Canada’s internal trade barriers remain under scrutiny as the federal, provincial, and territorial governments take steps to reduce the red tape limiting labour mobility, economic growth, and cross-border cooperation. In interviews with The Review, federal and provincial representatives explained their priorities for harmonizing interprovincial trade and significantly reducing economic losses.
Québec Minister for the Economy Christopher Skeete noted that fixing fragmented legislation, dealing with sector-specific issues, and a willingness to negotiate with other provinces were the best steps forward at this time.
“We are a federation with 14 parliaments… and the sum of those different regulations and legislations are what create the trade barriers within Canada,” Skeete said. “What we need to do is get together, have a conversation about harmonizing where we can, and we must recognize each other’s laws individually.”
Argenteuil–La Petite-Nation Member of Parliament (MP) Stéphane Lauzon shared Skeete’s view: “We must make sure that we’re talking about one country, not multiple specific regions. The Prime Minister said it again in the Throne Speech, he wants to build one economy.”
Glengarry-Prescott-Russell Member of Provincial Parliament (MPP) Stéphane Sarrazin said, “Especially in our region where it’s really close to the Québec border, I think it’s more important that we work toward a more unified approach.”
Lauzon highlighted that turbulent markets, the ongoing trade war, and the unpredictability of the United States trade policy under Donald Trump have raised concerns. He said the provinces and territories must work together instead of relying on goods and trade from the United States.
“We have no book for that… it changes every week, every day,” Lauzon said regarding economic uncertainty.
Skeete estimates that Québec loses approximately $10-25 billion annually due to trade barriers, not the $70 billion estimated by the Montréal Economic Institute. He viewed this as an overestimation by the institute.
Language and Culture
Furthermore, Skeete suggested that discussions surrounding Québec’s language and culture protections do not mean these topics are barriers to interprovincial trade.
“I don’t see language as a barrier, I see it as something that enriches Québec and enriches Canada as a whole. It’s not a barrier so much as it is a way of doing business in Québec,” Skeete clarified.
When referring to Bill 112, the new legislation introduced by Skeete on May 30, he explained that it aims to reduce interprovincial trade barriers by promoting the “free flow of goods and labour between Québec and other provinces and territories.”
Lauzon also called for collaboration while acknowledging Québec’s unique identity and culture. He framed this cultural distinctiveness as a reality, not a trade barrier.
“Québec has protections for the language, the economy, and the environment, among others. We have to respect every group that wants to be involved in the decision-making process in our province while ensuring that businesses understand the way things are done here,” Lauzon stated.
Construction and Trucking
Additionally, Skeete wishes to see changes in sector-specific issues such as construction and trucking.
“People in Ontario work in Québec and vice-versa. We’re working on a pilot project to extend business hours and to see what it looks like when the province harmonizes its rules to people on the other side of the border, considering how geographically close the provinces are,” Skeete said.
The Gatineau-Ottawa and Grenville-Hawkesbury corridors are seen as prime candidates for the pilot trade reforms due to their economic interdependence.
Individuals wishing to work on either side of the Québec/Ontario border, for example, face difficulties in these sectors as Québec has a significant number of permits required for construction workers.
Québec requires roughly 30 different permits for construction workers, compared to only five in Ontario. Additionally, some of these Ontario permits do not have a Québec equivalent, making recognition of skills and qualifications more difficult.
“How do I recognize a permit from Ontario when the equivalent permit doesn’t exist here? Those are the gaps we’re seeing,” Skeete said.
“Trucking, also, has been an irritant for a long time. The trucking industry has told us they don’t want mutual recognition… They want us to harmonize. I think if we can harmonize with the rest of the country, there would be an increase in security for everybody,” Skeete explained.
Sarrazin echoed Skeete’s concerns: “What we’ve seen here for many years is the construction workers being able to come to Ontario, while our workers are not able to work in Québec. This is one of the most important issues for the riding.”
“Our premier, Doug Ford, is having discussions with all premiers, including Mr. Legault of Québec, and hopefully we’ll be able to reach an agreement,” he continued.
Lauzon said, “When talking about construction, or other industries like aviation, aluminum, and agriculture, we need to be more flexible and more open with Ontario and the other provinces and territories.”
Transparency and Openness
Skeete noted: “What’s really important in interprovincial trade negotiations is transparency. All the restrictions and opt-outs that we’re going to have implemented are going to be publicly available, that way, business and industry will know exactly what they’re dealing with when operating within our province.”
Skeete further emphasized that transparency and goodwill are key to resolving potential disagreements between the provinces and territories, though he warned that reciprocity could add bureaucratic hurdles and uncertainty for businesses.
“I would encourage against reciprocity and suggest everybody do what we’ve done—be open to everybody. If all 14 of us do that, then we get exactly what we’re looking to do anyway, and there’s no need for reciprocity,” Skeete concluded.
Sarrazin explained that the Ford government introduced Bill 5 “to make it easier for us to do business in Ontario and protect our jobs,” highlighting that Ontario’s strength is that there are a lot of competent people in all sectors across the province.
“I’m working to protect Ontario jobs and make sure we create the best conditions possible for attracting businesses from across the globe. We want to ultimately make it easier for our people to do business here,” Sarrazin said.
Lauzon also encouraged transparency in decision-making, stating, “My constituents are always able to reach me if they are concerned about the interprovincial trade barriers. I’m very aware that many are stressing out about the economic situation in Canada, but I’m here to reinforce my dedication to transparency and openness.”
While meaningful reforms remain under discussion, all three elected officials agreed that transparency, collaboration, and sector-specific changes are necessary to build a more unified Canadian economy as interprovincial cooperation continues to evolve in the coming months.
