Canada Strengthens Internal Trade -- Boosting Business Growth
Twenty additional federal exceptions will be removed from the Canadian Free Trade Agreement (CFTA), reducing the total number of federal exceptions from 39 to 19, The Honourable Anita Anand, Minister of Transport and Internal Trade announced on Friday, February 21, 2025.
Most of these exceptions are related to government procurement, thereby giving Canadian businesses a broader opportunity to compete nationwide.
With the threat of US tariffs, making inter-provincial trade easier has become a key focus to keeping the Canadian economy healthy.
“One of Canada’s strongest trading partners is… Canada. We are all hands on deck to promote freer trade here at home," said Minister Anand. "The removal of these federal exceptions from the CFTA is yet another step towards eliminating barriers to internal trade, reducing costs for Canadian businesses, increasing productivity and foreign investment, and adding billions to the Canadian economy.”
In July 2024, 17 exceptions were either removed or narrowed, marking a significant move towards enhancing trade within Canada.
Since the agreement’s inception in 2017, 64% of the federal exceptions have been eliminated, signaling the government's continued push for freer trade.
Removing internal trade barriers is expected to lower business costs, improve productivity, and contribute up to $200 billion to Canada’s economy.
In 2024, over $530 billion worth of goods and services were exchanged across provincial and territorial borders, accounting for nearly 20% of the country’s GDP.
Minister Anand emphasized the importance of collaboration at all levels of government—federal, provincial, and territorial—to ease the burden on Canadian businesses.
Government of Canada urged all provinces and territories to reduce their own exceptions under the CFTA, as the government works to further enhance internal trade and labour mobility across the country.
Photo Credit: Pexels Anna Nekrashevich