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FAQ - Interprovincial trade reform and your business

Published: July 04, 2025
Updated: July 04, 2025
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As Canada moves toward a more integrated and efficient internal market, Mark Carney’s much talked-about federal reforms to interprovincial trade policy signal a turning point for businesses of all sizes.

Designed to dismantle longstanding trade barriers and harmonize provincial regulations, these changes promise to streamline operations, reduce costs, and unlock new opportunities across the country. But with transition comes complexity. We’re breaking down frequently asked questions—from legal risks and compliance strategies to identifying opportunities—helping your business navigate reform with clarity and confidence. Whether you're expanding into new provinces or reassessing your supply chain, now is the time to prepare.

Policy, regulatory, and legal landscape

A: The new bill, titled the One Canadian Economy Act and tabled as Bill C-5 in the House of Commons, is a two-part government bill by Minister LeBlanc. Part 1 is called the Free Trade and Mobility in Canada Act and creates a legal framework to streamline interprovincial trade and labour movement. Part 2 introduces a major new streamlining regime for designated national interest projects (NIPs).

A: The policies aim to reduce internal trade barriers, harmonize provincial regulations, and create a more unified Canadian market. 

A: Businesses can expect fewer regulatory hurdles, streamlined compliance processes, and improved market access across provinces. 

A: The most significant benefits for Canadian businesses centre around improvements to transportation and warehousing regulations, investment in digital logistics infrastructure, and regulatory harmonization across provinces. 

A: Companies should monitor evolving provincial laws and ensure they don’t inadvertently violate inconsistent local regulations during the transition. 

A: Business will have to address disparities in tax regimes and interprovincial tariffs that can create compliance complexity. Harmonization efforts aim to reduce these issues, but transitional challenges may persist. 

A: Businesses should engage through industry associations, provide input during consultation periods, and participate in regional economic development forums. 

Opportunities and challenges 

A: Transition costs, regional regulatory ambiguity, and uneven provincial adoption of federal standards may create short-term friction. 

A: The biggest opportunity for Canadian businesses can be broadly described as cost-savings. The red tape, delays, and differing requirements between provinces all add up to cost, and removing those things can mean big savings. Other opportunities center around national growth strategies, cross-provincial-border M&A activity, and expanded procurement and vendor relationships across the country.

A: With the removal of provincial trade barriers, Canadian businesses will likely have to navigate inconsistent licensing, workforce mobility restrictions, and lagging infrastructure updates in certain provinces. 

A: Speed at which Canadian businesses will see any positive impact from the removal of trade barriers will depend on the sector. Consumer goods and logistics will likely see immediate benefits, while regulated industries may face longer transitions. 

A: Manufacturing, agriculture, construction, and energy sectors may see the largest gains, especially in provinces with strong export potential. 

A: A unified, national energy market would potentially facilitate energy infrastructure projects, streamline permitting, and reduce costs in clean energy supply chains. 

Practical steps, guidance, and strategies for your business 

A: Businesses should conduct a regulatory audit, assess supply chain exposure, and update internal processes to reflect anticipated policy shifts. They should also focus on compliance readiness, tax planning, and reviewing supply chain agreements to align with the new national market structure. 

A: Business leaders should first and foremost stay informed through government updates. They should proactively seek legal and tax advisory support and integrate compliance checkpoints into business operations. 

A: Canadian businesses should focus their strategies on expansion, optimization, and re-evaluation—expand interprovincial distribution, optimize operations across jurisdictions, and reevaluate pricing or product offerings for new regions. 

A: Market intelligence is a critical tool to supporting a smoother transition to a national market structure. It can help identify gaps, forecast demand across regions, and evaluate the impact of regulatory changes on operations. 

A: Business advisors can help your business map out interprovincial operations and supply chains, train compliance staff, and initiate dialogue with local chambers of commerce. They can also help you access government incentives to support cross-provincial expansion, as programs vary by province but may include funding for market expansion, workforce training, and supply chain modernization. 

Webinar on-demand

Our experienced leaders talked through many of these questions in our recent webinar titled Unlocking growth: How new federal policies could reshape interprovincial trade.

View the on-demand recording for more details.

We’re here for a deeper dive into any of these questions. Contact a member of our team to start talking about strategies to prepare for a new trade environment across Canada.

Mike Abbott
Partner, Technology & Regulatory Advisory
613-739-4454

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Brian Morcombe
Partner, Indirect Tax Practice Leader
905-946-5406

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Charmaine Goddeeris
Director, Customs & International Trade
905-946-2527

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Jesus Ballesteros
Partner, Advisory
647-802-5844

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Michael Bains
Managing Director, M&A and Capital Markets
778-239-4520

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John Asher
Partner, Risk Advisory
604-313-0601

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Simon Hutton
National Sustainability Leader
604-235-5292

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