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Canada Enacts Bill C-5 to Dismantle Federal Trade Barriers

Experts caution that despite federal reforms taking effect June 26, persistent provincial exemptions will continue to hinder internal trade.

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Prime Minister Mark Carney, centre, and the Premiers of Canada speak to media following the First Minister’s Meeting in Saskatoon, Sask., Monday, June 2, 2025. THE CANADIAN PRESS/Liam Richards
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Ontario Premier Doug Ford (L) and Manitoba Premier Wab Knew reached an internal trade agreement on May 14, 2025. Reduction of trade barriers could see alcohol sales by the end of June.(Fred Lum/The Globe and Mail)

Overview

  • Bill C-5 became law on June 26, aligning federal requirements with provincial standards and streamlining major infrastructure permitting under a “one project, one review” principle.
  • Ontario, Manitoba, British Columbia, Quebec, Yukon and other jurisdictions have signed memoranda or tabled legislation since April to cut interprovincial trade and labour mobility restrictions.
  • Key exceptions such as dairy supply management, Quebec’s language requirements and credit union licensing remain unchanged under the current federal framework.
  • Internal Trade Minister Chrystia Freeland has scheduled a July 8 meeting with provincial counterparts to tackle unresolved issues, with divergent trucking regulations topping the agenda.
  • Experts describe Bill C-5 as a starting point, noting that full barrier removal will require extensive provincial cooperation and detailed regulatory work.