INTERPROVINCIAL TRADE
BREAKING DOWN BARRIERS THE IMPORTANCE OF INTERPROVINCIAL TRADE
I n a time of tariffs and economic uncertainty, Canadians are relying on each other more than ever for goods and services. Interprovincial trade sounds like a no-brainer these days, but, frankly, it’s complicated. Those looking to move products east to west — as opposed to south — may face seemingly impossible barriers, whether they’re infrastructural, geographical, political or due to free trade regulations. “It shouldn’t be easier to trade with other countries than within our own provinces — but for many businesses, that’s the reality,” says Randall Zalazar, director of government relations for the Canadian Chamber of Commerce. Zalazar says interprovincial trade is crucial right now since “there’s no better place to find certainty than at home.” It also sends the right signals to investors looking for stable, predictable environments with clear potential for growth. “On both counts, provinces like Manitoba will have BY LINDSEY WARD
a chance to lead,” he says. “Their economy will be better off for it.” A 2021 index from the Montreal Economic Institute suggested that if all trade barriers had been eliminated in Manitoba in 2020, the province’s gross domestic product per capita would be nearly $5,000 higher in 2030. That’s comparable to Ontario’s GDP per capita. “In Manitoba, the average individual would be about $5,000 richer if you dropped the trade barriers,” says Jeff Griffiths, director of the Skills, Innovation and Productivity Centre for the Calgary- based Canada West Foundation, a public policy think tank focused on Western Canadian issues. Griffiths says Manitoba is second only to Alberta in having the fewest number of exemptions in the Canadian Free Trade Agreement — a 327-page document with 200 pages of exemptions. While assets like Manitoba Hydro and agriculture are more challenging to open, there are areas that have seen recent movement.
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SUMMER 2025
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