February 3, 2025
Dear Premiers,
As you know, recent months have been extremely challenging for businesses across Canada, given the uncertainty in both the U.S. trade relationship and in our own future national leadership.
As CEOs of provincial and territorial chambers of commerce, we call on you – Canada’s premiers – to lead the way with immediate, comprehensive action to dismantle the internal barriers to trade within our country.
At a time of geopolitical uncertainty, rising protectionism and looming tariff threats, addressing internal trade barriers is no longer an option; it’s a necessity. These barriers cost businesses and consumers billions of dollars annually, driving up expenses and limiting growth. Some researchers have likened this to a 21 percent tariff.
Removing internal trade barriers would not only spur economic growth but also strengthen Canada’s resilience to external threats to our trading markets. Statistics Canada has estimated that removing these barriers could boost Canada’s GDP by as much as seven percent, which could be worth $200 billion to our economy. Others have estimated that doing so could boost GDP per capita by 3.8 percent. Any way one looks at it, this would be greater than the potential impact of proposed U.S. tariffs.
Since internal trade reform would also boost government revenue by over $15 billion, it also presents a powerful counterweight to rising deficits, increased borrowing costs, and growing demands to deliver critical services and invest in needed infrastructure. It’s a way to ease financial pressures, enhance productivity, and generate revenue that can be reinvested into communities across the country.
While we welcome initiatives such as the Canadian Free Trade Agreement (CFTA) and regional collaborations such as the New West Partnership Trade Agreement (NWPTA), the job is nowhere near done. Provinces and territories must accelerate regulatory harmonization, streamline credential recognition, and address persistent trade irritants.
As noted in your Council of the Federation communique, “internal trade is pivotal to the growth of businesses in every province and territory, in particular for small and medium sized enterprises.” Now is the time to act on this vision.
Our provincial Chambers of Commerce, along with our partners at the Canadian Chamber of Commerce, stand ready to partner with you to achieve this shared vision – and to help make the case for internal free trade to Canadians from coast to coast to coast. We are pleased to attach some ideas for action.
Opportunity is not a matter of chance; it’s a matter of choice. For Canada, this is your moment to lead.
*View the names and signatures of all Chamber CEOs who have signed this letter, as well as an appendix with proposed actions in the PDF linked below.