The many barriers to interprovincial trade could lessen with the new Canadian Free Trade Agreement

Despite the Agreement on Internal Trade (AIT) that went into effect in all provinces and territories in 1995, numerous non-tariff barriers continue to hamper the interprovincial trade in goods and services. Meanwhile, Canada’s international trade agreements have proliferated in recent years, going a long way to foster exports outside the country. Many businesses say it may now be easier to sell their products and services abroad than in another province. As a result, Canada’s interprovincial trade has lost ground to international trade. Clearly, there is a need for greater harmonization of regulations and freer trade between the provinces. In July, the provinces and territories reached an agreement in principle on a new Canadian Free Trade Agreement (CFTA), offering strong hope in that area.