Interprovincial booze rules may be easing, but other trade barriers still
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Interprovincial trade barriers were back in the spotlight this week as Canada’s premiers mused about how to deal with new tariff threats from U.S. President Donald Trump at their annual summer meeting.
On Tuesday, a new deal was announced that will see nine provinces across Canada introduce direct-to-consumer alcohol sales following an agreement signed by their premiers.
It’s the latest step in a larger push that started last year to address interprovincial trade barriers across Canada in an effort to boost the country’s economy in the trade war with the United States.
The 2026 edition of the Canadian Federation of Independent Business (CFIB) report card on interprovincial co-operation gave most of the provinces and territories an A, while giving the federal government an A+, in recognition of the progress made toward reducing these barriers through different mutual recognition legislation and/or policies.
“Over the years, we’ve seen a little bit of progress here and there, but last year really kicked things off,” said SeoRhin Yoo, senior policy analyst of interprovincial affairs at CFIB.
But a litany of barriers remain. Here’s a look at some key ones and how they hinder the free flow of goods, services and labour between provinces.
Food production
Navigating a combination of federal and provincial laws regulating food safety can make it difficult and costly for food producers to sell their products outside their home province or territory.
Under federal regulation, food businesses must meet federal requirements under the Safe Food for Canadians Act and be licensed by the Canadian Food Inspection Agency (CFIA) if their products cross borders.
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And while the interprovincial trade of food in Canada is a federal responsibility, the regulation of food produced within a province is primarily a provincial one.
More interprovincial trade is being touted as one potential countermeasure to U.S. President Donald Trump’s tariff threats, but complicated barriers stand in the way. CBC’s Ellen Mauro breaks down why free trade within Canada is so difficult and what needs to happen to get more goods flowing across the country.
That means food producers or food product processors that are provincially inspected can’t move product outside their home province unless they undergo federal inspection.
That can be costly for small businesses, Yoo said.
“It can range from tens of thousands of dollars just to get a licence, but it can be even more when we’re…
Read More: Interprovincial booze rules may be easing, but other trade barriers still