Nova Scotia and New Brunswick have signed memorandums of understanding to remove trade barriers between themselves and Ontario.
A news release from the Ontario government says these agreements will bolster interprovincial trade.
“Ontario will also work with Nova Scotia and with New Brunswick on a framework for direct-to-consumer alcohol (DTC) sales, so that producers have easier access to new market opportunities, and so that consumers have greater choice and access to a broader selection of alcoholic beverages,” the release says. “This collaboration will enhance economic resilience, create job opportunities and set a precedent for other provinces to follow.”
In February, Nova Scotia Premier Tim Houston introduced legislation to help remove trade barriers and spur greater investments opportunities with other Canadian provinces and territories who pass similar legislation.
Houston said “The Free Trade and Mobility within Canada Act” is meant to signal to other Canadian jurisdictions that Nova Scotia is “open for business.”
“This legislation just makes sense,” said Houston, who is also the minister of Trade for the province. “It will allow goods and services to be sold in Nova Scotia without further testing or red tape and puts trust in other provinces and territories that have appropriate requirements to keep people safe.”
The act is reciprocal and requires other provinces to agree to terms and pass similar legislation, which Ontario Premier Doug Ford indicated he’s on board with at the time.
“There is a goal, a challenge, that has been laid down across the country of free trade in Canada, full free trade in Canada, and across Canada by Canada Day. I don’t know if we’ll make that goal, but Nova Scotia is all in,” said Houston.
On Wednesday the Ontario government said it would introduce the “Protect Ontario through Free Trade within Canada Act,” which focuses on labour mobility and free trade.
Interprovincial exports contribute to roughly 17 per cent of Nova Scotia’s gross domestic product and with trade to other provinces being valued at nearly $29 billion in 2023.
“Today we’re taking a historic step forward to protect and unify our country ... to build on Canada’s economy by tearing down internal trade barriers. The cost to these barriers to our economy is absolutely enormous,” said Ford.
Robert Huish, an international development studies associate professor at Halifax’s Dalhousie University, closely studies sanctions and tariffs. He says Wednesday’s agreement is a good first step.
“These tariffs aren’t necessarily intentional to try and reduce trade between provinces, but they are there and they are having an impact,” said Huish.
While legislation is key to reducing trade barriers, Huish says Canada lacks the infrastructure to support seamless trade across the country.
“We do not have a rail or highway network that connects the country anywhere near to what the United States does,” he said.
New Brunswick
In a separate news release, New Brunswick Premier Susan Holt said knocking down interprovincial trade barriers is one of “the four pillars” of the province’s response to U.S. tariffs.
“Ontario is New Brunswick’s second-biggest trading partner, and we are excited to be building on the positive momentum to reduce internal trade barriers across Canada,” said Holt. “Today’s signing of this bilateral memorandum of understanding commits both jurisdictions to enhance direct-to-consumer alcohol sales and improve interprovincial labour mobility.
“It will also encourage the free flow of goods, services and investment, all while maintaining and strengthening public safety.”
Last month, the New Brunswick government introduced amendments to the “Fair Registration Practices in Regulated Professions Act” that, if passed, would allow workers in regulated professions to start working in new jurisdictions during the registration process.
Prince Edward Island
Earlier this month, the Prince Edward Island government introduced the “Interprovincial Trade and Mobility Act,” which is similar to Nova Scotia’s legislation.
“Leaders across the country are expressing interest in removing trade barriers, and I’m very pleased that P.E.I. and Ontario have tabled legislation to remove all their trade barriers,” said Houston. “This is a significant moment for our country, and these actions say a lot about our commitment to make our economies stronger.”
