As Canada Day approaches, Canadians are anxiously waiting to see what we might be able to celebrate. On the trade front, July 1 marks a deadline of sorts for the renewal of the Canada-U.S.-Mexico trade agreement, CUSMA. Negotiators hint at a longer haul, and uncertainty looms over what is on or off the table.
A Critical Moment for Canadian Trade
Prime Minister Carney has been pressing a big reset button in Canada's commercial relations with the world. The most prominent relationship in need of attention is with the U.S., characterized as being in a state of rupture. If trilateral trade limbo continues, what else can Canada celebrate?
The Solution Lies Within
How about a vital trading relationship entirely within our control: the actual and final elimination of internal trade barriers. Now emboldened with a majority government, the prime minister has an opportunity to reset commercial relationships within Canada. Can the same ambition for global trade partnerships boost our internal economy and help buttress Canada after a rupture in major trading relationships?
The Stakes of Internal Trade
The estimated value of internal trade in goods and services in Canada is over $530 billion a year, representing almost 20 per cent of GDP. The campaign to eliminate barriers has plodded along for decades, managed by an intergovernmental committee under the Canada Free Trade Agreement (CFTA), signed in 2017 and updated in 2019 and 2024.
While the first third of the CFTA rings with declarations of benefits, the remaining two-thirds detail a wide range of exceptions claimed by federal, provincial, and territorial governments. Some progress has been made on recognizing professional credentials and product standards, but off ramps from the agreement are better paved than the free trade road ahead.
Global Attention on Canada's Internal Barriers
The world has taken notice. The European Union claimed freer trade among its member states than Canada enjoys within its internal market as early as the 1980s. More recently, an International Monetary Fund (IMF) report titled "Canada can grow faster by unlocking its own market" concludes: 'Turning 13 economies into one is no longer just an aspiration — it is an economic imperative.'
Now is the opportunity for Canada to grow faster by unlocking its internal trade market. With a majority government and global economic pressures, the time for action is now.
