken exceptions to ensure it can uphold Canadian interests such as national security, national economic and social policy, international trade obligations, or its responsibility to support regional interests.
• The CFTA seeks to establish an open, efficient, and stable domestic market. The CFTA exceptions are portions of the agreement that can be taken by federal, provincial or territorial governments, to exclude an industry, sector, or legislation from the agreement. Canadian business and industry have expressed that these exceptions can hinder free trade by allowing for inconsistent rules, standards, and licensing requirements for goods, investments and services. Leaders, such as the Canadian Chamber of Commerce, the Business Council of Canada and the Canadian Federation of Independent Business, note that reducing the number of exceptions in the CFTA will help strengthen internal trade and support the productivity of Canada's economy.
• The remaining exceptions are required in order to uphold Canadian interests, such as national security, international trade obligations, regional interests and national social and economic policy. The rationales for remaining federal exceptions are being published on the Government of Canada's Internal Trade website.

Associated Links

• Internal Trade
• Federal Action Plan to Strengthen Internal Trade

Stay Connected

https://www.canada.ca/en/intergovernmental-affairs.html

SOURCE Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs

For more information (media only), please contact: Jean-Sébastien Comeau, Deputy Director of Communications, Office of the Honourable Dominic LeBlanc, Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs, 343-574-8116, [email protected]; Media Relations, Privy Council Office, 613-957-5420, [email protected]