In its “State of Internal Trade: Canada’s progress on internal trade in 2025 snapshot,” the Canadian Federation of Independent Business has urged governments to follow through on internal trade initiatives begun in 2025.
CFIB’s director of interprovincial affairs, Keyli Loeppky, described 2025 as “a breakthrough year for internal trade” in a statement, noting that “for the first time in decades, governments showed a real appetite for reducing barriers and moving toward a more integrated internal market.” The federation indicated that that provincial governments and the federal government had delivered on additional mutual recognition legislation and internal trade exceptions; it also inked the watershed pan-Canadian Mutual Recognition Agreement.
Nonetheless, Loeppky highlighted the need for “clear implementation, consistency, and coordination.” The federation noted that mutual recognition legislation differed across provinces and territories, with many jurisdictions introducing more limited laws excluding sectors like labour, food, alcohol, or services. Some mutual recognition legislation also restricted practical impact by leaning on subjective reciprocation requirements.
Moreover, CFIB said memoranda of understanding rarely led to binding commitments or provided clear guidance for small businesses; thus, entrepreneurs are uncertain of meaningful changes if MOU timelines, outcomes, or alignment with legislation are not transparent. The federation also warned governments that they risked sustaining fragmented systems that affected businesses in lieu of coordinated implementation, expanded scope, and greater transparency.
“Governments must recognize that true progress is not measured by how many agreements are signed, but whether Canadian businesses and residents actually experience fewer barriers and lower costs when trading across provincial and territorial lines. At a time when Canada is facing an entrepreneurial drought, removing internal trade barriers is essential to encourage more small businesses to start up, scale, and expand across provincial borders,” said SeoRhin Yoo, CFIB’s senior policy analyst, in a statement. “The next six to 12 months will be critical for determining whether the momentum achieved in 2025 translates into durable, nationwide alignment.”