'We are moving quickly on commitments to improve labour mobility for workers across the country'
Ottawa has taken another step towards streamlining internal trade and bolstering labour mobility across provinces and territories.
The federal government will remove all remaining federal exceptions from the Canadian Free Trade Agreement (CFTA), eliminating all 53 that have existed since the Agreement’s introduction in 2017.
“Removal of all federal exceptions in the Canadian Free Trade Agreement is one of the many recent measures we are taking, following the passing of the One Canadian Economy Act, to eliminate internal trade barriers and cut red tape for Canadian businesses,” said Chrystia Freeland, minister of transport and internal trade.
“We are moving quickly on commitments to improve labour mobility for workers across the country, implement mutual recognition agreements to get goods and services moving, and remove duplication of requirements which for too long have created extra costs and delays for Canadian businesses and workers. We will create one Canadian economy—one with more opportunities for Canadian businesses and Canadian workers, an economy that will put more money in the pocket of every Canadian.”
Recently, the government passed Bill C-5, the One Canadian Economy Act, which will remove federal barriers to internal trade and labour mobility, and advance nation-building projects to drive Canadian productivity, economic growth, and competitiveness.
The CFTA came into force on July 1, 2017, to reduce and eliminate barriers to the free movement of persons, goods, services, and investments within Canada, and to establish an open, efficient, and stable domestic market.
CFTA exceptions are provisions that allow federal, provincial, or territorial governments to opt out of obligations under the agreement—for example, to exclude a specific industry, sector, or legislation.
Ottawa noted that Canadian businesses and industry stakeholders have expressed concern that these exceptions hinder free trade by enabling inconsistent rules, standards, and licensing requirements for goods, investments, and services.
In the face of the US tariffs threat, Internal Trade Minister Anita Anand and her provincial and territorial counterparts have been discussing possible moves to eliminate regulatory barriers to internal trade, encourage free movement of labour and further standardize regulations across Canada.
Leaders, such as the Canadian Chamber of Commerce, the Business Council of Canada and the Canadian Federation of Independent Business (CFIB), note that reducing the number of exceptions in the CFTA will help strengthen internal trade and support the productivity of Canada’s economy, according to the federal government.
Previously, the CFIB called on governments to address the labour quality and mobility issues that small businesses are currently experiencing.
Canadian employers’ business confidence has declined amid mounting economic pressures, according to a previous report from Statistics Canada (StatCan).
And several provinces—including Ontario and New Brunswick—have worked to remove interprovincial trade barriers.
“Canada’s new government is breaking down trade barriers and building one strong economy—connected by Canadian projects, powered by Canadian energy, and crafted by Canadian workers,” said Prime Minister Mark Carney. “Together, we can give ourselves more than any foreign nation can take away.”
Recently, Canada and the European Union (EU) committed to a wide-ranging strategic partnership aimed at reinforcing trade, deepening economic ties, and enhancing labour mobility.
