CFIB calls for bold government action to remove remaining barriers to boost economy.
Toronto, July 23, 2024 – Canada’s productivity is lagging behind its G7 counterparts, and one in two small businesses say interprovincial trade barriers are part of the problem, according to the Canadian Federation of Independent Business (CFIB)’s latest State of Internal Trade report: Canada’s Interprovincial Cooperation Report Card. Ontario received a C+ grade, ranking sixth out of 14 jurisdictions across the country.
"Recent research found that eliminating internal trade barriers could add $200 billion annually to Canada’s economy,” said Keyli Loeppky, CFIB’s director of Alberta and interprovincial affairs. “Amid soaring business costs, inflationary pressures, high interest rates, and persistent labour shortages, the need to remove barriers is more urgent than ever. Doing so will expand choices for goods and services, secure supply chains, and make life more affordable for all Canadians."
“Premier Ford and the Ontario government have a strong track record of eliminating red tape within the province,” said Ryan Mallough, CFIB’s vice-president of legislative affairs, Ontario. “As the premier takes over the Council of the Federation chair role, it is imperative that he bring that same cross-government leadership and urgency to knocking down interprovincial trade barriers. Small business owners have been telling us that it’s easier to ship some products overseas than to the province next door. That’s unacceptable and needs to be a top priority for the council moving forward.”
This year’s report card evaluates governments on their progress in three key areas: exceptions to the Canadian Free Trade Agreement (CFTA), select barriers to internal trade, and the implementation status of reconciliation agreements. A new bonus indicator was added this year to measure government leadership in the past year in areas beyond these categories.
| Jurisdiction | I. Canadian Free Trade Agreement Exceptions (40%) | II. Select Barriers to Internal Trade (20%) | III. Status of Items from Reconciliation Agreements (40%) | Bonus Indicator: Internal Trade Leadership (2%) | Overall Score and Grade | ||||
|---|---|---|---|---|---|---|---|---|---|
| MB | 9.4 | A | 5.4 | D | 9.6 | A | 0 | 8.7 | A- |
| AB | 10.0 | A | 4.0 | D | 9.5 | A | 0 | 8.6 | B+ |
| FED3 | 7.1 | C+ | 8.7 | A- | 10 | 8.1 | B | ||
| SK | 7.8 | B | 5.3 | D | 9.2 | A | 10 | 8.0 | B |
| BC | 8.1 | B | 4.1 | D | 9.2 | A | 10 | 7.9 | B |
| ON | 6.5 | C- | 5.6 | D | 8.2 | B | 10 | 7.2 | C+ |
| NU | 6.8 | C | 2.0 | F | 8.6 | B+ | 10 | 6.8 | C |
| NT | 7.1 | C+ | 2.0 | F | 8.3 | B | 10 | 6.8 | C |
| NS | 4.7 | D | 5.1 | D | 8.6 | B+ | 10 | 6.6 | C |
| NL | 6.4 | C- | 2.0 | F | 7.7 | B- | 10 | 6.2 | C- |
| PEI | 5.4 | D | 2.9 | F | 7.9 | B | 5 | 6.0 | C- |
| YT | 4.1 | D | 3.0 | F | 8.8 | A- | 10 | 5.9 | D |
| NB | 3.8 | F | 2.9 | F | 8.1 | B | 5 | 5.4 | D |
| QC | 0.0 | F | 3.6 | F | 8.9 | A- | 0 | 4.3 | D |
"Despite some positive steps, including the federal government’s recent 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, overall progress has been minimal,” added Loeppky.
CFIB strongly recommends that governments across Canada move quickly to adopt mutual recognition. This means, for example, that if a business meets health and safety standards in their home province, those standards should be recognized by any other province or territory.
“Why is it easier and cheaper to export food to neighbouring countries than to neighbouring provinces or territories? We need to put ourselves out there and compete with the rest of the world instead of competing amongst ourselves,” said Loeppky. “Governments owe it to Canadians, who are currently undergoing an affordability crisis, to aim higher than mediocrity. To do this, governments must remove barriers and move forward with mutual recognition."
For more information, read CFIB’s full report (The State of Internal Trade: Canada’s Interprovincial Cooperation Report Card).
Dariya Baiguzhiyeva, CFIB
647-464-2814
public.affairs@cfib.ca
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with 97,000 members across every industry and region, including 38,000 in Ontario. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.