Ontario Unlocking Free Trade Within Canada

TORONTO — As a next step in its plan to protect Ontario by unleashing the province’s economy, the Ontario government is introducing the Protect Ontario through Free Trade within Canada Act to unlock free trade and labour mobility within Canada. This legislation will, if passed, create new opportunities for job creation and investment attraction, supporting economic integration across Canada and cutting costly and unnecessary red tape to help protect and grow Ontario and Canada’s economies.

“For too long, we’ve let red tape and endless regulations hold back our economy, making us vulnerable to external threats, including from President Trump’s tariffs,” said Premier Doug Ford. “Not anymore. The legislation we’re introducing today will make Ontario a national leader when it comes to trade between provinces and territories, so we can strengthen and unify Canada and create new markets and opportunities for Ontario workers and goods.”

Trade barriers within Canada cost the economy up to $200 billion each year and lower gross domestic product by nearly eight per cent. These barriers also increase the cost of goods and services Ontario families rely on by up to 14.5 per cent, at a time when families are already struggling from increased costs due to tariffs. Ontario is leading the charge to tear down these barriers to unlock Canada’s full economic potential.

Ontario’s plan, including the measures in the Protect Ontario through Free Trade within Canada Act, will support free trade and mobility across Canada by:

Becoming the first province in Canada to remove all its party-specific exceptions (PSEs) under the Canadian Free Trade Agreement (CFTA) without exception and encouraging other provinces and territories and the federal government to follow suit.
Allowing workers from other parts of the country to come and work in Ontario by enabling the government to remove labour mobility barriers, reduce administrative burdens and simplify the movement of certified workers across Canada. By expanding labour mobility with new “As of Right” rules, Ontario will allow certified workers from other provinces and territories to begin working in Ontario immediately while they complete a streamlined registration process.
Enabling mutual recognition with reciprocating provinces and territories, so that goods, services and registered workers that are good enough for other parts of Canada are recognized as good enough for sale, use or work in Ontario.
Moving to allow more regulated health professionals in good standing to begin practising in Ontario while they wait for registration in an Ontario health regulatory college and removing restrictions on where they may work using “As of Right” rules. The government will also begin consultations to allow American health professionals, including doctors and nurses, to be included under these new “As of Right” rules.
Enabling direct-to-consumer alcohol sales with reciprocating provinces and territories so that consumers will be able to purchase alcohol directly from producers across Canada for personal consumption.
Establishing a “Buy Ontario, Buy Canadian” day held annually on the last Friday in June to help consumers support local businesses and workers through programs such as Ontario Made, Ontario Wood, VQA and Foodland Ontario.

Ontario is also launching the new $50 million Ontario Together Trade Fund to help businesses make near-term investments so they can serve more interprovincial customers, develop new markets and re-shore critical supply chains, strengthening Ontario’s trade security and diversification.

As part of this effort, Ontario is signing memorandums of understanding (MOUs) with Nova Scotia and New Brunswick that will bolster interprovincial trade. These MOUs will support the reciprocal removal of barriers to trade between Ontario and Nova Scotia and Ontario and New Brunswick by advancing mutual recognition, such that a good, service or registered worker that is acceptable for sale, use or work in one province is acceptable in the other. Ontario will also work with Nova Scotia and with New Brunswick on a framework for direct-to-consumer alcohol (DTC) sales, so that producers have easier access to new market opportunities, and so that consumers have greater choice and access to a broader selection of alcoholic beverages. This collaboration will enhance economic resilience, create job opportunities and set a precedent for other provinces to follow.

“This is a significant moment for our country and Nova Scotia is proud to be leading the way with Ontario,” said Premier Tim Houston. “Last month, Nova Scotia passed the Free Trade and Mobility within Canada Act, a first in our country. It’s short and succinct. This action says a lot about our commitment to make our economies stronger, and about fairness to workers, opportunities for businesses, and respect for Canadians’ right to move, work and trade freely across their own country.”

“Ontario is New Brunswick’s second biggest trading partner, and we are excited to be building on the positive momentum to reduce internal trade barriers across Canada,” said Premier Susan Holt. “Today’s signing of this MOU commits both our provinces to enhance direct-to-consumer alcohol sales and improve interprovincial labour mobility. It will also encourage the free flow of goods, services, and investment, all while maintaining and strengthening the safety of our communities. We encourage other Canadian jurisdictions that have not already done so to join us in driving progress on internal trade by tabling their own legislation to reciprocally remove barriers to trade across Canada, including through mutual recognition.”

“Ontario is leading the way when it comes to free trade within Canada, and we’re pleased to work with our partners across the country to get it done,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “The legislation being announced today and the historic funding we are providing through the Ontario Together Trade Fund will create new opportunities to grow our economy, secure our supply chains and unify our country.”

Ontario is Canada’s largest interprovincial trader. With access to more than 41 million customers and purchasing power per capita among the highest in the world, the opportunity for Ontario businesses and workers through increased internal trade needs to be leveraged in an increasingly unstable global market. The government of Ontario is committed to supporting business and workers through these challenging economic times and will pursue additional measures and supports to ensure stability and resiliency.

Quick Facts

In 2023, two-way trade in goods and services between Ontario and its provincial and territorial counterparts resulted in $326.6 billion in economic activity.
Thirty-five per cent of Canada’s trade takes place within its own borders.
In a recent survey, nine in 10 Canadians say they want stores to promote Canadian products.
Party-specific exceptions allow CFTA Parties (i.e. all provinces, territories, and the federal government) to maintain or adopt measures (i.e. legislation, regulations, and policies) that may be inconsistent with certain rules of the Agreement. PSEs insulate those measures from a successful trade challenge under the Agreement’s dispute resolution mechanism.
Certified workers coming through the “As of Right” rule under the Ontario Labour Mobility Act, 2009, would be required to submit their certificate of registration from their “home” province or territory to the Ontario regulator. Upon confirmation, the worker would be able to work immediately in Ontario for up to six months while completing their labour mobility application for registration with the Ontario regulator.
Approximately 3,000 labour mobility applications in total were processed in 2023 across 14 regulated professions and 23 compulsory trades governed under the Fair Access to Regulated Professions and Compulsory Trades Act, 2006.
Approximately 20 per cent of occupations are regulated in Canada.
Ontario is actively working to advance the use of mutual recognition on various fronts, including as part of the Mutual Recognition Pilot Project in the trucking sector, as well as through the CFTA’s Regulatory Recognition and Cooperation Table negotiations to mutually recognize regulatory measures governing the sale and use of consumer goods, except food.

Quotes

“Ontario is unlocking Canada’s economic potential by building our workforce and expanding labour mobility. This will reduce red tape, help more professionals get to work faster, support Ontario employers with addressing their labour needs and boost our economy.”

– David Piccini
Minister of Labour, Immigration, Training and Skills Development

“Our government is taking bold, decisive action to protect Ontario and support the needs and livelihood of all Ontarians during this uncertain time. By building on our success and further expanding our innovative “As of Right” rules, our government is recruiting even more health care professionals from other jurisdictions, bolstering our nation-leading health care workforce and making world-class health care more accessible for people and their families across the province, for years to come.”

– Sylvia Jones
Deputy Premier and Minister of Health

“Unlocking Ontario’s economic potential isn’t just about growing our economy today: it’s about building long-term economic prosperity that future generations can count on. By lifting interprovincial trade barriers, we’re creating opportunities for people in Ontario and across Canada to thrive in their communities while benefiting our nation as a whole.”

– Peter Bethlenfalvy
Minister of Finance

“In this time of tariff threats and uncertainty, empowering consumers to support locally made goods and homegrown talent is more important than ever. That is why our government is proud to establish Buy Ontario, Buy Canadian Day: a call to arms and a new annual tradition that celebrates our incredible Ontario and Canadian businesses, producers and workers.”

– Stephen Crawford
Minister of Public and Business Service Delivery and Procurement

“This landmark legislation demonstrates strong nation-building leadership. The Ontario government’s bold action on internal trade barriers unlocks new heights for provincial and national prosperity.”

– Ryan Manucha
Research Fellow, C.D. Howe Institute

“Strengthening relationships at home first, while ensuring we maintain safety as a core value, is key to Ontario’s and Canada’s economic success. We commend Premier Ford for his commitment to addressing inter-provincial barriers to trade and labour. The legislation introduced today will reduce uncertainty faced by Ontario’s mining sector, particularly amid the ongoing tariff disputes with the U.S. By broadening access to qualified professionals, we can alleviate the rising costs associated with third-party certification of closure plans and ensure that our industry remains competitive. This proactive approach not only strengthens our relationships with other provinces, but also reinforces our dedication to fostering a robust mining environment across Canada.”

– Priya Tandon
President, Ontario Mining Association

“This legislation is a historic step toward making the movement of goods and people freer across Canada. It is also a call to action for other governments across the country. As we face the threat of American tariffs across a range of sectors, enabling governments and individuals to help manufacturers by buying more goods made right here in Canada is timely and important. We encourage all provinces to follow Ontario’s lead to build our country’s strength, to completely remove all internal barriers, and support industry-led initiatives that support local jobs, such as CME’s Ontario Made program.”

– Dennis Darby
President and CEO, Canadian Manufacturers & Exporters

“We applaud the Ontario government for introducing bold legislation that responds to several CFIB asks and helps to build Canadian economic independence. The government has turned the U.S.-Canada trade war into positive action for Ontario and other provinces to unite in removing barriers to growth and opportunity within their own boundaries. We urge all provinces to rise up to the challenge.”

– Julie Kwiecinski
Director of Provincial Affairs (Ontario), Canadian Federation of Independent Business

“This legislation helps break down barriers to labour mobility which means more opportunities, fairer access to jobs, and stronger economic growth across Canada. The Carpenters’ Regional Council is proud to stand behind it.”

– Jason Rowe
Executive Secretary-Treasurer, Carpenters’ Regional Council

“The Provincial Building and Construction Trades Council of Ontario supports greater trade within Canada as being foundational to our nation’s security and prosperity. As this Bill makes its way through the legislative process, we look forward to sharing our Council’s expertise on interprovincial mobility in the construction industry. The Building Trades are committed towards training to the highest standard so that the health and safety of all construction workers is protected.”

– Marc Arsenault
Business Manager and Secretary-Treasurer, Provincial Building and Construction Trades Council of Ontario

“On behalf of the United Association of Workers of HVAC&R Local 787, we commend Premier Ford’s leadership as his government seeks to cut barriers to work across Canada. Now more than ever, our country needs to unite our economies into one strong Canadian powerhouse that supports workers from sea to sea. We know Premier Ford, Minister Vic Fedeli and Minister David Piccini all have our backs during this trying time against American protectionism. Together, we will all successfully protect Ontario.”

– Andrew Tarr
Business Manager, United Association of Workers of HVAC&R Local 787

“The Health Profession Regulators of Ontario, which represents 26 regulatory bodies, is committed to patient safety, seamless registration processes, and enabling access to qualified health care professionals. The new Bill demonstrates the government’s efforts to reduce barriers for professionals to come to Ontario, and it complements HPRO’s efforts to speed up registration processes while still making sure health care professionals practice safely in the province.”

– Daniel Faulkner
HPRO Board Chair

“NPAO welcomes the Ontario government’s introduction of “As of Right” rules to attract and expedite the integration of Nurse Practitioners into Ontario’s healthcare system. NPs are well-positioned to play a key role in addressing gaps in primary and specialty care across the system, and we look forward to continuing our partnership with the government to integrate and empower NPs to provide high-quality, compassionate, and accessible care for all Ontarians.”

– Dr. NP Michelle Acorn
CEO of the Nurse Practitioners’ Association of Ontario (NPAO)

“Qualified doctors who wish to work in Ontario should face minimal barriers or delays to beginning practice. The Ontario Medical Association supports the government’s move to continue to make it easier for these physicians to join our system in need. Ontario’s doctors look forward to working with their new colleagues. We look forward to working with the government and partners on continuing to reduce unnecessary barriers to practice in Ontario.”

– Dr. Dominik Nowak
President, Ontario Medical Association

“The “buy Canadian/buy local” sentiment has grown exponentially during the past few months and there has never been a better time for provinces to work together to get more VQA wines into the hands of consumers. The threat of U.S. tariffs has shown the urgency for us to break down interprovincial trade barriers and that we can’t accept the status quo any longer. Our message is simple. Anything that can be done to reduce barriers for VQA wines is long overdue. As a first step, we support consumers’ ability to order Canadian VQA wine directly to their homes – wherever the winery is and wherever they live in Canada.”

– Michelle Wasylyshen
President & CEO – Ontario Craft Wineries