MOU about unlocking 'enormous potential of true free trade within Canada,' says premier
Provincial governments across Canada are continuing their fight against interprovincial trade barriers.
Most recently, Ontario and Manitoba signed a Memorandum of Understanding (MOU) to support the removal of such barriers between the two provinces.
“We’re facing a tariff war on two fronts, and now is the time to build up this country we love so much,” said Manitoba Premier Wab Kinew. “Through this agreement with Ontario, we will unlock more economic opportunities for people in both provinces. As premiers, we are all working toward the common goal of powering our Canadian economy into the future.”
Under the MOU, Ontario and Manitoba have agreed to enhance the flow of goods, services, investment and workers, including through direct-to-consumer alcohol sales and improved interprovincial labour mobility. According to both governments, total interprovincial trade between Ontario and Manitoba was valued at $19.5 billion in 2021.
“Today’s MOU is just the latest step we are taking to unlock the enormous potential of true free trade within Canada, which will lower costs for families and add up to $200 billion to our national GDP,” said Ontario Premier Doug Ford.
Manitoba’s top exports to Ontario include canola oil products and conventional crude oil. Ontario’s key exports to Manitoba include household goods, food and beverages, the Ontario government reported.
The agreement will leverage existing legislation, as well as forthcoming legislative efforts in Manitoba, to continue supporting national economic growth, Premier Kinew noted. Both premiers also encouraged other provinces to introduce legislation and remove trade barriers, including through reciprocal mutual recognition.
Ontario has previously signed similar MOUs with Nova Scotia and New Brunswick.
“Working together with provinces and territories across Canada, we are building a stronger, more competitive and more resilient economy that will protect our workers and communities and tie our country together,” said Ford. He added that he looks forward “to signing additional MOUs with other provinces as we move forward.”
In April, in a move to tackle interprovincial trade barriers, the governments of New Brunswick and Newfoundland and Labrador signed an MOU aimed at enhancing free trade and labour mobility. Following that development, the New Brunswick Federation of Labour (NBFL) urged the provincial government to ensure that worker protections are not compromised in the final stages of negotiations around partnership.
In February, Nova Scotia introduced its Free Trade and Mobility within Canada Act which, the provincial government said, will help remove barriers to trade and investment between the province and other Canadian provinces and territories that reciprocate.
In 2023, Ontario exported $183.9 billion of goods and services to other provinces and territories and imported $142.7 billion, resulting in two-way trade of $326.6 billion and a trade surplus of $41.2 billion, said the provincial government.
Over a third (35%) of Canada’s overall trade takes place within its own borders, said the Ontario government.
Earlier this year, Anita Anand—formerly Canada’s minister of transport and internal trade who has recently taken oath as the country’s new foreign minister—announced the upcoming removal of an additional federal exceptions in the Canadian Free Trade Agreement (CFTA).
Over 8 in 10 (84%) Canadian companies believe the elimination of interprovincial trade barriers will be "extremely or very" important to the survival of their business in a trade war with the U.S., a previous KPMG report noted.
