Op-ed by MP Tim Hodgson
One Canada, One Economy: One Canadian Economy Act Removes Internal Trade Barriers and Fast-Tracks Nation-Building Infrastructure
This past Canada Day, Canadians had one more thing to celebrate: the passage of the One
Canadian Economy Act on June 26th, and the official end of federal internal trade barriers in
Canada.
The Act is landmark legislation that does two important things.
First, through the Free Trade and Labour Mobility in Canada Act, it helps build one strong
Canadian economy by eliminating federal trade barriers, enhancing labour mobility, and
creating a unified national market – barriers that have held back Canadian businesses and
workers for decades.
“In this pivotal moment in Canada’s story, it is clear that the conventional ways of doing
business no longer serve us. We must act decisively to secure our future, build big things in
this country once again, and cultivate the strongest economy in the G7. Our goal is clear: to
make Canada an energy superpower.” — The Honourable Tim Hodgson, Minister of Energy
and Natural Resources, Member of Parliament for Markham-Thornhill
What is internal trade? It is the over $530 billion worth of goods and services that are
exchanged across Canadian provincial and territorial borders every year – nearly 20% of our
entire economy. It is Ontarian produce in Manitoba, BC wine in Alberta, and PEI seafood in
Quebec.
But despite how simple this may seem – and how important it is to our economy – for too
long, it has been easier to trade with countries like United States than among ourselves.
The impact of these barriers is like imposing tariffs of nearly 7% — on our own goods, in our
own country. Removing these barriers, on the other hand, could unlock up to $200 billion in
Canadian economic growth.
With our new legislation, that era is over. As of Canada Day, the Government of Canada has
removed the federal obstacles that have prevented the free flow of goods and services
between all provinces and territories. For example, a food product certified as organic
under one province’s standards, or a washing machine meeting a province’s energy
efficiency regulations, are now accepted under comparable federal rules.
The government is also enabling workers to move freely across provincial boundaries and
pursue employment opportunities without federal restrictions. For example, an electrician
certified in Ontario could move to a similar job in Alberta without the extra paperwork. With
these measures, the federal government is clearing the path for all provinces and territories
to follow suit – and many are already on board. As they remove their own barriers, Canada
will operate as one seamless national marketplace, allowing businesses, workers, goods,
and services to flow freely throughout the country.
The economic impact of this approach is substantial. It is estimated that removing
interprovincial trade barriers could lower consumer prices by up to 15%, boost productivity
by up to 7%, and raise Canada’s GDP per capita by as much as 4%. This can translate into
lower prices, expanded business prospects for Canadian companies, and new
employment opportunities across the country. For Canadians, it will make it easier to do
the jobs they want in the regions they want to live in, and cheaper to buy Canadian at the
mall or the grocery store.
But removing trade barriers is only half the equation. Canada also needs the infrastructure
to support that expanded activity. The second major component of the Act tackles this
challenge by reforming how we build big things in this country: nation-building projects like
the roads, bridges, energy systems, and digital networks that can connect our newly unified
economy.
To build a more resilient, secure, and sovereign Canada, the government will accelerate
certain major infrastructure projects by reducing approval times to two years and changing
our mindset from “whether” to build, to “how.” All the while, the government will maintain
rigorous environmental protections and Indigenous consultation requirements.
To move through this process, projects must demonstrate how they will strengthen
Canada’s sovereignty, resilience and security; offer undeniable benefits to Canadians;
support economic growth; and have clean growth potential as we continue to fight climate
change. To evaluate these criteria, and shepherd successful projects, the government is
establishing the Major Federal Projects Office – a dedicated federal body that will serve as
the single point of contact for major infrastructure projects, partner with the provinces and
territories, and stand up an Indigenous Advisory Council that will ensure meaningful
consultation.
These goals are ambitious, and many are waiting to see the further action that follows from
the new Liberal government. But it is clear that Prime Minister Mark Carney and his team
are moving quickly to make good on the promises they presented Canadians during the
election.
Disclaimer- The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Y Media or its affiliates.
