Ontario Unveils Legislation to Eliminate Provincial Trade Barriers

Ontario Unveils Legislation to Eliminate Provincial Trade Barriers.


The Ontario government is set to introduce legislation aimed at dismantling trade barriers that hinder inter-provincial commerce. The government argues that such reforms are essential for spurring economic growth in Canada, particularly as the nation confronts tariffs imposed by U.S. President Donald Trump.

In materials shared with the press, the government references a study by the Macdonald-Laurier Institute, which suggests that eliminating various regulatory obstacles between provinces could potentially add up to $200 billion annually to the national economy. However, some economists caution that the actual impact might be difficult to quantify, and that removing sometimes obscure regulations may not lead to an immediate economic boost. The proposed bill, named the Protect Ontario through Free Trade within Canada Act, would allow Ontario to recognize the regulations and standards of other provinces concerning goods, services, and registered professionals—such as those in trades and healthcare—provided those provinces reciprocate by acknowledging Ontario's regulations. Premier Doug Ford announced the initiative at a press conference in Toronto on Wednesday. Nova Scotia has also initiated similar measures, with Premier Tim Houston joining Ford in Toronto to sign a trade memorandum with Ontario, alongside New Brunswick Premier Susan Holt. One tangible outcome of Ontario's proposed changes is the ability for consumers to order alcoholic beverages directly from producers in other provinces that remove similar restrictions; for instance, Ontarians could potentially order Okanagan wine online, while British Columbians could access Niagara wines. Other proposed changes, along with their broader economic implications, may be less straightforward to understand. For example, Ontario officials highlighted the plan to standardize regulations for reflective safety vests worn by construction workers, allowing Ontario-certified vests to be used at job sites in participating provinces. Additionally, the legislation could facilitate mutual recognition of truck signage and lighting requirements for oversized loads, which currently necessitate some trucks to stop at provincial borders to change their signs and lights. The bill would also eliminate all 23 exceptions Ontario currently holds under the Canadian Free Trade Agreement. These exceptions involve various technical stipulations, including residency requirements for professionals in real estate and travel, car dealerships, collection agencies, livestock medicine sellers, and driving school instructors. Furthermore, these exceptions enable Ontario to prioritize its own energy and natural gas companies, maintain its liquor monopoly, and favor local producers of wild rice and grapes for wine.
The government also plans to legislate a "Buy Ontario, Buy Canadian" day on the last Friday in June and is considering both voluntary and regulatory measures to help retailers make it easier for consumers to identify Canadian products.