Ontario government opens up interprovincial trade

The Ontario government has tabled legislation to remove its Canadian Free Trade Agreement exceptions, adopt mutual recognition with reciprocating provinces, liberalize labour mobility, and allow direct-to-consumer sales of alcohol.

The Protect Ontario through Free Trade within Canada Act will unlock free trade and labour mobility within Canada.

This legislation will, if passed, create new opportunities for job creation and investment attraction, supporting economic integration across Canada and cutting costly and unnecessary red tape to help protect and grow Ontario and Canada’s economies.

"For too long, we've let red tape and endless regulations hold back our economy, making us vulnerable to external threats, including from President Trump's tariffs," said Premier Doug Ford. "Not anymore."

Trade barriers within Canada cost the economy up to $200 billion each year and lower gross domestic product by nearly eight per cent. These barriers also increase the cost of goods and services in Ontario by up to 14.5%.

Ontario’s plan, including the measures in the Protect Ontario through Free Trade within Canada Act, will support free trade and mobility across Canada by:

• Becoming the first province in Canada to remove all its party-specific exceptions (PSEs) under the Canadian Free Trade Agreement (CFTA) without exception and encouraging other provinces and territories and the federal government to follow suit.

• Allowing workers from other parts of the country to come and work in Ontario by enabling the government to remove labour mobility barriers, reduce administrative burdens and simplify the movement of certified workers across Canada. By expanding labour mobility with new “As of Right” rules, Ontario will allow certified workers from other provinces and territories to begin working in Ontario immediately while they complete a streamlined registration process.

• Enabling mutual recognition with reciprocating provinces and territories, so that goods, services and registered workers that are good enough for other parts of Canada are recognized as good enough for sale, use or work in Ontario. The province has signed MOUs in this regard with Nova Scotia and New Brunswick.

• Moving to allow more regulated health professionals in good standing to begin practising in Ontario while they wait for registration in an Ontario health regulatory college. The government will also begin consultations to allow American health professionals to be included under these new “As of Right” rules.

• Enabling direct-to-consumer alcohol sales with reciprocating provinces and territories so that consumers will be able to purchase alcohol directly from producers across Canada for personal consumption. Nova Scotia and New Brunswick have already agreed to participate.

Ontario is also launching the new $50 million Ontario Together Trade Fund to help businesses make near-term investments so they can serve more interprovincial customers, develop new markets and re-shore critical supply chains.

Kelly Higginson, President and CEO of Restaurants Canada, welcomed the move in a press release.

"Every premier in Canada should be looking to Ontario and doing what it did yesterday on interprovincial trade,” said Higginson. "It's also important to highlight the leadership of Nova Scotia and New Brunswick on this issue. We'll only have true free trade within our borders once every province acts."

Restaurants Canada has been advocating for the removal of interprovincial trade barriers for years. With the US tariff war threatening Canada’s food supply chains, it's more important than ever that Canadian businesses and producers can trade freely across provincial borders.

Ford and Finance Minister Peter Bethlenfalvy committed at Restaurants Canada’s RC Show in Toronto last week to increase the discount restaurants and bars receive at LCBO from 10% to 15%.

Restaurants Canada is calling on all provinces to use the tools at their disposal, such as removing internal trade barriers, to help foodservice businesses regain their footing amid the ongoing trade dispute with the US.