Ontario Makes Move to Strengthen Free Trade in Canada

New legislation aims to reduce vulnerability to external threats

With the legislature resuming this week, the Premier wasted no time moving forward with his plan to Protect Ontario.

Today, Premier Doug Ford, Nova Scotia Premier Tim Houston, New Brunswick Premier Susan Holt, and Minister of Economic Development, Job Creation and Trade Vic Fedeli announced new measures being introduced to unlock free trade and labour mobility within Canada. Interprovincial trade barriers are estimated to cost Canadians $200 billion annually.

Part of today’s announcement included Minister Fedeli introducing the Protect Ontario through Free Trade within Canada Act, which aims to create new job opportunities and support economic integration across Canada.

Highlights

• The $50 million Ontario Together Trade Fund will help businesses make near-term investments to serve more interprovincial customers, develop new markets, and re-shore critical supply chains.

• Premier Ford signed memorandums of understanding (MOUs) with Nova Scotia and New Brunswick to bolster interprovincial trade and signaled a willingness to do the same with other Provinces/Territories. In summary, Ontario will allow free trade of goods and services with any other P/T in Canada that reciprocates.  

• An upcoming consultation will focus on breaking down barriers between Canada and the U.S., specifically for nurses and doctors who want to work in Ontario using the “As of Right” rule.

• The government is removing labour mobility barriers, reducing administrative burdens, and simplifying the movement of certified workers across provinces. Credentials attained in another province will be recognized in Ontario, and vice versa, extending to skilled trades, healthcare professionals, and more.

• Ontario is enabling direct-to-consumer alcohol sales with provinces and territories that agree to reciprocate.

• Premier Ford is calling on all Canadian provinces to get on board and support greater interprovincial cooperation.

Analysis

Today’s legislation and MOU signing demonstrate Premier Ford is continuing to lead the provinces’ response to the Trump Administration’s effort to reshape the global economy. The Ford government is exercising a long-overlooked ability by provinces to strengthen trade partnerships within Canada. By focusing on reducing its reliance on the United States through building relationships with other international trading partners, in addition to increasing trade within Canada, Ontario will reduce its vulnerability and threats to its economy.

In the past, there has been a natural deferral by provincial governments across the country to the federal government when it came to matters of trade. This led to Ontario and other provinces following the natural gravity and ease of trade with the US, while trade within Canada became harder. We are now seeing provinces like Ontario and those in Atlantic Canada, who are even more exposed from a trade perspective, taking charge and seizing an opportunity that has always existed, to open free trade within Canada.

Since President Trump began using tariffs to reshape the global economy, we have seen a growing sense of unification and patriotism amongst Canadians, and it is in part, this renewed sense of nationalism that is behind these public policy decisions by governments. Governments are seeing a window, supported by the electorate, to make changes and correct deficiencies that have held provinces and the country back.

Today’s announcement by the Ford government is an example of acting while this window is open. More of these fundamental shifts in policy are expected in days and weeks ahead and when this window of opportunity closes, and it will, the economic landscape will have shifted for the better in Canada having been led by Ontario.