Toronto 
Ontario has introduced new legislation aimed at eliminating internal trade and labour mobility barriers across Canada. The Protect Ontario through Free Trade within Canada Act is designed to open markets, attract investment, and reduce costs by easing the movement of goods, services, and workers between provinces.
Credit: LCBO
Premier Doug Ford said the proposed law will position Ontario as a national leader in internal free trade, citing the negative impact of interprovincial barriers on the economy. These trade restrictions are estimated to cost the Canadian economy up to $200 billion annually and reduce GDP by nearly 8%.
Key Legislative Measures
- Ontario to Remove All Party-Specific Exceptions (PSEs) Under the CFTA: Ontario becomes the first province to eliminate all PSEs under the Canadian Free Trade Agreement, encouraging other jurisdictions to follow. PSEs have historically protected provincial policies from trade challenges, limiting internal market access.
- New “As of Right” Labour Mobility Rules: Certified workers from other provinces can now begin working in Ontario immediately while completing a streamlined registration. This measure supports skilled worker mobility and reduces administrative delays. This includes regulated health professionals, who would be permitted to work while completing local registration.
- Mutual Recognition for Goods, Services, and Workers: Ontario commits to recognizing goods and professionals already approved in other jurisdictions, provided mutual agreements are in place. This removes duplication in certifications and broadens market access.
- Direct-to-consumer alcohol sales will be permitted between provinces that agree to reciprocal arrangements. This would allow Ontario residents to purchase alcohol directly from out-of-province producers for personal use.
Other Interprovincial Initiatives
- Ontario Together Trade Fund: A new $50 million fund will support businesses looking to expand into interprovincial markets and re-shore supply chains. The fund targets near-term investments to enhance trade resilience.
- MOUs with Nova Scotia and New Brunswick: Ontario signed memorandums of understanding with Nova Scotia and New Brunswick to remove trade barriers and advance mutual recognition, including for direct-to-consumer alcohol sales.
- Annual “Buy Ontario, Buy Canadian” Day: To promote domestic products and labour, the last Friday in June will be designated a day for consumers to support local and Canadian-made goods.
Ontario will also begin consultations to include U.S. health workers, such as nurses and doctors, under the “As of Right” system. This is part of broader efforts to address workforce shortages and simplify credential transfers.
In 2023, Ontario’s interprovincial trade in goods and services totalled $326.6 billion. As 35% of Canada’s trade occurs within its own borders, the Ford government sees eliminating internal barriers as critical to long-term economic growth.
More Information is available here.
