Canada’s First Ministers have agreed to a coordinated plan to reduce barriers to internal trade and labour mobility, following the United States’ decision to impose new tariffs on Canadian goods. The agreement came after a meeting between the Prime Minister and provincial and territorial premiers, where all parties recognized the need to increase Canada’s economic resilience and reduce dependence on a single export market.
The First Ministers directed the Committee on Internal Trade to work with the Forum of Labour Market Ministers to develop a plan for Canada-wide credential recognition by June 1. The plan will include a service standard of 30 days or faster to process credentials, making it easier for certified professionals to work in different provinces and territories. Quebec indicated it would apply measures for credential recognition aligned with its own objectives, including linguistic requirements.
The First Ministers also agreed to a comprehensive review of exceptions under the Canadian Free Trade Agreement, with the goal of reducing or eliminating barriers to the free movement of goods, services, and workers across Canada. This review is set to be completed by June 1, adding to exceptions that have already been removed by some governments since the agreement came into effect in 2017.
Another measure endorsed by most First Ministers is the expansion of direct-to-consumer alcohol sales for Canadian products. This would allow consumers to purchase alcohol directly from producers across provincial borders. Currently, British Columbia permits direct-to-consumer wine sales, and Manitoba allows it for all types of alcohol. The Yukon is also exploring options for direct-to-consumer alcohol sales within its territory.
The First Ministers further instructed Internal Trade Ministers to work on reducing regulatory differences between provinces, starting with mutual recognition in the trucking sector and for consumer goods. This would allow products approved for sale in one province to be sold in others without further regulatory approvals. A detailed action plan for mutual recognition of consumer goods is expected by March 31.
Trade between provinces and territories accounted for over $530 billion last year, representing nearly 20 percent of Canada’s GDP. According to federal data, eliminating internal trade barriers could add up to $200 billion to the Canadian economy.
The Prime Minister and premiers agreed to continue working together to implement these measures and promote domestic trade through coordinated efforts such as interprovincial trade missions. The First Ministers concluded the meeting by affirming their commitment to strengthening Canada’s internal economy and improving access to domestic markets for Canadian workers and businesses.
