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Tariffs

Canada's Political Odd Couple Fights Protectionism Together

Strategic Insights

— 1 min read

During the darkest days of the COVID-19 pandemic, Canadian Premier Doug Ford and Internal Trade Minister Chrystia Freeland forged a bipartisan bond. Now, they're working together to dismantle barriers to interprovincial trade, driven by a common cause: mitigating the effects of U.S. President Donald Trump's temperamental trade war. Their efforts could add an estimated $200-billion to Canada's gross domestic product.

Key Takeaways:

  • Premier Doug Ford is leading the charge among premiers to eliminate economic barriers within provinces, while Internal Trade Minister Chrystia Freeland focuses on federal barriers that impede internal trade and labour mobility.
  • The pair are working together to rid Canada of protectionism and paternalism that has obstructed the free flow of goods and services across the country since Confederation.
  • Ontario has already reached agreements with Nova Scotia, New Brunswick, and is working on a similar deal with Saskatchewan to remove trade barriers.
  • The France Canada Chamber of Commerce report, Strengthening Canada-EU Trade Relations, highlights the importance of interprovincial co-operation to achieve long-term economic resilience.
  • Existing patchwork of provincial regulations, technical standards, and licensing requirements hurts Canada's negotiation position with other countries, seeking to diversify more trade away from the United States.
  • Removing internal trade barriers could help Canada attract more foreign direct investment and enhance its bargaining power with other countries.

Statistics:

  • $200-billion potential economic growth if internal trade barriers are removed.
  • Ontario exported nearly $196-billion in goods and services to other provinces last year.
  • Since 2017, the inter-jurisdictional Canadian Free Trade Agreement has been in effect, but many problems among provinces and territories remain unresolved.
  • $196-billion: the value of goods and services Ontario exported to other provinces last year.

Sources:

  • A report by the France Canada Chamber of Commerce (Ontario and Manitoba), titled Strengthening Canada-EU Trade Relations: Enhancing Bilateral Trade Ties with France to Mitigate U.S. Tariff Risks.
  • A statement by Premier Doug Ford on Wednesday, working together with provinces and territories to build a stronger economy.
  • A Facebook post by Chrystia Freeland in March, where she wrote "We agreed to slash all economic barriers within our country very, very quickly."

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