Every day, Canadians pay inflated prices for goods due to artificial barriers between provinces.
This self-inflicted economic wound is costing billions, and it's time to put an end to it.
Section 121 of the Constitution of Canada reads: "All Articles of the Growth, Produce, or Manufacture of any one of the Provinces shall, from and after the Union, be admitted free into each of the other Provinces."
That's about as clear as you can get.
Unfortunately, it's been ignored, and trade barriers across Canada have been a major deterrent to economic progress for nearly a century.
Project Confederation has championed the national free trade cause since our founding in 2019, making it a cornerstone of our mission.
Now, United States President Donald Trump is threatening a staggering 25% tariff on imports from Canada and Mexico, with a reduced 10% tariff specifically on Canadian energy products.
Suddenly, reducing trade barriers within Confederation has become a pressing priority.
Interprovincial trade restrictions continue to cost the economy billions, weaken national cohesion, and leave Canadian businesses and consumers vulnerable to external pressures.
The United States remains Canada's largest trading partner, but excessive reliance on any single market exposes the country to economic risk.
Removing interprovincial trade restrictions would strengthen internal supply chains, reduce costs, and create a more resilient domestic economy.
Protectionist policies, such as supply management and regulations in the telecom, media, and banking industries, do more harm than good.
These policies drive up prices for consumers, stifle competition, and discourage investment.
The economic impact of interprovincial trade barriers is well-documented.
Research suggests these restrictions add between 7.8% and 14.5% to the price of goods and services, from essential groceries to industrial materials.
Eliminating these barriers would immediately benefit consumers and businesses, fostering growth and innovation across the country.
In addition, calls for retaliatory tariffs in response to U.S. protectionism are misguided.
Any attempt to punish American businesses will only result in higher costs for Canadians.
Instead of engaging in a trade war that Canada cannot win, the focus should be on making domestic markets as competitive and open as possible while fostering open collaboration with our American neighbours.
The federal government cannot credibly advocate for free trade on the world stage while maintaining internal barriers that undermine its own economy.
Canada should lead by example by prioritizing free trade at home.
Building a stronger internal market will reduce reliance on the U.S., making Canada more competitive in the global economy.
Historical and regional considerations cannot be ignored, but they should not be used as an excuse for inaction.
Canada has had the constitutional framework for free trade since 1867, yet provincial governments continue to impose restrictions that harm national economic unity.
As external economic pressures mount, Canada has a choice: continue to tolerate internal divisions that weaken its economy or embrace free trade within its own borders.
Removing interprovincial trade barriers is the best way to insulate Canada from external shocks while fostering a stronger, more prosperous economy for all Canadians.
Project Confederation will continue to advocate for unrestricted internal trade as a cornerstone of Canadian economic policy.
Canada cannot afford to wait for another crisis before taking action.
Political will is the primary obstacle to reform.
The time to break down these barriers is now.
