'We're helping Canada unlock up to $200 billion in economic potential and standing shoulder to shoulder to protect Canadian workers across the country'
Ontario and other provincial and territorial governments in Canada are moving forward with measures to support free trade across the country amid the ongoing trade war started by U.S. President Donald Trump.
Premiers from Ontario, British Columbia, Yukon, Northwest Territories, and Nunavut signed two new Memorandums of Understanding (MOUs) to boost internal trade, improve labour mobility, and tear down long-standing barriers to doing business between provinces and territories.
“With President Trump’s ongoing threats to our economy, there’s never been a more important time to boost internal trade to build a more competitive, resilient, and self-reliant economy,” said Ontario Premier Doug Ford. “By signing these MOUs and working together, we’re helping Canada unlock up to $200 billion in economic potential and standing shoulder to shoulder to protect Canadian workers across the country.”
Ontario along with other provinces such as New Brunswick have worked to remove interprovincial trade barriers in the past few months.
Cutting costs for business, opening pathways for workers
Through the new agreements, premiers are working together to eliminate red tape, cut costs for businesses, and open new pathways for skilled workers to move more freely across the country.
“When Ontario and BC team up to knock down trade barriers, it’s good for workers, it’s good for businesses, and it’s good for the people of both provinces,” said Premier David Eby of British Columbia. “Between our provinces, we have more than half of the population of the country. This agreement is key to unlocking one Canadian economy.”
In 2021 (latest available data):
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Ontario-British Columbia trade was valued at $47.9 billion
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Ontario-Yukon trade was valued at $800 million
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Ontario-Northwest Territories trade was valued at $800 million
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Ontario-Nunavut trade was valued at $1.7 billion
With the latest agreements, Ontario has now secured agreements with 10 provinces and territories.
"At a time of global uncertainty, Ontario is proud to be leading a new era of economic cooperation within Canada,” says Vic Fedeli, Ontario minister of economic development, job creation and trade.
“By signing agreements with seven provinces and all three territories, our government is taking unprecedented actions towards tearing down trade barriers, opening new pathways for workers and businesses and helping unlock up to $200 billion in economic potential each year. Together, we will build a more resilient and self-reliant economy, to unlock new opportunities for Ontario industries and strengthen supply chains for generations to come."
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.
Premiers support Prime Minister
Recently, Canadian premiers threw their support behind Prime Minister Mark Carney and the federal government’s negotiations with the U.S. as the protracted trade war between the two countries continues.
Nova Scotia Premier Tim Houston said he has “tremendous confidence” in the prime minister to negotiate strategically, according to a CTV News report.
“I would be worried that if we constrain ourselves, that we have to get a deal by a certain date, that we maybe have to do some things or give up some things or give up some leverage that we might not otherwise have to if we just focus on getting the best deal,” Houston told reporters after a meeting between Carney and the premiers on Tuesday.
Houston also said Canadians are “galvanised” by the threat from the U.S., according to the article.
“It sounds like we’re making some progress, although honestly our trading partner is unpredictable and inconsistent,” New Brunswick Premier Susan Holt said, according to the same report.
“I think the premiers have full confidence in the team that we have negotiating on our behalf,” Holt also said.
Recently, the federal government introduced a new Interim Policy on Reciprocal Procurement, a move aimed at shielding Canadian businesses and workers from unfair trade practices as Canada negotiates a new economic and security partnership with the United States.
