Patchwork approach threatens Canada's internal trade progress

Small businesses need coordinated efforts and clear timelines from governments

TORONTO, Feb. 25, 2026 /CNW/ - Canada made unprecedented strides toward freer internal trade in 2025, but without coordinated implementation, expanded scope, and greater transparency, governments risk recreating the same fragmented system that has bogged down businesses for generations, finds the Canadian Federation of Independent Business (CFIB) in its latest State of Internal Trade: Canada's progress on internal trade in 2025 snapshot.

"2025 was a breakthrough year for internal trade," said Keyli Loeppky, CFIB's director of interprovincial affairs. "For the first time in decades, governments showed a real appetite for reducing barriers and moving toward a more integrated internal market. But to convert momentum into meaningful change, they must now follow through with clear implementation, consistency, and coordination."

CFIB's 2025 Internal Trade Report Card, released June 30, 2025, recognized the significant progress made in the first half of 2025 with strong grades across several jurisdictions. Since then, provinces and the federal government have delivered several additional milestones, including additional mutual recognition legislation, eliminating internal trade exceptions and most recently signing the landmark pan-Canadian Mutual Recognition Agreement (CRMA).

While the new snapshot gives kudos to governments across the country for continuing to advance the ball, it also warns them of falling short of the goal line. For instance, mutual recognition legislation represents a promising step toward reducing internal trade barriers, its status varies widely across provinces and territories. Many jurisdictions have introduced legislation that is narrow in scope, excludes major sectors such as labour, food, alcohol, or services, or relies on subjective reciprocation requirements that limit its practical impact.

Similarly, while Memoranda of Understanding (MOUs) can help signal political intent and encourage collaboration between governments, they rarely result in binding commitments or offer clear guidance for small businesses. Without transparency on timelines, outcomes, or alignment with legislation, MOUs often leave entrepreneurs uncertain about what changes--if any--will meaningfully occur.

"The next six to 12 months will be critical for determining whether the momentum achieved in 2025 translates into durable, nationwide alignment," said SeoRhin Yoo, senior policy analyst. "Governments must recognize that true progress is not measured by how many agreements are signed, but whether Canadian businesses and residents actually experience fewer barriers and lower costs when trading across provincial and territorial lines. At a time when Canada is facing an entrepreneurial drought, removing internal trade barriers is essential to encourage more small businesses to start up, scale, and expand across provincial borders."

About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 103,000 members across every industry and region. 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.

SOURCE Canadian Federation of Independent Business (Toronto)

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