Canadian Government Makes Moves To Strengthen Interprovincial Trade

On Feb. 21, Canadian Minister of Transport and International Trade Anita Anand announced the Canadian government will remove 20 federal exceptions in the Canadian Free Trade Agreement (CFTA), reducing the number of federal exceptions from 39 to 19. (In July 2024, the government removed or narrowed 17 CFTA exceptions. Exceptions are portions of the CFTA that can be taken by federal, provincial or territorial governments, to exclude an industry, sector, or legislation from the agreement.)

The CFTA came into force on July 1, 2017. Its goal is 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.

The majority of the newly removed exceptions relate to government procurement, providing Canadian businesses greater opportunity to compete across the country. The government said eliminating the barriers will reduce business costs, increase productivity, and potentially add up to $200 billion to the Canadian economy.

The Canadian government encouraged all provinces and territories to take similar steps to reduce their own CFTA exceptions.

“One of Canada’s strongest trading partners is… Canada,” Minister Anand said. “We are all hands on deck to promote freer trade here at home. The removal of these federal exceptions from the CFTA is yet another step towards eliminating barriers to internal trade, reducing costs for Canadian businesses, increasing productivity and foreign investment, and adding billions to the Canadian economy.”

Last year, more than $530 billion worth of goods and services moved across provincial and territorial borders, representing almost 20 percent of Canada’s gross domestic product.