Kingston, Canada – March 5, 2025 – The John Deutsch Institute (JDI) has released a new policy paper, Breaking Down Canada’s Internal Trade Barriers, co-authored by Professor Christopher Cotton and Dr. Daniel Teeter from Queen’s University. The report examines how divergent provincial regulations, licensing rules, and transportation restrictions are inflating costs, stifling competition, and impeding business growth across Canada.

Drawing on past research and policy debate, the paper demonstrates that Canada’s internal trade barriers act like a 7 percent tariff on goods moving between provinces, a factor that contributes to Canadians paying up to 14.5 percent more for everyday products. The report presents 22 actionable reforms and investments, ranging from standardizing building codes and business registration processes to modernizing rail infrastructure and enhancing digital connectivity.

“Reducing internal trade barriers could boost Canada’s GDP by as much as $161 billion per year,” said Professor Cotton, Director of the JDI for the Study of Economic Policy. “By making these reforms a priority, Canada can create a more unified national market, lower costs for consumers, and encourage innovation and competition to drive long-term economic growth.”

Key recommendations include:

• Pan-Canadian Credential Recognition: Establish a national framework to recognize professional licenses across provinces, easing labor mobility.
• Harmonization of Business Regulations: Develop a single-window system to simplify business registration and reduce bureaucratic delays.
• Infrastructure Investments: Modernize transportation and digital networks to support a seamless flow of goods and services.
• Financial Incentives: Link federal funding to barrier reduction and provide targeted grants to encourage regulatory harmonization.
• Transparency and Accountability: Implement public scorecards and data hubs to monitor progress and drive accountability.

The paper argues that while interprovincial trade reform is essential in itself, it also forms a crucial component of a broader strategy to transform Canada’s economy—making it more resilient, competitive, and less dependent on the United States.

To read the full policy paper, visit https://jdi.queensu.ca/wp-content/uploads/2025/03/Cotton-Teeter-Interprovincial-Barriers-JDI-Policy-Paper.pdf

For further information, please contact: Daniel Teeter or Christopher Cotton.