Freeing federal barriers to trade across provincial and territorial boundaries is being punted by Canadian Prime Minister Mark Carney as a way of offsetting the effects of any US tariffs.
Reuters quotes Carney as saying: “We are committing to table legislation by July 1 for goods to travel across the country … free of federal barriers. We can more than offset the effects of any US tariffs by eliminating internal trade barriers alone.”
His statement following meetings with provincial and territorial leaders.
Carney on his website cites research that found removing internal barriers would reduce trade costs by up to 15% and expand the economy by 4%-8%.
He said there were three main approaches to do this: harmonising regulations across provinces, provinces’ mutual recognition of rules and creating common national standards.
Business groups have long complained about trade barriers among the 10 provinces and three territories and a drawn-out permitting process that means it can take years to develop and build mines, oil pipelines and other major resource projects.
US President Donald Trump imposed 25% tariffs on Canadian imports of steel and aluminium in March, with further tariffs to follow on April 2.
Canada sends 75% of exports to the US and a third of all imports come from its southern neighbour, leaving its economy vulnerable to a protracted trade war.
Reuters reports that Carney, who recently became prime minister and is reportedly poised to announce on Sunday an election to take place in April, has yet to speak to Trump or lay out detailed plans on how he would deal with the president.
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