The Canadian Federation of Independent Business has called for government action as the Committee on Internal Trade (CIT) prepares to meet this week.
Nine jurisdictions introduced separate mutual recognition legislation, and several have signed Memoranda of Understanding over the summer. However, the federation cautioned against a “patchwork” approach to mutual recognition that could create overlapping and confusing rules.
“While this past year has been a turning point for internal trade, governments keep signing agreements that look good on paper, but don’t translate into fewer barriers and lower costs on the ground. Amid ongoing trade tensions, we need governments to get out of the way of small businesses,” said Keyli Loeppky, CFIB’s interprovincial affairs director, in a statement. “We’re calling for bold action to ensure another signed agreement is not just a patchwork of rules or recycled announcements that only add more red tape.”
Loeppky pointed out that shipping food and alcohol products overseas was often cheaper and easier than shipping domestically.
The CIT is set to deliver a pan-Canadian mutual recognition agreement on goods (excluding food and alcohol) by December. The CFIB urged governments to broaden mutual recognition agreements to cover food, alcohol, labor, and services; it also called for federal and provincial governments to align on internal food trade.
The federation asked governments to greenlight the direct-to-consumer shipment of alcohol before May 2026 and release a a multi-year action plan with clear timelines, deliverables and accountability.
“Small businesses are tired of waiting. Every delay and meaningless MOU means lost opportunities, higher costs for Canadians, and more frustrations. We need a coordinated, transparent plan that transforms how we move goods and services across the country – not just more talk,” said SeoRhin Yoo, CFIB’s senior policy analyst for interprovincial affairs, in a statement.
The CFIB indicated that it would be monitoring the results of the CIT meeting.