Canada's economy could gain almost 7% in real GDP by removing trade barriers | CBC News

"Canada's economy could gain nearly seven per cent, or $210 billion, in real GDP by fully removing internal trade barriers between the country's 13 provinces and territories, according to a report published Tuesday by the International Monetary Fund (IMF). On average, the barriers are the equivalent of a nine per cent tariff nationally, estimates the report, which was co-authored by IMF researchers Federico J. Diez and Yuanchen Yang with contributions from University of Calgary economist Trevor Tombe."

""The result is a patchwork economy where geography and regulation jointly shape opportunity and where advantages that normally come with scale are muted," the report says. WATCH | Breaking down November's agreement on interprovincial trade: An agreement between all Canadian provinces, territories and the federal government will drop interprovincial trade barriers on many goods except food and alcohol starting in December. Author and researcher Ryan Manucha shares his thoughts on whether the deal will provide real economic benefits to the country."

Full removal of internal trade barriers could increase Canada's real GDP by nearly seven per cent, roughly $210 billion. Internal barriers average the equivalent of a nine per cent tariff nationally and exceed forty per cent in service sectors such as healthcare and education where professional mobility is tightly regulated. Smaller provinces and northern territories face higher relative costs, muting scale advantages and shaping uneven opportunity across regions. Atlantic provinces would benefit most; Prince Edward Island could save nearly 40 percentage points in real GDP per worker. A December agreement will remove many interprovincial goods barriers but excludes food and alcohol.

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