Ottawa announced the abolition of the last 53 federal restrictions included in the Canadian Free Trade Agreement (ALEC), in a statement on Monday. This is what Prime Minister Mark Carney had promised to accomplish by the 1is July 2025 during his electoral campaign. But many remains to be done to liberalize the interprotrovincial trade, believe experts.
Most exceptions concern public procurement, and their abolition will give Canadian companies more possibilities to conclude markets across the country
can be read in the press release.
The CEO From the Ontario Chamber of Commerce, Daniel Tisch, applauds the efforts of the federal government. However, he believes that there is still a lot of work to do.
Make hundreds of contradictory inconsistencies and standards are not done overnight.
According to the President and CEO of the Ontario Chamber of Commerce, the most difficult is to come.
Photo: The Ontario Chamber of Commerce
Standards differ widely from one province to another, explains the president, which is spoken of inspection of meats, transport or even household appliances.
We try to dismantle a whole canvas of different regulations that have existed for over 150 years
he explains.
Even if the Federal abolishes its barriers, the provinces have the last word, explains in turn the author and researcher specializing in interprovincial trade, Ryan Manucha. Each province decides on the restrictions it wishes or not to keep.
Ryan Manucha is a researcher at the CD Howe Institute and is interested in questions relating to interprorvincial trade.
Photo: Gracyity: Ryan Manucha
The ball in the provinces courtyard
Until now, the majority of the provinces have been working in the same direction.
Mutual recognition agreements (ARMS) have also been signed between Ontario and certain provinces in recent months, including Nova Scotia, New Brunswick and Manitoba.
Manitoba and Ontario have concluded an agreement to eliminate trade barriers between the two provinces.
Photo: the Canadian press / Laura Proctor
In Ontario, the government has any advantage in lowering its commercial barriers with the other provinces, according to experts.
Ryan Manucha believes that the abolition of commercial barriers between Ontario and the rest of Canada could bring to the province at least 2 % of its Start.
A question of transport
The main economist at the Canadian Center for Alternative Policy, Marc Lee, doubts the real efficiency of the abolition of trade barriers. According to him, there are better solutions.
Since the adoption of theALEC In 2017, business obstacles are minimal, explains the economist. He then believes that the abolition of these restrictions will not have the expected effect and that financial gains will not live up to what has been proposed, more than 200 billion dollars.
The real problem related to interprorvincial trade is more a matter of transport and proximity, he says.
It is much easier to do business with the United States, due to the north-south proximity, than west.
You have to invest in a trans -Canadian railway
said the economist.
By improving rapid and efficient transport and investing in it, the incentives to trade with the United States will be less important, according to Lee.
With Metro Morning information
