Quebec's free trade hesitation cost Canada $70B: report

The Montreal Economic Institute says Quebec's numerous regulations are costing Canada $70 billion, despite promising free trade legislation, with Quebec politicians hesitant to embrace change.

 

Québec continues to lag behind the pack as its anglophone neighbours move to eliminate interprovincial trade barriers and boost Canada's economy.

A new Montreal Economic Institute (MEI) study says the removal of barriers in Québec could boost the Canadian economy by roughly $69.9 billion, including $32.2 billion from Ontario alone.

"It's one of the surest and lowest-cost ways for provincial governments to unleash Canadian productivity growth," said Trevor Tombe, a professor of economics at the University of Calgary and senior fellow at the MEI.

Ontario, New Brunswick, and Prince Edward Island recently joined the free trade cause, implementing reciprocal measures with Nova Scotia to boost trade.

The New West Partnership Trade Agreement already exists to simplify regulations between all Western provinces.

Tombe suggests Québec Premier François Legault should emulate Nova Scotia by implementing mutual recognition laws nationwide.

Nova Scotia passed Bill 36, the Free Trade and Mobility Within Canada Act, to simplify trade with provinces that have similar legislation. It will recognize products, services, and professionals approved in other Canadian provinces without additional testing or fees, even if they don't meet Quebec's standards.

According to MEI, measures promoting internal free trade zones could significantly boost Canada's economy. For instance, Ontario and Nova Scotia alone could contribute $4.1 billion.

Ontario recently signed a memorandum of understanding (MOU) with Alberta and Saskatchewan to eliminate trade barriers.

Québec is under scrutiny for its many regulations, telling the National Post about a forthcoming bill to address these issues. However, Québec's MNAs are not keen on a proposed single Canadian economy.

The province's National Assembly unanimously adopted a motion in April opposing a project that would impede the province's ability to protect its economic, cultural, and linguistic interests, while still aiming to lower interprovincial trade barriers.

Talks on the benefits of reducing barriers are ongoing.

Tombe views the increasing push to remove internal trade barriers in Canada as a positive development, but argues that Quebec would achieve greater prosperity by participating in the interprovincial free trade zone.

For example, the newly minted Saskatchewan-Ontario agreement mutually recognizes goods, workers, and investment, while Alberta's aims to improve the flow of goods and services.

Premier Doug Ford stated that these interprovincial free trade deals will boost their economies amid ongoing trade disputes with the United States. He claims these trade measures could unlock $200 billion in economic growth.

The province earlier signed trade MOUs with Manitoba, Nova Scotia, and New Brunswick.

"It's time to stop letting outdated rules hold us back and show Canadians what real economic leadership looks like," Alberta Premier Danielle Smith said in a news release Sunday.

The Premiers met with Prime Minister Mark Carney on Monday to discuss economy-boosting nation-building projects, advocating for the removal of the Impact Assessment Act and other burdensome regulations.

Carney aims to eliminate interprovincial trade barriers by Canada Day.

Alex Dhaliwal

Journalist and Writer

Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.

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COMMENTS

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  • Fran g
    commented 2025-06-07 14:11:37 -0400
    Sadly Quebecs stupidity could result in the fall of Canada as we know it.
  • Bernhard Jatzeck
    commented 2025-06-02 21:44:28 -0400
    Maintaining the status quo has been good for Quebec. Why shut off the stream that fills the golden hog trough?
  • Bruce Atchison
    commented 2025-06-02 19:55:10 -0400
    Too many block-headed Bloc heads in Quebec. They like our transfer payment money but they won’t let us create wealth. They need a check up from the neck up.