Ontario Moves to Dismantle Domestic Trade Barriers, Introduces Landmark Free Trade Within Canada Act

April 16, 2025 Samantha Deschamps 0 Comments 4 min read

Province aims to strengthen economic ties with other provinces and shield against U.S. tariffs

TORONTO — Ontario has introduced new legislation designed to tear down longstanding barriers to trade and labour mobility within Canada, setting the stage for what Premier Doug Ford calls “a national movement to unite our country’s economy.”

The Protect Ontario through Free Trade within Canada Act, unveiled last week, would position Ontario as the first province to fully remove its party-specific exceptions under the Canadian Free Trade Agreement (CFTA). The move aims to support job creation, attract investment, and unlock economic opportunities estimated to be worth up to $200 billion annually.

“For too long, we’ve let red tape and endless regulations hold back our economy,” said Premier Ford. “Not anymore.”

The legislation arrives amid rising trade tensions with the United States, prompting Ontario to double down on internal trade as a way to buffer against external shocks like tariffs imposed by President Donald Trump.

Canada can’t afford to allow costly trade barriers between provinces divide our country and hurt our economy.

Today, we introduced historic new legislation to make it easier for other Canadians to buy, sell and work in Ontario, and signed agreements to support free trade with… pic.twitter.com/VZ36fuR6Hb

— Doug Ford (@fordnation) April 16, 2025

What’s in the Legislation?

If passed, the legislation will:

Remove all CFTA Party-Specific Exceptions (PSEs) currently maintained by Ontario.
Enable “As of Right” rules for certified workers from other provinces and territories to immediately begin working in Ontario while completing streamlined registration processes.
Establish mutual recognition agreements, ensuring that goods, services, and credentials recognized in one province are accepted in Ontario.
Expand health worker mobility, including efforts to allow U.S. doctors and nurses to practice in Ontario under new rules.
Launch direct-to-consumer alcohol sales from producers across Canada with reciprocating provinces.
Create an annual “Buy Ontario, Buy Canadian” Day on the last Friday in June.
Establish a new $50 million Ontario Together Trade Fund to help businesses serve more interprovincial customers and re-shore supply chains.

East Coast Partnerships

Ontario also signed new memorandums of understanding (MOUs) with Nova Scotia and New Brunswick. These agreements are focused on mutual recognition of goods and workers, and will jointly explore frameworks for interprovincial alcohol sales.

Premier Tim Houston of Nova Scotia, which passed its own free trade legislation last month, hailed the partnership. “This action says a lot about our commitment to make our economies stronger, and about fairness to workers,” he said.

New Brunswick Premier Susan Holt added, “Today’s signing… commits both our provinces to enhance direct-to-consumer alcohol sales and improve interprovincial labour mobility.”

Industry Reaction

The sweeping initiative was met with praise from a wide range of industries:

Ontario Mining Association President Priya Tandon said the move reduces red tape for qualified professionals and protects the industry during tariff disputes.
Canadian Manufacturers & Exporters CEO Dennis Darby called it “a historic step toward making the movement of goods and people freer across Canada.”
Nurse Practitioners’ Association of Ontario CEO Dr. Michelle Acorn said the “As of Right” changes would help integrate health professionals more efficiently into the system.
Ontario Craft Wineries applauded efforts to enable Canadians to order VQA wine directly from any province.

Even labour unions are backing the move. Jason Rowe, Executive Secretary-Treasurer of the Carpenters’ Regional Council, said the legislation “means more opportunities, fairer access to jobs, and stronger economic growth across Canada.”

Looking Ahead

Ontario, which accounts for over one-third of Canada’s internal trade and recorded $326.6 billion in interprovincial economic activity in 2023, says it will continue to push for pan-Canadian alignment. The province is encouraging others to follow suit by introducing their own internal trade legislation.

As Finance Minister Peter Bethlenfalvy noted: