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Interprovincial trade: Quebec has lost ground since 2017

  • Quebec has 36 exemptions to the Canadian Free Trade Agreement.

Montreal, January 27, 2025 – Since the Canadian Free Trade Agreement came into effect in 2017, the Quebec government has still not made the least bit of effort to reduce its barriers to interprovincial trade, decries the MEI.

“Not only has the Quebec government not reduced its barriers to interprovincial trade, but it has actually added some,” says Gabriel Giguère, senior policy analyst at the MEI. “With the premiers of every province saying they want to reduce these barriers, we hope that François Legault will finally walk the walk.”

Last week, the provincial and territorial premiers agreed on the importance of facilitating internal trade in order to strengthen the Canadian economy, according to a press release published by the office of Prime Minister Justin Trudeau.

That lines up with the Canadian Free Trade Agreement, in effect since 2017, in which the provincial and territorial premiers had committed to reducing trade barriers between Canadian provinces.

When the agreement was signed, Quebec was the province that had asked for the most exemptions to internal free trade, with a total of 35 measures.

Today, Quebec has 36 exceptions to the accord, following the addition last year of measures limiting trade in cannabis.

These exceptions affect areas as broad as the transport and alcohol sectors, and as narrow as race horses.

While Quebec has added exemptions, Alberta went from 27 exceptions in 2017 to just eight today.

A recent National Bank report estimated that these restrictions were equivalent to imposing an average tariff of 21 per cent on the goods and services targeted by Canadian provinces. For Quebec specifically, these restrictions amount to a tariff of 25 per cent.

“The inertia of provincial governments, and in particular the government of Quebec, has made us more vulnerable to American tariff threats,” says Mr. Giguère. “It’s high time for the government to table a bill to tackle these 36 exceptions.”

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The MEI (formerly known as the Montreal Economic Institute) 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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