Results for Canadians

Nationwide, trade barriers have been a long-standing impediment to Canada’s economic and global competitiveness. Enhancing internal trade is a part of the government’s plan to make life affordable, strengthen our supply chains, and grow our economy.

Successes to date

Since the signing of the Canada Free Trade Agreement (CFTA) in 2017, the Government of Canada has demonstrated leadership in achieving meaningful progress to reduce barriers to trade.

Achievements of the Federal Action Plan to Strengthen Internal Trade

• the removal and narrowing of over 60% of federal exceptions under the Canada Free Trade Agreement (CFTA);
  • Government of Canada removing more than half of federal exceptions to the Canadian Free Trade Agreement to strengthen Interprovincial Trade (February 21, 2025)
  • The Government of Canada is making it easier to trade within Canada (July 23, 2024)
  • Removal of Federal Exceptions in the Canadian Free Trade Agreement
• the mutual recognition pilot project in the trucking sector, led by the Federal government and the first of its kind for mutual recognition in the trucking sector between provinces and territories;
• the publication of the results of the Canadian Survey on Interprovincial Trade in Feb 2025, giving insight into the state of interprovincial trade activities and for the Canadian public to better understand trade relationships between provinces;
• the launch of the Canadian Internal Trade Data and Information Hub in April 2024;
• the inclusion of internal trade and labour mobility questions in the 2023 Canadian Survey of Business Conditions with results published in August 2023 and November 2023;
• the opening of an online stakeholder portal for provincial and territorial governments, businesses and industry, and Canadians to directly share insights on obstacles and innovations to internal trade with the federal government, in February 2023;
• establishment of a Transportation Supply Chain Office in 2023 as part of strengthening Canada’s trade corridors;
• creating a suite of support for Canadian farmers and researchers to maintain agricultural innovation, sustainability, competitiveness and market development;
• the completion of research projects on federal priority areas to identify barriers and actionable solutions, such as addressing challenges related to food trade and food security in the Northern Territories; and
• providing federal funds to the Internal Trade Secretariat to advance collaborative work with the provinces and territories, including mutual recognition and better communicating results with Canadians, in 2023.

Additional federal actions

• the removal of federal restrictions on the sale of alcohol in the Importation of Intoxicating Liquors Act, which entered into force in June 2019;
• making National Building Codes available for free, starting November 2018;
• the implementation of the Safe Food for Canadians Act and regulations, which enables regulatory harmonization in the agri-food sector and took effect in January 2019;
• the development of federal regulations in 2019 on electronic logging devices used to keep track of hours worked by drivers in the commercial sector;
• the amendments to Canada’s standards on what goes into making vodka, which were changed in June 2019;
• the amendments to the federal Energy Efficiency regulations for household appliances, which came into effect in June 2019; and
• the exemption of service rig transportation, which usually operates within a small area or in recognized oil and gas fields, from having to complete both a record of duty status and other industry documents to show they comply with work, rest and record-keeping requirements. This was done in September 2022.

Federal, Provincial and Territorial (FPT) collaborative actions

The CFTA establishes a regulatory reconciliation process that will help to address barriers to trade that businesses may experience when doing business across provincial and territorial borders. The process is led by the FPT Regulatory Reconciliation and Cooperation Table (RCT).

Since 2017, the RCT has advanced and endorsed 17 Reconciliation Agreements, achieving, among other things:

• consistent health and safety standards for workers related to fall protection; first aid kits; head, foot, eye, hearing protection; personal flotation devices and life jackets;
• simplified processes to register pressure equipment for boilers, pressure vessels and fittings across jurisdictions;
• alignment of energy efficiency regulations for household appliances such as washers and dryers, ovens and ranges, refrigerators, microwave ovens, freezers and dishwashers; and
• consistent markings to ensure safety for users of waterways regulated by FPT governments.

The successful implementation of 13 of the Reconciliation Agreements required action by the Government of Canada. The federal government has fulfilled its commitments for 12 Reconciliations Agreements with plans to complete the implementation for the remaining Reconciliation Agreement by the end of 2027.

These agreements are resulting in positive economic impact for many sectors across Canada. In the case of the building codes agreement, limiting variations and aligning adoption is estimated to result in an annual economic benefit of $750 million to $1 billion by 2028.

Federal, provincial, and territorial collaboration, outside of the RCT, has also led to significant achievements, including:

• Internal Trade Ministers agreed in 2019 to launch the Federal-Provincial-Territorial Action Plan: Trade in Alcoholic Beverages to enhance internal trade in this sector, outlining commitments to improve consumer choice and greater transparency and access to markets for alcohol producers. 
• The introduction of a streamlined administrative process into the CFTA that allows FPT governments to update its commitments for purposes of trade liberalization.
• The successful inclusion of the non-medical cannabis sector into the CFTA.
• The launch of a pilot project to mutually recognize regulatory requirements in the trucking sector.
• Convening several meetings of the Committee on Internal Trade in early 2025, to address barriers to internal trade with a more streamlined approach:
  • January 31:
    • Committee on Internal Trade discusses bold actions to enhance Canada’s internal market
    • Statement from Committee on Internal Trade ministers
  • February 21:
    • Statement from Minister Anand on progress from the Committee on Internal Trade

The Government of Canada continues to collaborate with the provinces and territories to advance the trade in alcohol file and negotiate financial services into the CFTA.