:
I'm calling the meeting to order.
This is meeting number 31 of the Standing Committee on International Trade.
You have received a draft study budget for the free trade within Canada study. Could we adopt that before I start with witnesses?
Some hon. members: Agreed.
The Chair: Pursuant to Standing Order 108(2) and the motion adopted by the committee on Thursday, February 12, 2026, the committee is commencing its study of free trade within Canada.
We have with us today, from the Canadian Federation of Independent Business, Corinne Pohlmann, executive vice-president, advocacy. Welcome back to our committee.
From Manufacturiers et Exportateurs du Québec, we have Julie White, president and chief executive officer, by video conference.
From QSL International Ltd., we have Robert Bellisle, president and chief executive officer, by video conference.
Welcome to you all.
We will start with opening remarks.
Ms. Pohlmann, I invite you to give opening remarks of up to five minutes, please.
:
Thank you for the opportunity to be here today to speak about the state of internal trade in Canada.
The Canadian Federation of Independent Business represents more than 103,000 small and medium-sized companies across every sector of the economy and every region of Canada. For our members, internal trade barriers affect their ability to grow, hire, move goods and compete every single day.
Our latest internal trade survey shows that 63% of smaller firms have sold goods or services, or purchased goods or services from another province or territory in the past 12 months, with about three in four stating that they would likely expand to new or additional markets across Canada if internal trade barriers were reduced.
CFIB's interprovincial trade report card from 2025 and our progress report from earlier this year show that Canada has finally begun to make meaningful headway. In fact, more progress was made in 2025 than in the eight years following the signing of the Canadian Free Trade Agreement in 2017. Governments deserve recognition for that momentum.
Our message to you today is straightforward: Small businesses still do not experience Canada as one open domestic market. Much of the recent progress remains uneven, incomplete and fragile. Let me highlight a few key barriers that remain.
First, Canada is still operating as a patchwork of rules rather than as a single economy. Mutual recognition has been a major focus, and that is welcome. However, what CFIB hears from business owners is confusion. As of today, mutual recognition may exist in principle, but does not exist consistently in practice. Many provinces have adopted it with different scopes, different exclusions, additional paperwork and, in many cases, with reciprocal requirements attached. The result is that a product or service that is legal in one province often still needs to be reapproved in another. From a small business perspective, that's not real mutual recognition. It's old barriers wearing new labels.
Second, major sectors that matter most to small businesses remain excluded or are only partially addressed. This includes services, food, alcohol, and labour mobility, which are repeatedly identified in CFIB's research as some of the most persistent and costly internal trade barriers. This includes small business frustrations with differing occupational and health standards and safety equipment and needing to register in multiple worker compensation boards across the country.
Alcohol is another clear example. Businesses were told that direct-to-consumer shipping would be allowed, yet with the implementation deadline just a month away in May, most provinces have made little visible progress, with the exception of Manitoba and New Brunswick. That uncertainty is holding back investment and growth, especially for small producers.
The third barrier is that labour mobility continues to be undermined by regulatory duplication. Small businesses continue to face delays when hiring across provincial lines because of inconsistent certification requirements, duplicative paperwork and slow approval processes. CFIB's members tell us that this adds time and cost in a moment when skilled labour shortages remain a serious challenge. Internal trade reform will not succeed if workers still face barriers to moving to where the jobs are.
Finally, there's a lack of clarity and transparency for businesses on the ground. Announcing agreements or signing MOUs is not enough. Small business owners need to know what has changed, when it will change and how it applies to them. Too often the reforms are announced with no clear timelines, no plain language guidance and no accountability for results.
What does CFIB believe needs to happen next?
First, governments must fully and consistently implement pan-Canadian mutual recognition without reciprocal conditions and with very limited exceptions. Mutual recognition must be clear, automatic and enforceable or it will not deliver results.
Second, mutual recognition must be expanded to cover services, food, alcohol, and labour mobility. These are not small issues. They are central to the Canadian small business economy.
Third, governments need to publish clear implementation plans, including timelines, sector-by-sector coverage and practical guidance for businesses. If small businesses cannot see the change, it may as well not exist.
Finally, governments must avoid replacing old barriers with new ones. Pilot projects, carve-outs and slow phase-ins risk recreating the same fragmented system that has held Canada back for decades.
I think it is well understood that eliminating internal trade barriers is one of the fastest and most effective ways to improve productivity, competitiveness and economic resilience. We believe that Canada is closer than ever to achieving genuine free internal trade, but we're really not there yet.
Small businesses need governments to move from momentum to results and from announcements to implementation, so they can start to feel the impacts on the ground and can more easily operate and grow their businesses.
Thank you. I look forward to questions.
:
Thank you very much, Madam Chair.
I would first like to thank you for giving me the opportunity to bring the voice of Quebec manufacturers to this committee today.
Manufacturiers et Exportateurs du Québec, or MEQ, is a business association that is obviously dedicated to growing Quebec's manufacturing sector. Our association represents businesses of all sizes from all manufacturing subsectors in all regions of Quebec.
We represent members' interests, and we support them when it comes to challenges related to labour, competitiveness, innovation and exports. We're also a member of Canadian Manufacturers & Exporters, the trade and industry association founded in 1871.
First of all, it's important to remember that the manufacturing sector is a pillar of Quebec's economy. It ranks first among all sectors based on its weight in the gross domestic product, or GDP, and it contributes 12.3%. We employ over 501,000 Quebeckers. We represent more than 86% of exports and we bring together more than 13,600 businesses. The latest data show that we generated over $219 billion in overall sales. We are at the heart of the economic vitality in many regions of Quebec.
Unfortunately, of all the sectors, manufacturing has been hit hardest by the trade war. A recent study by Desjardins also showed that Quebec was more affected by this situation than the other provinces. For our members, this is a perfect storm that we must fight to remain competitive and get through this period of economic uncertainty.
At a time when we're facing geopolitical upheavals that we are not on top of, it's essential to focus on solutions that we are on top of in Canada.
We've had the opportunity to talk about these various solutions on a number of occasions, but facilitating free trade within Canada is clearly one of them.
Let's face it, this is not a new request from the economic realm. Provincial and federal governments of all stripes have been promising to move forward in this area for decades.
All good crises create opportunities, and we need to seize this opportunity to resolve this issue. We were talking about these challenges during the pandemic. However, no significant short-term changes ensued. If we don't make all the changes needed right now, they will very likely never happen. I agree with what my colleague said earlier, that the past few months have been key and we must continue in that direction.
When we talk to our members about irritants related to interprovincial trade, it's important to tell you that the top irritant is transportation and the supply chain. Mr. Bellisle can talk about that later, but I thought it was important that I point it out. It's a major obstacle to maximizing the opportunities we have here in Canada. For example, I'm told all too often that it's much easier to send products to Florida from Quebec than from the Prairies. This is due to the availability of road infrastructure, differential trucking regulations, the resilience of our rail system and the lack of optimization of the St. Lawrence—Great Lakes corridor.
We've noticed, particularly since the last budget was announced, that significant progress has been made on some of those points, including the designation of the Contrecœur project concerning the Port of Montreal, the money provided for port investments and the desire to establish a new container terminal in Quebec City with QSL.
That said, a number of projects have been dragging on for a long time, and they deserve to move forward quickly. If these projects had been ready prior to what we're experiencing now, they could have had an impact on the current economic benefits.
We mustn't let our drive to move forward on this issue falter. We really need to continue to speed up our efforts.
As for trucking, we remind you of the importance of ensuring more fluidity to reduce transportation times. Mutual recognition of regulations would be a good way to get there.
In that regard, in Quebec, we note that a law has been passed to apply mutual recognition of other provincial regulations to facilitate interprovincial trade. In addition, the act is simple.
It's unrealistic to think that we can harmonize all regulations in all provinces in various fields across Canada, particularly because of the very nature of our federation and the unique features of the various provinces, including French in Quebec. It's possible to simply and easily recognize the regulations of the other provinces.
That applies not only to trucking, but also to a differential set of regulations. Take the manufacturing sector, for example. We represent a lot of manufacturers in the food sector, so that's one of the points we have to look at.
The federal government should take a leadership role in this situation to ensure that everyone follows suit. It should also follow suit itself with respect to added regulations on top of certain provincial ones.
Today, our main recommendation is to accelerate things in this area, ensure the continuity of investments and speed up investments in the logistics chain to ensure that our Quebec manufacturers can better take advantage of all opportunities across Canada.
Thank you for your attention. I look forward to your questions.
:
Madam Chair, members of the committee, as president and CEO of QSL, I would like to thank you for this privilege to share our perspective on the essential role of marine transportation in the Canadian economy and to highlight how our sector is adapting to the current challenges and opportunities in the context of interprovincial trade.
[English]
I will speak to you today about the essential role of maritime transportation in Canada's economy, and more specifically about its importance to interprovincial trade, supply chains and competitiveness.
Maritime transportation is not a niche sector. It's a strategic pillar of our economy. Nearly 80% of the goods Canadians use move by ship at some point in their journey. While only about 5% of our trade with the United States is carried by marine transportation, half of Canada's total imports and exports rely on marine transportation shipping, whether it's finished goods, raw materials or critical industrial inputs. All of these are central to productivity, value creation and Canada's economic sovereignty.
Four major gateways structure our trade flows in North America: the east coast, the Pacific coast, the Gulf of Mexico and the St. Lawrence River-Great Lakes corridor. These corridors do not simply move goods; they support entire industrial ecosystems across both nations and their provinces or states.
QSL is a maritime company based in Quebec that operates in more than 66 port terminals across Canada and the United States, with over 2,000 employees. In Canada, we operate in Quebec, Ontario, New Brunswick, Nova Scotia and Newfoundland. From this vantage point, we see in real time how global economic shifts translate into pressures and opportunities for Canada.
We are currently witnessing significant changes across key sectors. Steel volumes have declined at several Canadian ports, reflecting the slowdown in the automotive sector and in parts of construction. In contrast, aluminum shipments, which once moved by rail to the United States, are now shifting modes and sailing to Europe. At the same time, the wind energy sector has experienced strong growth across Ontario, Quebec and the Atlantic provinces, with components and blades arriving from Europe and Canadian plants moving across the St. Lawrence River, a strategic corridor for the energy transition, while other wind projects are idling in the eastern United States.
The bulk sector, including infrastructure materials and critical minerals, is highly sensitive to geopolitical dynamics, investment cycles and commodity price fluctuations, with the exception of certain essential goods, such as sugar and road salt, which Canadians and Canadian industries rely on daily. The container sector, by contrast, is driven primarily by import and export volumes, with shipping routes shaped by trade flows and terminal handling costs. Maritime transportation plays a critical role across both sectors by offering flexibility and scale. When it operates efficiently, it lowers costs, strengthens supply chains and delivers tangible benefits for businesses and consumers alike.
This brings me to the role of the federal government. It controls several key levers, notably the Canadian port system, border services and aspects of the regulatory framework. It is therefore essential that it be effective in what it already controls. Recent federal programs supporting port infrastructure are welcome and long awaited. The policy direction is correct. The challenge is now execution, and execution must happen faster. The timing could not be better. The maritime sector is currently aligned, mobilized and supportive of the initiatives under way.
This level of alignment across our supply chain is rare and represents a real opportunity to move projects forward efficiently and deliver tangible economic results. However, lengthy consultation and permitting processes, whether environmental or regulatory, remain a major obstacle. These processes are costly for governments but even more so for businesses, particularly when timelines stretch over many years. Respecting environmental and regulatory requirements is not in question, but there is clearly room to streamline processes, reduce duplication among federal organizations as well as provincial and public entities, and shorten timelines without compromising standards.
[Translation]
To illustrate this, we kicked off a terminal project in Sorel-Tracy in 2020. Six years later, consultations are still ongoing, and approvals are pending. One can only imagine the economic benefits that this project might have generated.
[Translation]
The same goes for the request to designate the Port of Québec in Quebec City as an international container port. Naturally, we know that there are no environmental constraints, that no public funding is needed, and that the project would immediately free up a meaningful capacity to process international containers, while also improving productivity through economies of scale.
The St. Lawrence River is a natural strategic axis for short sea shipping between Atlantic Canada, Quebec and Ontario.
I will close by saying that, if we want to keep Canada competitive and face up to today's geopolitical requirements, interprovincial trade is crucial and we absolutely must ease regulations.
:
Thank you, Madam Chair.
Ms. Pohlmann, I will start with you.
The Canadian Free Trade Agreement entered into force on July 1, 2017. Its objectives generally were the improvement of internal trade in Canada.
As I understand it—and I have the benefit of some great research by the support people here at the House of Commons—two bodies were created. The CFTA, the Canadian Free Trade Agreement, established the committee on internal trade and the regulatory reconciliation and co-operation table. Both of those are governmental bodies.
I wonder if you have any insight into what they're producing and their effectiveness. Are they resulting in actual benefits in reducing barriers to internal trade?
:
It's an interesting question.
We were big proponents of the Canadian Free Trade Agreement and had a lot of hope that it would lead to something. We have worked often with the people who are part of the regulatory co-operation table, the people in the civil service of the various provinces and the federal government who work together.
What I think happened, in my opinion.... They're both still active. They both still meet on a regular basis. They don't necessarily consult with the industry much, though we force ourselves into the conversation. They really were focusing on harmonization. They would focus on very specific measures and then work for what seemed like two or three years on trying to harmonize this one very specific measure.
Progress between 2017 and 2025 was extremely slow. I think they had a list of maybe 40 or 50 areas, and they maybe achieved harmonization on about 15. Then, of course, it would go to the provinces for ratification and that would take.... It was just a very lengthy process, with very little to show from it.
I think the idea was right, but maybe the mechanism of trying to harmonize was not necessarily the most effective and expedient. Hence, we have been big fans of mutual recognition as a means of getting there more quickly. Potentially harmonize as you go as well, but the mutual recognition is absolutely important in order for us to move towards that one domestic economy that I think we all see as being important.
:
Thank you, Madam Chair.
Welcome back to Ms. Pohlmann and the other witnesses.
In your opening statement, you mentioned that Canada has accomplished more in this last year in reducing interprovincial trade barriers than over the last eight years. That is great to hear. I know this has been a top priority for our government. All that are federal interprovincial barriers have been eliminated. I understand there are about 53 that have been eliminated. To help the provinces they've taken that leadership role as a catalyst of being able to see more of those barriers being eliminated across provinces.
You also said that there is still this patchwork of rules rather than one economy, and that old barriers are wearing new labels. We heard from MP McKenzie about the information hub and keeping tabs, keeping a score card.
Does the CFIB keep a score card in terms of what your top priorities are and how they're being addressed on interprovincial trade?
:
It's a great question. Everybody seems to say the right thing, but when they come down to actually creating, for example, a memorandum of understanding, as we had many provinces do last year, only two provinces actually did it unilaterally. They put the legislation in where they will work with every other province in the country. They don't need to have a reciprocal arrangement. That was Quebec and British Columbia. All the others have reciprocal arrangements. You have an MOU with Ontario and Nova Scotia that they would work with each other.
That made a huge patchwork. From a small business perspective, let's say I'm an Ontario company and I want to do work in Nova Scotia, Manitoba and Alberta. Do we have arrangements with those other four provinces to the same degree? It actually adds even more complexity to the whole thing. The mutual recognition agreement on goods which was just announced was good. It was something we really welcomed. All the provinces seemed to sign on to it. It's supposed to come into effect by June. We're again hoping to see that this may be for the good side of the equation and will help alleviate some of this reciprocity stuff that was happening, which was really confusing.
Again, we'll have to wait and see, because we see a lot of provinces put in exceptions, “All this, yes, but not this.” It sounds a lot like what we've been going through. The devil is in the details, so as we sit on the other side of it here, we'll have to see what it looks by the end of the year, once these agreements are theoretically in place.
I'm going to start by asking all our witnesses questions about a very simple issue.
When we talk about lifting interprovincial barriers, all kinds of proposals are made. “Barrier” is a bit of a catch-all, by the way. Our committee is in a good position to know what it means. It can be anything and everything.
For example, we've often addressed the issue of non-tariff barriers, whether in the context of international free trade or interprovincial trade. We don't talk about tariffs, but about policy, regulations or ways to limit trade in one way or another.
On this committee, we've often talked about tariff barriers imposed by the European Union. It's not because there are tariffs, but because policies are being invented in terms of scientific or phytosanitary standards, in this case. Conversely, there are Canadian barriers on European electric cars. Anyhow, it's somewhat of a general term.
I support that, as a matter of principle. I'm here out of sympathy. What I have a problem with is this situation possibly undermining the Quebec model and Quebec's distinct nature.
We've often talked about professional orders when it comes to tariff barriers. Does everyone here agree that it's perfectly legitimate to put regulations in place?
Do you agree that the professional orders whose members practise their profession in Quebec can't disregard the knowledge of French requirement that's in effect in the province?
I invite each of the witnesses to answer those questions.
:
Obviously, the issue of interprovincial barriers is a broad one. I agree. That's why each province's model must be taken into account. We're in a federation, and we don't all have the same concerns. We agree that we have to work to build a stronger Canada-wide economy, but we still have to take into account certain aspects that are specific to each province. We have to take into account the requirement related to French in Quebec, but Quebec also has other unique features.
We rely heavily on the issue of mutual recognition. We think it's the way to go to preserve these concerns from one region to another.
Barriers can be related to credential recognition. There may be ways for professional orders to be more agile. The issue of professional orders has long been a major concern. It still is. For example, the Ordre des ingénieurs du Québec has made a lot of progress in this area in the manufacturing sector.
However, there's no doubt that professional orders, as a whole, are not necessarily extremely agile when it comes to recognizing diplomas beyond the specificity related to French. So it's important to work with them to speed things up, because we do have major concerns about certain trades.
:
Thank you very much, Chair.
Thank you to all the witnesses for attending this very important discussion and providing your perspectives.
Ms. Pohlmann, I thank you for your testimony and the reports that you generated at the CFIB on the state of internal trade. It's an issue that I've been working on for some time.
I'd like to focus our discussion on the role of the provinces and territories, because they play a very important part in this endeavour. Of course, the federal government has a role in taking action.
You do advocacy at the provincial level as well. Can you speak to your experience as to the kind of work and pace and effort you're seeing right now at the provincial level in breaking down these internal barriers within Canada?
:
Certainly, I think that it hasn't stopped a lot of companies from continuing to do business across Canada. However, what it has done is added costs to those businesses in order for them to do business across Canada, which we all pay for in the prices for what we do.
I do believe that, over the years, if a business really wants to grow and to move into a new market, they're going to do it. They're going to find a way to do it, but they're going to do it at a cost. It's not just a cost to the business. It's a cost to our economy and it's a cost to consumers.
This is, I think, what we're trying to achieve here. Even in our membership, almost two-thirds are trading with other provinces today, but three-quarters of them want to do more of it. They want to add on to it. They want to add new provinces. Because of those barriers, it's just adding extra costs that they are not necessarily prepared to take on, and that's the lost opportunity, in my mind.
:
Thank you, Madam Chair. It's a pleasure to be here.
I just want to continue from where my colleague, Mr. Mantle, left off.
You said that we don't have free trade in Canada, despite the 's promise that by Canada Day we would have free trade in Canada. You also stated, and I would agree, that there's been a lot of paper being pushed on this.
When we actually look at the results, we see that according to the IMF, Trevor Tombe and others, there are about $200 billion that we could generate from additional economic activity. From your experience and that of your members, how much of that $200 billion has been realized?
:
Thank you very much, Madam Chair.
I'd like to welcome the witnesses to the Standing Committee on International Trade.
My riding, Rivière‑des‑Mille‑Îles, includes Deux‑Montagnes, Saint‑Eustache, Boisbriand and Rosemère. It's the Lower Laurentians.
I'm sure you're aware that there are supply chains there. We're also very well represented in the manufacturing sector in terms of transportation and the aerospace sector.
Ms. White, I'd like to ask you two questions.
First, what kind of standard or regulation causes the most friction between provinces?
Second, could harmonizing the regulations improve Quebec's productivity and competitiveness?
:
Thank you, Ms. Lapointe.
You do indeed have quite a few manufacturing companies in your riding. Two or three weeks ago, I went on a regional tour in your neck of the woods. We had the opportunity to speak with representatives of a number of companies. What we've done is survey our members on several occasions to get as much information as possible. The number-one thing we hear about business opportunities in Canada is that our market is relatively small compared to the international market or the U.S. market, in particular.
Quebec has some major sectors, such as aerospace, in which it's not very easy to do business with another province. That's not how it works. There is a market issue and a type of production issue, which means that companies don't necessarily consider the Canadian market. Eliminating interprovincial barriers won't change that. Some market realities are fixed.
For companies that have the potential to seek markets in Canada, the first thing that comes up is transportation logistics and improving that in terms of time and money. Both aspects are very important. As Ms. Pohlmann said, before deciding whether to develop a new market in Ontario or Manitoba, a business has to take costs into account, and that's still a business risk.
That's really the first thing, which is why it's important to fast-track all supply chain investments, be it in marine transportation or rail company resilience. In recent years, work stoppages have caused a lot of problems. Among other things, that has damaged people's perception of these means of transportation. Some called for simpler trucking rules.
That said, what's important to our members is not necessarily harmonization, once again, but rather recognition of the rules, because there are rules that can be adapted. Our members are used to following them in one way or another.
A number of member companies are already established in other provinces. Having a single Canadian rule for every aspect is not necessarily a good thing. People also want things to move forward quickly. Harmonization takes a lot longer than mutual recognition. If all the provinces agree on mutual recognition, that will reduce costs and the time it takes to adapt to different rules. It could indeed have an impact on productivity, but it would mainly affect business competitiveness. It's really about costs for everyone.
I don't know if my answer is clear.
:
I call the meeting back to order.
We have with us today the honourable Dominic LeBlanc, Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy.
That's a small order you have.
From the Department of Foreign Affairs, Trade and Development, we have Martin Moen, associate assistant deputy minister of trade policy and negotiations. From the Privy Council Office, we have Jeannine Ritchot, assistant deputy minister of intergovernmental affairs, multilateral relations and internal trade.
Welcome to all of you. We very much appreciate your being here today. We will start with opening remarks and then proceed to rounds of questions.
Minister, I invite you to speak to the committee for up to five minutes. There will be ample time for questions from the committee following that. I'll turn the floor over to you, sir.
:
Madam Chair, thank you.
Colleagues, thank you for inviting me, and thank you for welcoming my colleagues from the international trade department and the Privy Council Office.
Madam Chair, through you, thank you to committee members for the important work they're doing on internal trade and free trade within Canada. We think of trade as being outside our borders. We've learned in recent months and years that there's a huge opportunity within Canada. As you know, 520 billion dollars' worth of goods and services move across provincial and territorial borders each year. This is significant, but even more economic activity could be generated if trade within Canada were more open and efficient. The benefits would accrue to actors across the entire supply chain and the Canadian economy, from the manufacturer to the retailer, to ultimately, of course, benefit all Canadians.
[Translation]
Building one Canadian economy is one of the key missions the has established for our government because it's one of the key elements we control to help create jobs and grow businesses and, of course, make life more affordable for Canadians. We've all taken decisive action on this by removing federal barriers to internal trade.
[English]
The Free Trade and Labour Mobility in Canada Act, which Parliament adopted last June, makes it easier for Canadians to work and do business across Canada. Through this act, as colleagues know well, we removed red tape by recognizing provincial requirements for the sale of goods or the provision of services across the country when they overlap with federal rules, allowing workers licensed or certified by a province or territory to work in a comparable occupation in the federal jurisdiction without needing to be recertified. We also removed all the remaining federal exemptions in the Canadian Free Trade Agreement, which, coupled with the legislation I mentioned, means that federal barriers to internal trade are gone.
The work ahead now rests with provinces and territories, our partners in the federation. We are working in concert with them—it's a shared objective among first ministers across the country—to ensure that we get true free trade within Canada.
In November 2025, for example, I was at a meeting in the Northwest Territories. We signed the Canadian Mutual Recognition Agreement on the Sale of Goods making it easier for businesses to sell their products across the country by ensuring that if one jurisdiction deems a good safe for consumption, it's deemed approved in other provincial and territorial jurisdictions across the country.
All governments also agreed to a new memorandum of understanding on interprovincial trucking to improve the efficient movement of goods across the country, including measures such as common standards for signs, flags and lights to reduce necessary border stoppages.
As well, as colleagues know, we negotiated a new chapter, the financial services chapter, in the Canadian Free Trade Agreement, which provides greater transparency and predictability to firms across the country.
On an individual basis, many jurisdictions have shown very considerable leadership on their own. The Government of Ontario, for example, was the first jurisdiction in Canada to follow our lead in removing its exemptions to the Canadian Free Trade Agreement.
Even with these accomplishments, though, we think, collectively, that we can do much more work.
[Translation]
met with his provincial and territorial counterparts in January. At that meeting, the Prime Minister of Canada and his counterparts were very clear about how we must have a shared ambition with respect to internal trade.
I've since met with my fellow ministers responsible for internal trade, and we agreed on a clear road map a few weeks ago. We agreed to harmonize building codes and prefabricated housing approvals by 2026 and to advance digital credential recognition by 2027. We also agreed to extend mutual recognition to the service sector before the end of the year and—I hope we can discuss this—to launch a network of internal trade commissioners to increase interprovincial trade in things such as food and alcohol.
In closing, we are working with our provincial and territorial colleagues to come up with concrete collaborative solutions to eliminate any remaining barriers. As I told you, all premiers of all governments across Canada, no matter their party, wants to build one Canadian economy.
[English]
Thank you, colleagues, for the work you're doing on this issue. I look forward to the conversation over the next number of minutes.
Thank you, Madam Chair.
:
Madam Chair, through you to Mr. Lawrence, that is a critical question. Thank you for asking it.
You're right. We've taken note. We've talked about this in the House of Commons, and many of us have talked informally about the potential upside economic benefit. In a federation like ours, obviously, we do our part and work with our provincial and territorial counterparts. There is still more work to be done.
To be honest, a great number of the barriers that are visible to Canadians, to Canadian small businesses and to Canadian companies seeking to enlarge their markets are, in fact, under provincial jurisdiction. If you look at where the federal government has authority, we all know the sectors of the economy. They haven't traditionally been where we see the barriers that provide that headwind.
Maybe my colleague Jeannine has a specific number in terms of what we think the GDP growth of the country has been in terms of the result of removing the federal barriers. If we don't have that precise number, I'm happy to ask our colleagues at the Department of Finance to try to quantify that and get back to the committee, Madam Chair, through you.
:
If you can get an accurate number and get it back to me, that would be amazing. That's terrific.
You talked about two things on the idea of it being a provincial issue. I agree that they have to be good partners with the federal government.
One thing is that the , during the campaign, didn't state that important fact. In fact, he promised free trade in Canada by Canada Day—that he was able to deliver that. Now you're coming to committee and saying that, no, that's actually impossible. To me, that's a promise broken.
Would you not agree with me on that, Minister?
:
You simplified the promise. I get it.
I guess we could have had sort of a caveat at the beginning of the platform that Canada is a federation. There are sovereign governments with jurisdiction in different parts of the country. We can control what we can control.
All teasing aside, Mr. Lawrence, in the federation there is a great deal of common interest. Some provinces have been ahead of the Government of Canada for a number of years. Years ago, the premier of Alberta, former premier Kenney, passed legislation on mutual recognition in terms of labour requirements for different professions way ahead of any other province.
There's been a lot of common interest. It's come into focus with the election campaign, sure, but also because of the challenges with respect to the United States.
:
Your question is a good one, Mr. Lawrence. I would agree that the Government of Canada absolutely has to play a leadership role in the federation. Two things can be true at the same time. We have to respect the proper provincial jurisdiction in this regard.
I have said this to premiers, and I've said it publicly as well. The first 75% of those barriers are the easiest ones to remove. The next 20% are a little harder. The last 5% will be, to your point, amongst the most difficult, politically, in provinces big and small. Everybody's thinking now of examples that we all know.
I am encouraged by the courageous leadership of a number of provinces, recognizing.... We hear premiers say that we need to be our own best customer and we need to have confidence in each other. If a province says that this good is safe for sale, then why wouldn't we have faith in one another and trust one another? The provinces are saying this to one another and publicly. That's why I'm optimistic that the final part can be achieved quickly, but you're right. The last elements will be harder than the first tranche.
:
Thank you, Madam Chair.
Minister, thank you for being here. Thank you to the witnesses. We're pleased to welcome you to the committee.
When the announcement was made last spring, my reaction was like that of some of my constituents: Why hadn't we thought of opening this market before? That may seem simple to some people, but, in reality, it's not, and there are many reasons why.
Today, almost a year later, I have a question. You may have started answering it earlier, but I'd like us to talk about more concrete things.
What concrete initiatives has the government come up with, in collaboration with the provinces, to facilitate, encourage and help businesses increase interprovincial trade?
Where are these initiatives at?
:
Thank you. That's a very good question.
I can give a few very concrete examples, and Ms. Ritchot or other colleagues can talk about others.
According to the internal trade ministers who were in Yellowknife for the meeting held in November, which was five months ago, the Canadian Mutual Recognition Agreement on the Sale of Goods should have been signed years ago. You're absolutely right.
I don't think Canadians were aware of that, but it wasn't deliberate. It's a bit like for Mr. Lawrence's question. Over the years, the provinces and territories, for reasons that were entirely legitimate and appropriate for them, put together a series of measures that got in the way of Canadian free trade. I would say that mutual recognition on the sale of goods is very important.
We took it to the next level, the sale of services, which makes up a larger portion of the economy than the sale of goods. We made this a priority.
I'll move on to another example. Again, this is in the hands of the provinces, but I find it very encouraging. Eleven of the 13 jurisdictions have agreed to allow direct-to-consumer sales of alcohol as of next month. If you own a vineyard in Nova Scotia and you want to sell your products in Quebec or British Columbia, or vice versa, you'll be able to do so. The provinces have agreed to make that possible by the end of next month. We don't have a horse in this race, but we encourage the provinces to proceed. We're quite happy that they've agreed to do this. That's another example. The other two jurisdictions are going to take a little bit longer.
Those were two concrete examples.
Another great example is trucking. It used to be that if you went from the Port of Halifax to Toronto to change the tires on your truck, you had to satisfy various requirements with respect to tires, first aid kits and fire extinguishers. All of that has been vastly improved thanks to such an agreement.
I tried to cover everything.
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There are also the ports in Saint John, New Brunswick, and, yes, Quebec City.
It goes without saying that a lot of those goods are transported by truck, so highway infrastructure is very important. For Newfoundland and Labrador, ferries are obviously very important. There has to be a ferry system to support trade. When the cost of crossing the Confederation Bridge between my province and Prince Edward Island dropped from $50 to $20, that directly benefited the people of Prince Edward Island and the people of other provinces who wanted to exchange goods.
Regarding rail, I'm not an expert, so I don't know all the details. However, I've attended a lot of meetings during which the major rail companies talked to us about their intermodal stations.
Some areas have huge ports. In Winnipeg, my colleagues are talking about an inland port. At the end of the day, logistical infrastructure is what makes trucking or rail efficient and prevents delays. For example, a rail car might be idle for two weeks, or it could be idle for only two days.
It's kind of the same thing as for international trade, but it's for local trade and internal trade.
:
Thank you, Madam Chair.
Minister LeBlanc, Ms. Ritchot and Mr. Moen, thank you for being with us.
I don't think anyone has a problem with removing barriers per se. Of course, we have to remember that we're not talking about tariff barriers. There aren't any, and interprovincial tariffs are illegal. However, I worry that the term “barriers” could be used to refer to any policy, program or regulation that may be bad but is still legitimate as long as it is implemented democratically by one of the provincial legislatures.
Minister, I know you're a francophone, so you care about the French language. One thing that often comes up in conversations about interprovincial barriers is professional associations.
Do you feel it's important not to interfere in any way in the primacy of French as implemented by the Government of Quebec or the knowledge of French requirement for professional associations operating in Quebec?
:
That's an excellent question, Mr. Savard‑Tremblay.
I want to make sure I grasped the question correctly, because I don't want to say “yes” if the answer is actually “no”.
I can assure you that, in our past and future meetings and conversations with the Government of Quebec, we would never undermine the province's rightful and essential duty: protecting the French language.
That's a roundabout way of answering “yes” to your question. If the question is whether we made a commitment to our partners in Quebec, as witnessed by the other provinces, to do nothing that will diminish the ability of the Government of Quebec to make necessary decisions on such matters as protecting the French language, then the answer is absolutely “yes”. We supported that. We said that. I think I was there when said the same thing to Mr. Legault a few months ago.
You don't have to worry. We agree with you on that.
:
Ms. Lapointe, thank you for your question.
You raised two issues.
I did indeed talk about that in my opening remarks. I have some good news: The provincial premiers agreed to establish this kind of internal trade commissioner service in the meeting with the at the end of January.
When we travel internationally, as David McKenzie and I did when we went to Mexico, we see all the extraordinary work that Martin Moen's colleagues are doing in our embassies and in Canada to help Canadian businesses diversify their markets, seek out clients or build economic relationships outside Canada.
Like many provincial governments, the Government of Canada provides well-oiled services. In fact, I had incredible support on the trade mission I led to Mexico a month and a half ago. However, we never focused on the way they do things for the reasons you mentioned in your question.
For example, the Government of Canada and the provincial economic development departments never told the regional development agencies how we could help businesses in Atlantic Canada, for example, diversify their sales, their clients and their business opportunities in Quebec or the rest of Canada. As for the regional development agencies in Quebec, it's Canada Economic Development for Quebec Regions. For us, it's the Atlantic Canada Opportunities Agency, or ACOA. There are offices in every region of the country.
You're surely better informed on this than I am, but I want to tell you that in early May, in Montreal, there will be a sort of trade show for a few days that will bring together agri-food businesses from across Canada.
ACOA, with the help of the four Atlantic provinces, is currently putting together a delegation of Atlantic business people, whom it will take to Montreal to inform and, with the help of the governments of Quebec and Canada, talk to about business opportunities across Canada. That is exactly what's done abroad.
I have written to my minister colleagues in charge of the regional development agencies to talk to them about this. For his part, the has asked the provincial premiers to designate a lead representative within the provincial departments to join Canada's economic development agencies. The good news is that a lot of work has already been done.
If you're interested, we can arrange for one of the people in charge to provide better examples than just the ones I have given. It's really encouraging and interesting. The provinces have responded well. They were excited.
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You're absolutely right, that's still a problem.
I took part in conversations where the Premier of British Columbia said he wanted to buy Canadian steel or aluminum for some major projects. However, he found that the cost of transporting those products from Ontario or Quebec to the west was often higher than the cost of importing from another country.
That's why Mr. Carney, my colleague Mélanie Joly and, I think, François‑Philippe Champagne announced programs specifically to try to recognize that transportation costs, within reason, shouldn't prevent a province or large corporation from buying a Canadian product or good.
Geography and the cost of transportation are important aspects to consider. I'm not an expert on railways, but I can understand that the cost of transporting steel by train to Prince George, British Columbia, can be very high.
It's important to work on that. It's important to be responsible. I would have no problem accepting that the Government of Canada is helping these companies trade. I think we're doing so.
:
Thank you, Madam Chair.
Good afternoon, Minister. It's a pleasure to have you here today.
I'm going to ask you to don your other hat. My riding is close to the American border, in Beauce. As you know, we do a lot of business there, in a number of sectors. In particular, we're leaders in the steel industry in North America.
You seem to be having a lot of fun today, but businesses are really not having any fun right now. It was said that they were going to hit a wall, but they have reached that point.
My question is quite simple. There have been many issues to address over the past year, and the priority issue hasn't been resolved yet.
You're responsible for negotiations with the Americans. Where are you on that?
:
Mr. Naqvi, that's a very good question.
I think you've worked with the enough to know that he is extremely focused on outcomes and results. He transmits that in his conversations with provinces, such as the Premier of Manitoba this week. He is relentless in asking them to continue to step up. Expediting major projects, “one project, one review”, as an example, speaks to better internal trade indirectly as well.
At the first ministers table at the end of January, just to use the most recent example, I was in those meetings with him. At the dinner the night before with the premiers and then the meeting the following day, he was insistent that there be specific timelines, for example, around mutual recognition in terms of labour mobility in the skilled trades to deal with some of the urgencies in housing, construction and major projects. He's very much focused on that.
Madam Chair, in terms of the specific question, Jeannine could probably add some better examples.
:
Thank you, Madam Chair.
Yes, I can say that we have supported the in organizing a number of first minister meetings that there have been since November 2024. Internal trade has been top of mind for all first ministers.
At the last first ministers meeting, which Minister LeBlanc has referenced, there were a number of key commitments that have hard deadlines, and all first ministers did, indeed, agree to those.
The specifics I can offer to that end are that the first ministers stressed the need for expanding the mutual recognition agreements by the end of 2026. That is what Minister LeBlanc referenced, that there has since been agreement to expand services.
They also agreed to promote greater harmonization for the approval of new building materials and prefabricated homes by the end of the year. That's a very active space as well.
On labour mobility, I believe the minister has already mentioned some of the work being done on digital credential recognition for tradespeople by spring 2027 and accelerating work to prioritize occupational health and safety requirements in the construction sector by fall 2026.
There are ambitious timelines being pursued by all.
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Madam Chair, very directly, Mr. Naqvi, absolutely.
If you think about 11 out of 13 jurisdictions agreeing to allow direct-to-consumer alcohol sales by the end of next month, in a few weeks from now, and enthusiastically and happily agreeing with each other in front of everybody, that was imperative. Think how hard it's been, and think of the different provincial monopolies that have existed for decades.
There's an example. We talk about the hardest part. That's one of the most visible. Some people have private members' legislation on this issue, which is very interesting. “Free the beer”; we've heard that. We've taken note of 's news conference with respect to this. We agree with that, but so do the provinces in the sense that they have taken these concrete steps.
I'm optimistic that the moment behooves all of us to continue that progress and to get to a real free trade economy within the country. I have a lot of optimism about that.
:
Madam Chair, through you, Mr. Zuberi's question is a very good one.
At this time, whether for major projects or housing—we all understand some of the acute challenges around the availability of housing supply, as it speaks to the cost of housing—labour mobility in regulated sectors across the country will be critical. The provinces, as Madam Ritchot mentioned, have committed to.... Some provinces have advanced on their own—I mentioned Alberta previously—very considerably in terms of mutual recognition of, for example, skilled trades.
If we want to build the port at Contrecœur in Montreal, do LNG projects on the west coast—pick your major project—or build residential housing developments big and small in communities big and small across the country, then access to skilled labour is a critical challenge. A lot of skilled labour workers in Atlantic Canada earn their living in western Canada and in other parts of the country. The faster and the more seamless the recognition, the high standard recognition of their competencies....
We had a conversation with provincial ministers about things like, as examples, harmonizing high standards around workplace safety, avoiding falls when you're working on scaffolding or with heavy equipment at heights. Different provinces have different regulations. Some may be more effective than others.
The provinces themselves are saying that instead of forcing somebody to take a third course in workplace safety with respect to a particular issue, they could have common standards and common training. The Government of Canada would be very happy to help the provinces achieve that, as an example.