Canadian Prime Minister Mark Carney may have overpromised during his election campaign when he pledged to eliminate interprovincial trade barriers by Canada Day.
During his April election campaign, Carney repeatedly promised to achieve “free trade in Canada by Canada Day.” On April 5 in Toronto, he said his government had “committed to remove all federal restrictions on mobility by Canada Day.” By April 20 in Ottawa, he pledged: “We will legislate the removal of all federal restrictions by July 1st, free trade in Canada, by Canada Day.”
However, the federal government cannot unilaterally eliminate most interprovincial trade barriers, which result from provincial regulations enacted under their “property and civil rights” constitutional power.
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The federal government can only remove its own exemptions from the Canadian Free Trade Agreement — it has already eliminated 20 of 39 federal exceptions. But barriers involving professional licensing, trucking standards, and alcohol distribution remain under provincial jurisdiction.
A 2023 Montreal Economic Institute report found 245 exemptions to the Canadian Free Trade Agreement across all provinces and territories. Courts have limited federal trade powers to matters of “genuinely national scope,” meaning Ottawa needs provincial cooperation for most barrier removal.
Carney’s post-election throne speech now promises to table legislation by July 1 rather than complete barrier removal, indicating that his campaign timeline may have been unrealistic from the start.
The Prime Minister’s Office estimates removing interprovincial trade barriers could expand Canada’s economy by 4% to 8%. Carney has positioned the initiative as part of Canada’s response to US tariffs imposed by President Donald Trump.
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