COMMITTEE ON INTERNAL TRADE MINISTERS TAKE ACTION TO MAKE SIGNIFICANT PROGRESS ON REDUCING INTERNAL TRADE BARRIERS

TORONTO, March 1, 2025 /CNW/ - Ministers are taking action to make it easier to do business in Canada and grow the domestic economy. On February 28, the Committee on Internal Trade (CIT) met in Toronto to continue their discussions on reducing internal trade barriers in Canada, and to provide a progress update on their recommendations to First Ministers. The impending threat of tariffs from the United States on Canadian products continues to underscore the need to take strong actions to support internal trade.

CIT originally met on January 31, at the direction of First Ministers and had meaningful discussions focused on four critical areas essential to facilitating internal trade in Canada. Through open dialogue and mutual cooperation, multiple recommendations were developed in good faith by all parties in each of the priority areas.

During the February 28 meeting, which was chaired by Minister Cleveland, progress was made on the following recommendations that were endorsed by First Ministers on February 4, 2025:

1. Enhancing the commitments under the Canadian Free Trade Agreement (CFTA) by conducting a rapid review of all party-specific exceptions (PSEs) and concluding the financial services negotiations;
2. Prioritizing mutual recognition on priority goods or sectors to reduce regulatory and administrative burden, including having all governments join the Mutual Recognition Pilot Project in the trucking sector.
3. Working with the Forum of Labour Market Ministers to further facilitate labour mobility;
4. Other sectoral priorities, including that willing jurisdictions advance a Direct-to-Consumers sales system for alcohol, and that an enhanced domestic Team Canada trade promotion approach is explored.

The collaborative efforts between federal, provincial, and territorial (FPT) governments underscores the importance of a unified approach to internal trade. These efforts are not only strengthening Canada's domestic economy but also enhancing its resilience against global threats and challenges.

CIT Ministers remain dedicated to maintaining the positive momentum which they have built over the past months. The constructive and shared nature of the discussions thus far has set the stage for continued progress. Moving forward, CIT Ministers are committed to:

• Continuing to implement the recommendations put forward to First Ministers swiftly and effectively.
• Continuing to engage with Canadian stakeholders, businesses and workers, to ensure that the measures taken are practical and beneficial.

As Canada navigates this era of global uncertainty, the CIT's efforts to strengthen internal trade and enhance economic growth are more crucial than ever. This work will help ensure that our domestic economy remains resilient, and that Canadian businesses and workers can thrive in an increasingly uncertain global economy.

The CIT commits to reporting back to First Ministers in advance of their meeting next week in order to update them on the progress made on the recommendations.

www.cfta-alec.ca

Quick Facts

Canadian Free Trade Agreement

• The CFTA is a consensus-based agreement that is overseen by the CIT, which is comprised of FPT Ministers responsible for internal trade. The Northwest Territories is the 2025 Chair of the CIT.
  
  
• The CFTA establishes rules that apply across the Canadian economy and govern pan-Canadian trade. Rules apply automatically to all economic activity unless something is specifically excluded.
  
  
• Exclusions occur within the CFTA, such as through General Exceptions (Chapter 8), Party-Specific Exceptions (Annex 1, Annex 2, and Procurement), Legitimate Objectives, and Non-Application Exceptions (such as in Chapter 5).

Internal Trade

• Over $530 billion worth of goods and services moves across provincial and territorial borders every year—equal to 20 per cent of Canada's gross domestic product. In 2023, one-third of Canadian businesses participated in internal trade by buying or selling goods across provincial and territorial borders.
  
  
• In comparison, in 2023, Canada was the United States' largest trading partner, with more than $1.3 trillion worth of bilateral trade in goods and services.

Committee on Internal Trade & Recent Accomplishments

• The CIT is comprised of FPT ministers responsible for supervising the implementation of the CFTA, including oversight of a number of working groups established under the Agreement, assisting in the resolution of disputes, approving the annual operating budget of the Internal Trade Secretariat (ITS), and considering any other matter that may affect the operation of the CFTA.
  
  
• At the 2024 CIT meeting, FPT governments endorsed and launched the 2024-2027 Internal Trade Action Plan, which will further facilitate internal trade by:
  • Reducing regulatory burdens and cutting red tape to unlock new opportunities for trade between provinces and territories for businesses in Canada;
  • Increasing awareness and better communicating the strengths of Canada's internal trade environment to champion the Canadian economic advantage;
  • Enhancing our understanding of internal trade across Canada to help guide and prioritize government efforts to open doors for new trade opportunities; and
  • Strengthening government collaboration to enhance labour mobility and further facilitate the movement of qualified workers throughout Canada.
    
    
• Further, at the 2024 CIT meeting, participating federal, provincial and territorial governments (Canada, Ontario, Nova Scotia, Manitoba, Prince Edward Island, Saskatchewan, Alberta, Newfoundland and Labrador, British Columbia, New Brunswick, Northwest Territories, Yukon, and Nunavut) launched a new Mutual Recognition Pilot project in the Trucking Sector to explore where FPT governments could recognize one another's regulatory requirements while ensuring levels of safety are maintained or strengthened. As of February 28, Quebec has also joined.
  
  
• In September 2024, a new portal was launched on the CFTA website to increase engagement and communication with Canadian businesses engaged in internal trade. The portal allows stakeholders to share information on internal trade that may be impacting themselves or their communities, as well as success stories enabled by the CFTA.

SOURCE Internal Trade Secretariat

Contacts: For more information (media only), please contact the Internal Trade Secretariat at [email protected].