The Ford government is set to table its first piece of new legislation on Wednesday, which it promises will begin the process of removing interprovincial trade barriers across the country.
During its speech from the throne, the government said it would make removing trade barriers between provinces its “first order of business” following a snap winter election.
Premier Doug Ford announced the legislation on Wednesday, backed by New Brunswick Premier Susan Holt and Nova Scotia Premier Tim Houston. The pair are signing free trade agreements with Ontario to “bolster” the movement of goods and services between the three provinces.
Ontario estimates interprovincial trade barriers cost the Canadian economy $200 billion per year and lower GDP by almost eight per cent. The lower end of that estimate, the premier said, would be four per cent.
The Protect Ontario through Free Trade within Canada Act, 2025, is expected to be tabled on Wednesday afternoon.
The Trump factor
The threat of tariffs from the United States and growing economic instability south of the border have pushed Canada to reconsider how its provinces trade with one another.
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The country’s provinces and territories have rules in place that add restrictions to some of goods and services that move between them. Those rules range from different safety or worker standards to not recognizing certain qualifications.
Ford said those internal barriers are holding back the Canadian economy in the same way tariffs could hurt it in the future.
“We’ve been tariffing each other for decades, generations,” he said.
Houston, in particular, has led a push to remove those barriers between provinces and appeared during the recent provincial election alongside Ford to make the push.
He appears to have succeeded in convincing several of his Maritime colleagues to sign up. Nova Scotia, New Brunswick and Prince Edward Island are all in favour of the move, Houston said, along with Ontario.
Other provinces, like Quebec, Alberta and British Columbia, have not yet signed similar agreements.
“We want to reach out to all the premiers,” Ford said, adding it had been “relatively quick” to get the Atlantic provinces on board.
Houston said he thought some premiers may favour the “status quo” but said it was important to get a “coalition of the willing” together as quickly as possible to generate momentum.
How it will work
Ontario’s legislation will implement tweaks and changes to how trade and regulations work between different provinces.
The areas impacted range from labour laws and safety rules to alcohol sales.
As part of the changes, the government is pushing to allow health-care professionals trained in other places to begin working immediately, while they wait for their qualifications to be recognized by provincial colleges.
The same principle would be applied to other industries, like electricians, who could work for up to six months while they complete an application to officially move.
Broader technical standards are also set to be harmonized.
Ontario said it is working to recognize other provinces’ standards for things like high-visibility vests or truck signage so workers don’t need to change when crossing provincial borders.
The government, which has long put alcohol reform at the heart of its policies, said it also plans to make it easier for producers in other provinces to sell directly to Ontario customers.
Officials said details of how that would work, and if it would hurt Ontario alcohol makers, were still being worked out.
Separately, the province is planning to create a Buy Ontario Day on the last Friday of every June to remind people to support local businesses.
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