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Interprovincial trade has taken on greater significance in recent months, particularly in response to the tariff dispute with the United States. The federal government frequently reiterates its commitment to a single Canadian economy.

However, while many barriers to trade fall within provincial jurisdiction (such as labour mobility or transport regulations), the federal government also has tools at its disposal to reduce them. The tabling of the federal budget November 5 offers an opportunity to give renewed momentum to liberalization.

The benefits of interprovincial trade are spread across the country, while the costs may be concentrated in specific provinces or sectors. The provinces are not required to take a holistic view of the national interest. The federal government is.

So far, Ottawa has stuck to measures that are relatively easy to implement and inexpensive. They have been largely symbolic, and their impact on trade limited. If it truly wants “one Canadian economy,” the federal government cannot sit idly by.

Why barriers are difficult to remove

Despite the initiatives launched in several provinces since the winter of 2025, progress has slowed and barriers remain. In his contribution to our series Barriers and Bridges: Rethinking Trade within the Federation, published in October 2025, former Quebec premier Philippe Couillard rightly pointed out that, following this initial wave, the remaining barriers “will be particularly difficult to resolve because they involve issues that are politically sensitive and objectively necessary for the provinces and the exercise of their prerogatives.”

Several factors stand in the way of full liberalization of trade between the provinces. The first is primarily political, as public opinion often favours protectionism. ‘Buy local’ policies make for a more appealing electoral proposition than the more diffuse benefits of greater economic integration.

Also, regulatory barriers can arise from rules specific to certain professional regulatory bodies, which remain difficult to navigate. And one significant barrier will always remain: the vast size of the country. Investing in transportation infrastructure is undoubtedly one of the best ways to improve the movement of goods........

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