Why is it so difficult to trade between Canadian provinces?

Trade restrictions between Canadian provinces, from health and safety laws to specific product standards, pose serious barriers to business. According to Mark Menger, a professor of political economy at the University of Toronto, the lack of a single federal body to enforce the rules has meant that each province has its own regulations.

One example of these challenges is the difference in professional licensing. For example, nurses and teachers must be registered in the province where they work, which can complicate the movement of workers. On the other hand, removing these barriers requires cooperation between provincial governments, which may not be easy.

According to a report by the Canadian Internal Trade Committee, removing these barriers could add up to $200 billion to the country’s economy. However, some provinces use these restrictions as a tool to support local businesses, which has made the necessary changes difficult to implement.

Although domestic trade liberalization can have significant economic benefits, it still requires difficult negotiations and complex agreements between provinces.

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