CFIB calls for urgent removal of interprovincial trade barriers to boost Canada's productivity and competitiveness
Canada's productivity trails behind its G7 counterparts.
One in two small businesses attribute this to interprovincial trade barriers, according to the Canadian Federation of Independent Business (CFIB) in its latest State of Internal Trade report: Interprovincial Cooperation Report Card. CFIB calls for decisive government action to eliminate these barriers.
Keyli Loeppky, director of Alberta and Interprovincial Affairs for CFIB, emphasized the economic benefits of removing these barriers, stating, “Recent research has found that eliminating internal trade barriers could add $200bn annually to Canada's economy.”
She pointed out that in the current climate of high business costs, inflation, high interest rates, and labour shortages, removing these barriers is more urgent than ever. Doing so, she argues, would expand choices for goods and services, secure supply chains, and make life more affordable for Canadians.
The 2024 report card evaluates governments based on their progress in three key areas: exceptions to the Canadian Free Trade Agreement (CFTA), specific barriers to internal trade, and the implementation status of reconciliation agreements.
Additionally, a new bonus indicator measures government leadership in areas beyond these categories. Grades range from Ds to Bs, with only one A- awarded. Individual area grades vary, showing both strengths and weaknesses across jurisdictions.
Jairo Yunis, director for BC and Western Economic Policy for CFIB, acknowledged some positive steps. These include the federal government's 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 are also notable efforts.
However, he noted that overall progress remains minimal.
CFIB strongly advocates for governments across Canada to adopt mutual recognition. For example, if a business meets health and safety standards in its home province, these standards should be recognized by other provinces and territories.
Loeppky questioned why it is easier and cheaper to export food to neighbouring countries than to neighbouring provinces or territories.
She urged governments to remove internal trade barriers, stating, “We need to put ourselves out there and compete with the rest of the world instead of competing amongst ourselves.”
She concluded that governments owe it to Canadians, who are facing an affordability crisis, to aim higher than mediocrity by moving forward with mutual recognition.
