Eliminating regulatory hindrances to competition could boost Canada’s gross domestic product by 6.5 to 10 percent, according to the “The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada” report commissioned by the Competition Bureau.
The report noted that due to consistent issues with productivity, Canada’s regulatory environment is one of the least competition friendly. It suggests that regulations for the energy, transportation, retail distribution, and professional services sectors are overly restrictive; relaxing the rules to drive competition would improve innovation and contribute to narrowing the productivity gap with strong economies.
The study indicated that such reforms could be effected without impacting critical regulatory objectives like health, safety, security, and environmental protection. It would also enhance Canadians’ living standards.
Moreover, the changes could reduce internal trade barriers, simplify the process of transitioning across provinces for workers, and drawing increased investor interest from overseas. According to acting competition commissioner Jeanne Pratt, the study reveals the potential gains for Canada in launching a “pro-competitive regulatory reform across all levels of government.”
“The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada” is an independent, peer-reviewed study conducted by NEOMA Business School’s Gilbert Cette, Université de Bourgogne’s Jimmy Lopez and Océane Vernerey, and the LUISS Lab of Economics and Energy Transition’s Giuseppe Nicoletti. It applied industry data from 15 Organization for Economic Co-operation and Development countries.
The report was released in the International Productivity Monitor.
Last month, the Ontario government implemented ‘as of right’ labour mobility and mutual recognition regulations that it described as the first of their kind. The draft regulation published under the Ontario Free Trade and Mobility Act, 2025 progresses the mutual recognition of goods and services from fellow reciprocating Canadian jurisdictions, supporting free trade across Canada and tackling internal barriers.
The Ontario government also signed economic cooperation memorandums of understanding with 10 Canadian provinces and territories.