Solutions to unleash internal trade
Our advice to the heart of Ottawa 

SUBMISSION TO THE PRIVY COUNCIL OFFICE, GOVERNMENT OF CANADA 

May 14, 2025

The Canada West Foundation was invited by the Privy Council Office to provide advice on how to reduce internal trade and labour mobility barriers in Canada. This rare and direct request from the highest levels of government is a strong signal of our growing influence, national relevance and leadership on one of the country’s most urgent economic challenges.

We responded with clear, practical recommendations that go beyond symbolic gestures. Our advice charts a path to greater national productivity, stronger east-west supply chains and a more unified Canadian economy.

The Problem

Despite being one country, Canada still acts like a patchwork economy. Barriers between provinces hold back businesses, workers and entire regions—undermining growth, affordability and competitiveness.

Our Response

1. Reassess the focus on federal exemptions under the Canada Free Trade Agreement

While removing the few remaining federal exemptions under the Canada Free Trade Agreement may be politically symbolic, their practical impact is limited. The greater gains lie in deeper structural reforms.

2. Reaffirm Constitutional Commitments: Champion a Modern Interpretation of Section 121 to Support Economic Unity  

A broader interpretation aligned with the original spirit of Confederation could serve as a legal and symbolic foundation for advancing internal economic integration.

3. Lead regulatory harmonization efforts

Facilitating interprovincial alignment on regulations—such as in trucking, inspections, and product packaging—will reduce duplication and remove unnecessary trade frictions.

4. Improve labour mobility and economic integration for newcomers

Federal leadership to establish joint credential assessment bodies—especially for immigration pre-arrival—would address systemic inefficiencies and improve outcomes for both newcomers and employers.

5. Address infrastructure bottlenecks and approval delays

Clarifying federal processes and timelines for project approvals and investing in a national trade corridors strategy will better support east-west supply chains and internal competitiveness. 

6. Review legislation with unintended regional consequences

We encourage constructive dialogue on the effects of legislation such as Bills C-69 and C-48, with an openness to amendments that better reflect regional realities without compromising national objectives. 

7. Modernize Canada’s approach to supply management

A well-structured transition plan would support affordability, enhance international trade readiness, and improve access for Canadian consumers.  

This isn’t just a Western issue. It’s a national opportunity. If Canada is to “Build Big, Build Bold, Build Now,” as Prime Minister Carney has said, we must start by removing the internal barriers that block our own progress.

Let’s Make This Moment Count

We’re sharing this with our partners, supporters and the public to build momentum for action. We invite you to:

Together, we can help turn this vision into reality.