Canada is attempting to harmonize and reduce interprovincial trade barriers to alleviate needless expenses for businesses operating nationally. The aim is to create a more efficient domestic market that bolsters Canadian companies and reduces reliance on external markets. Prime Minister Mark Carney is spearheading this initiative with Bill C-5, though the effort is seen as only incremental rather than transformative. History shows a longstanding interest in easing trade barriers, yet protectionism continues to prevail despite previous agreements and political consensus to improve interprovincial trade.
The fear is that inconsistent rules across provinces—covering everything from products to professional credentials—add needless expenses for businesses trying to operate nationally.
A more seamless domestic market would help Canadian companies to grow at home, making them less dependent on selling abroad.
Liberalizing interprovincial trade holds plenty of econometric promise, but also no small amount of wishful thinking.
The idea rests on a handful of optimistic estimates. In 2019, the International Monetary Fund projected full liberalization could boost gross domestic product by as much as 4 percent.
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