CFIB urged ministers to lock in internal trade reforms before momentum fades
Small businesses across Canada pushed federal, provincial and territorial governments to prove that their recent flurry of internal trade announcements would translate into simpler rules – not a new maze of red tape – as ministers prepare to gather for the Committee on Internal Trade (CIT) meeting.
The Canadian Federation of Independent Business (CFIB) said internal barriers still weigh on small firms trying to ship goods, provide services or hire across provincial borders.
This remains the case even after landmark moves such as the Canadian Mutual Recognition Agreement (CMRA) on the Sale of Goods and new mutual recognition laws in several provinces.
Recent modelling from the International Monetary Fund and Canada Mortgage and Housing Corporation showed that removing those frictions could boost growth and unlock badly needed housing supply.
Estimates pointed to as much as a 7% lift in real GDP and roughly 30,000 additional housing starts a year if non‑geographic barriers are dismantled.
“Canada has seen more movement on internal trade over the past year than we have in nearly a decade,” said Keyli Loeppky, CFIB’s director of interprovincial affairs.
“The signing of the Canadian Mutual Recognition Agreement (CMRA) on the Sale of Goods and the introduction of mutual recognition legislation show governments are serious about tackling barriers. But momentum alone isn't enough – businesses need clear rules, consistent implementation, and fewer exceptions.”
Small firms still face duplicative testing, inconsistent provincial regulations and restrictions on moving goods and services across borders, CFIB’s latest State of Internal Trade report found.
That picture aligns with IMF research that likened policy‑driven internal barriers to a significant tariff and warned that fragmented markets are dragging on productivity and housing affordability.
“Small businesses are encouraged by recent announcements, but they're also worried governments could replace old barriers with new, more complicated ones,” Loeppky said.
“Reciprocal requirements, broad exceptions, and slow pilot projects risk recreating the same patchwork of rules that has held back Canada's internal trade market for years.”
Alcohol and food rules remain among the most visible sticking points. Provinces endorsed a timeline for direct‑to‑consumer alcohol shipments by May 2026, but progress has been uneven.
New Brunswick and Manitoba are among the few jurisdictions that appear ready to move ahead, while others offer little detail.
CFIB also highlighted unresolved barriers around provincially inspected food, services and labour mobility – all areas that matter for builders, brokers and lenders trying to scale nationally.
“Small businesses are ready to grow, hire, and expand across Canada,” Loeppky said.
“Governments have an opportunity right now to turn momentum into meaningful change. Acting decisively will help unlock economic potential and make Canada's economy stronger and more competitive.”
For mortgage professionals, the stakes run beyond regulatory housekeeping.
A more integrated internal market promises faster project timelines, lower input costs and stronger regional economies – conditions that would support a healthier pipeline of housing supply and a more resilient credit environment over the long term.
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