Bill 112: The MEI applauds a major step in the removal of interprovincial trade barriers

• The complete elimination of trade barriers between Quebec and the rest of the country would raise Canada’s GDP by $69.9 billion.

Montreal, May 30, 2025 – The tabling of Bill 112 this morning by Minister for the Economy Christopher Skeete marks a major step forward in the removal of interprovincial trade barriers, says an MEI researcher.

“By recognizing the standards and certifications of all provinces and territories, Quebec’s Bill 112 represents a major breakthrough for interprovincial trade,” says Gabriel Giguère, senior policy analyst at the MEI. “One thing we notice, however, is the absence of the term ‘services’ in the bill. We hope it will be included in the final version.”

Differences in regulation, certification, and testing requirements between the provinces add costs, complexity, and frustration to the process of selling goods and services from one province to another. These rules are commonly referred to as “interprovincial trade barriers.”

Bill 112, entitled An Act to facilitate the trade of goods and the mobility of labour from the other provinces and the territories of Canada, reduces these barriers by adopting an approach of unilateral recognition of product manufacturing standards and professional certifications from the rest of the country.

The bill does, however, allow the government to apply certain exceptions according to province of origin, product category, and type of worker.

“While such lists of exemptions are not uncommon, it’s important to remember that the longer the list, the more limited will be the benefits,” adds Mr. Giguère.

An MEI Economic Note published yesterday estimates that the complete elimination of trade barriers between Quebec and all other Canadian provinces could grow Canada’s GDP by $69.9 billion.

So far, Nova Scotia, Ontario, and Prince Edward Island have introduced or adopted bills aiming to eliminate all trade barriers and ensure mutual recognition with other provinces that do the same. Manitoba has also introduced a similar bill, albeit of more limited scope.

The elimination of trade barriers between Quebec and Ontario alone could grow Canada’s GDP by $32.2 billion.

“By adopting this approach, Quebec could join the pan-Canadian free-trade zone established by Ontario and Nova Scotia, to the benefit of our businesses,” concludes Mr. Giguère.

The MEI Economic Note is available here.

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The MEI is an independent public policy think tank with offices in Montreal, Calgary, and Ottawa. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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