Ontario has signed agreements with Alberta, Prince Edward Island and Saskatchewan to remove barriers to interprovincial trade, part of a broader push to unlock what officials say is $200 billion in economic potential across Canada.
Premier Doug Ford joined Alberta Premier Danielle Smith, Saskatchewan Premier Scott Moe and Prince Edward Island Premier Rob Lantz to sign the memoranda of understanding. The deals expand Ontario’s interprovincial trade partnerships, adding to existing agreements with six other provinces.
“With President Trump threatening our economy, there’s never been a more important time to boost internal trade and cooperation between provinces,” Ford said.
The agreements aim to cut regulatory obstacles that complicate business operations across provincial boundaries. Ontario exported $183.9 billion in goods and services to other provinces in 2023 while importing $142.7 billion, creating two-way trade worth $326.6 billion.
Smith said the partnership will create competitive advantages.
“This agreement is about getting results, making it easier for people to work, do business and grow across provincial lines,” she said.
The deals support Ontario’s Protect Ontario Through Free Trade Within Canada Act, legislation designed to boost cross-Canada commerce and help businesses navigate challenges including potential U.S. tariffs.
Annual interprovincial trade between Ontario and the new partners reached $62.4 billion with Alberta, $15.0 billion with Saskatchewan, and $1.8 billion with Prince Edward Island in 2021, the most recent figures available.
Lantz said Prince Edward Island brings unique advantages despite its size.
“We’re punching well above our weight,” he said. “By eliminating unnecessary trade barriers and streamlining labour mobility, we’re fostering a more unified and competitive national economy.”
Ontario plans to launch a $50 million Ontario Together Trade Fund to help local businesses capitalize on expanded trade opportunities.
About 35% of Canada’s overall trade occurs within the country’s borders, government data shows.
Economic Development Minister Vic Fedeli said the agreements move Canada closer to “true free trade and labour mobility” within its borders.
“At a time of unprecedented global economic uncertainty, it has never been more important for provinces and territories to tear down internal trade barriers,” Fedeli said.
Implementation of the new trade provisions is expected to begin in the coming months.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
