Removing barriers to trade between Quebec and the rest of Canada could grow our economy by $69.9 billion, says the MEI

Montreal, May 29, 2025 – If Quebec were to adopt a mutual recognition act with the rest of the country, similar to Nova Scotia’s, Canada’s economy would stand to grow significantly, according to a new Economic Note published by the MEI earlier today.

“The growing momentum to eliminate internal barriers to trade in Canada is promising,” says the publication’s author, Trevor Tombe, professor of economics at the University of Calgary and senior fellow at the MEI. “If Quebec were to join the growing interprovincial free trade zone started by Nova Scotia, both it and Canada would be much more prosperous.”

Different regulations, certifications and testing requirements between provinces add costs, complexity and frustration to the process of selling goods and services across provincial boundaries. These many rules are commonly referred to as “interprovincial trade barriers.”

Following U.S. President Donald Trump’s tariff threats, governments across Canada have identified the reduction of these barriers as a way to make the country’s economy more resilient.

Nova Scotia Premier Tim Houston was the first to recommend a model of mutual recognition of standards (without further testing or fees) and accelerated licensure of professional credentials with provinces that reciprocate. This would essentially render moot the vast majority of barriers to interprovincial trade with provinces that adopt similar legislation.

On March 26, 2025, Nova Scotia’s Free Trade and Mobility Within Canada Act received royal assent, becoming law in the province.

“The main benefit of mutual recognition policies is that they bypass the regulatory gridlock that has long plagued interprovincial trade discussions,” said Dr. Tombe. “It’s a trade first, harmonize later approach that allows Canadian consumers and businesses to begin to reap the benefits of these agreements without delay.”

Since then, Premiers Doug Ford and Rob Lantz, of Ontario and Prince Edward Island respectively, have tabled similar bills in their provinces.

So far, the Acts adopted and mutual recognition agreements signed are leading the way to internal free trade zones with the potential to boost the country’s economy substantially. The gains from free trade between Ontario and Nova Scotia alone, for example, could boost the Canadian economy by nearly $4.1 billion.

If Quebec were to adopt a similar bill to those of Nova Scotia, Ontario and Prince Edward Island, or sign mutual recognition agreements with all Canadian provinces, the country’s economy could grow by an estimated $69.9 billion.

Of particular interest, the signing of an agreement between Quebec and Ontario alone would boost Canada’s GDP by an estimated $32.2 billion.

“Premier François Legault should follow Nova Scotia Premier Tim Houston’s approach and adopt mutual recognition laws with the rest of the country,” said Dr. Tombe. “It’s one of the surest and lowest-cost ways for provincial governments to unleash Canadian productivity growth.”

The MEI economic note is available here.

Tailored provincial media releases can be found here: Alberta / British Columbia / Manitoba / New Brunswick / Newfoundland and Labrador / Nova Scotia / Ontario / Prince Edward Island / Saskatchewan.

* * *

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

—30 —

Interview requests
Béatrice Trifiro
Intern, Communications
Cell: 819-664-5674