Mark Carney’s Push for Internal Free Trade: Canada’s Bold Response to U.S. Tariffs

In a decisive move to strengthen Canada’s economy amidst rising trade tensions with the United States, Prime Minister Mark Carney announced on Friday his administration’s plan to eliminate internal trade barriers.

Following a meeting with provincial and territorial leaders, Carney outlined his vision for nationwide free trade, aiming to introduce legislation by July 1 that would allow goods to move freely across Canada without federal restrictions.

Carney’s announcement comes in response to U.S. President Donald Trump’s recent imposition of 25% tariffs on Canadian steel and aluminum imports, with additional tariffs expected to follow in April.

Given that 75% of Canadian exports go to the U.S. and a third of its imports come from its southern neighbor, Canada faces significant economic vulnerabilities.

However, Carney expressed confidence that eliminating domestic trade barriers could not only neutralize the impact of these tariffs but also boost economic growth by 4% to 8%, according to research cited on his website.

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The prime minister emphasized the importance of harmonizing regulations across provinces to ensure consistency in trade rules and standards. He also advocated for the mutual recognition of provincial regulations, which would allow products and services that meet one province’s standards to be accepted nationwide.

In addition, he proposed establishing common national guidelines to eliminate redundancy and inefficiency, fostering a more integrated economy.

For years, business groups have voiced concerns over the regulatory patchwork that hinders trade between Canada’s 10 provinces and three territories.

A cumbersome permitting process has often delayed major projects, including mines, oil pipelines, and other essential infrastructure. Carney’s plan seeks to address these longstanding issues while fostering economic resilience.

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To accelerate the development of key projects, the government plans to introduce a “one-window approval process.” This initiative aims to eliminate overlapping federal and provincial environmental assessments, reducing delays and making Canada more attractive to investors.

Additionally, Carney reassured that while an oil and gas cap would be implemented, it would limit emissions rather than production, ensuring continued industry growth while addressing environmental concerns.

Recognizing the need for a more fluid labor market, Carney emphasized the importance of removing barriers that restrict workers from moving freely between provinces. His government is also committed to investing in transportation links to resource-rich areas as part of a broader “national trade and energy corridor strategy.”

To mitigate the financial strain caused by U.S. tariffs, Carney announced measures to support both businesses and workers. These include easier access to employment insurance for laid-off workers and deferred corporate tax payments, allowing businesses to delay corporate income tax payments and remittances to ease their financial burden.

Carney, who recently assumed office, is expected to announce an April election in the coming days. While he has yet to engage directly with President Trump or unveil a comprehensive U.S. trade strategy, his domestic economic agenda signals a proactive approach to strengthening Canada’s internal market.