B.C. Minister of Jobs and Economic Growth Ravi Kahlon says the new bill will establish transparency for any exemptions the province seeks to protect goods, services or labour.DARRYL DYCK/The Canadian Press
British Columbia introduced legislation Wednesday to tackle – once again – interprovincial trade barriers, underscoring the slow progress on a file that is supposed to help energize the national economy.
It’s been almost a year since B.C. first enacted the Economic Stabilization Act, which was meant to pave the way for the dismantling of trade barriers with other provinces.
The law was drafted in response to the U.S. trade war, but the powers in what was deemed emergency legislation were set to expire in May, with many entrenched obstacles still in place, particularly on the trade of food and alcohol, and on labour mobility.
That’s despite multiple commitments over the past year by the federal government and all provinces and territories to tear down internal barriers to trade.
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In November, most of these governments signed the Canadian Mutual Recognition Agreement on the sale of goods, reducing the barriers to the sale of goods across Canada by ensuring that a product that may be lawfully sold in one province or territory may be sold across Canada without having to meet further requirements.
However, many goods were exempt, including food and beverages. Meanwhile, there are still limits to the movement of labour, as well as financial and other services within Canada.
In January, the International Monetary Fund released new research that found Canada’s internal trade barriers are the equivalent of a 9-per-cent tariff on goods and services.
Ravi Kahlon, B.C. Minister of Jobs and Economic Growth, called his new bill “a foundational piece of legislation” that will help businesses, but also reduce costs for consumers.
“I’ve heard from stakeholders who say ‘It’s easier for me to sell my products to Mexico, to parts of Asia, than it is to neighbouring provinces.’ This removing of trade barriers reduces their cost and allows them to get into markets much quicker. And I think that’s what’s required in this time that we’re living in.”
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That’s a familiar sentiment from Canadian politicians who have voiced support for taking down internal trade barriers. Prime Minister Mark Carney promised last spring to establish internal free trade by Canada Day of 2025, in response to U.S. tariffs.
But the myriad regulations, particularly around labour mobility, have resisted change.
British Columbia’s Bill 5, the Trade Recognition Act, would make permanent the changes first rolled out by the province last year, which are meant to ensure that goods and services lawfully sold, used or supplied in any other Canadian province can also be sold, used or supplied in B.C. – unless an exception applies.
Those potential exemptions are broad: The cabinet would retain powers to protect environmental, consumer, health, safety and other standards, the bill says.
Mr. Kahlon said the new bill will establish transparency for any exemptions the province seeks to protect goods, services or labour.
“We’ll be able to post any exceptions that we have in place publicly, so that not only the business community, but everybody in the public will be able to see what those exceptions are and why we put them in place,” Mr. Kahlon told reporters Wednesday.
David Williams, vice-president of policy for the Business Council of British Columbia, welcomed the legislation but said it has to be followed through with regulation. And, he said, B.C. should make as few exceptions as possible.
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He noted that the Canadian Mutual Recognition Agreement leaves out food and services, “which is the lion’s share of the economy.” He said the U.S. trade relations demand movement. “It’s a free lunch if you can improve trade within the country.”
Over the past year, B.C. has signed economic co-operation agreements with Ontario, Manitoba and Yukon on labour mobility and alcoholic beverage sales, as well as on and the potential of connecting electrical grids with Yukon.
B.C. and Alberta agreed to direct-to-consumer wine sales, which has allowed about a quarter of a million bottles of B.C. wine to be purchased in Alberta since January, 2025.
Mr. Kahlon said he expects more progress.
“We’ve got trade ministers that are meeting regularly. Our staff are meeting regularly. I’m confident that we will make progress on all the other items, whether it’s labour mobility, whether that’s food, whether that’s alcohol. These things are crucially important.”