Canadian leaders push for free trade nationwide amid tariff turmoil

Canada plans a 30-day labor mobility rule by June 1

Canadian leaders push for free trade nationwide amid tariff turmoil

Canadian provincial leaders and the federal government are working to ease internal trade barriers following the recent chaos caused by the United States' decision – now delayed for most Canadian imports – to impose punishing tariffs on Canadian goods.

The announcement came after a meeting between Prime Minister Justin Trudeau and provincial premiers, where they agreed to reduce restrictions on the movement of goods, services, and labor across provincial borders.

A joint statement from the first ministers said they will advance measures to allow goods and workers to move more freely.

According to CTV News, the Committee on Internal Trade and the Forum of Labour Market Ministers have been tasked with developing a 30-day service standard for labour mobility approvals by June 1.

One key provision allows professionals certified in one province to work in any other province without additional regulatory processes. Internal Trade Minister Anita Anand told CTV News that the agreement seeks to address the regulatory differences between provinces that have created barriers for businesses and workers.

The alcohol industry is one of the first to see changes. Most provinces—excluding Newfoundland and Labrador and Prince Edward Island—have agreed to allow direct-to-consumer sales of Canadian alcohol products. Nova Scotia premier Tim Houston said negotiations are ongoing with the remaining provinces.

Economic and political responses

The agreement comes amid economic concerns in cities like Saint John, New Brunswick, which the Canadian Chamber of Commerce has called the country's most "tariff-exposed" city.

Saint John Mayor Donna Reardon told CTV News that easing internal trade could help local economies but may also challenge industries currently protected by provincial regulations.

Saint John-Rothesay MP Wayne Long described the agreement as a necessary shift given the uncertainty surrounding US-Canada trade relations. He said businesses in his district, including Irving, Moosehead Breweries, and Cooke Aquaculture, could benefit from increased interprovincial trade opportunities.

Food industry excluded from agreement

The food industry remains outside the scope of the agreement.

Sylvain Charlebois, director of Dalhousie University's Agri-Food Analytics Lab, said on social media that provincial control over supply management quotas continues to restrict interprovincial food trade.

According to Charlebois, these restrictions cost Canadians between C$200 and C$250 annually, amounting to approximately C$9 billion in grocery expenses.

Charlebois noted that current regulations require federal licensing for food producers to sell across provincial lines—a process that is costly for smaller operations. He suggested that removing these barriers could increase market competition and lower food prices.

While the timeline for implementing the changes remains unclear, Houston told CTV News that reducing internal trade barriers could open new market opportunities across Canada.

What impact do you think these changes will have on the Canadian economy? Share your thoughts in the comments below.