An agreement signed by all Canadian provinces, territories, and the federal government will eliminate interprovincial trade barriers on many goods, effective December. However, food and alcohol are excluded from this agreement. The initiative aims to enhance trade opportunities for businesses amid U.S. tariffs.

British Columbia's Minister of Jobs and Economic Growth, Ravi Kahlon, announced the agreement in Victoria. He stated that the deal, signed in Yellowknife, is a significant step toward reducing domestic trade barriers. "This agreement makes it easier for goods that meet the rules in one province or territory to be sold across Canada without extra approvals, labels, or testing," Kahlon said. He emphasized the goal of creating a unified market across the country.

The agreement will cover thousands of products, including clothing, toys, vehicles, health technology, and industrial goods. Kahlon expressed hopes to expand the agreement to include food, alcohol, and financial services in the future, acknowledging that these areas are regulated differently and will require more time to address.

Bridgitte Anderson, president and CEO of the Greater Vancouver Board of Trade, noted the importance of this agreement. "The business community has long called for a simple principle: if a product is approved for sale in one province, it should be approved in all provinces," she said.

James Donaldson, CEO of the B.C. Food and Beverage Association, commented on the challenges of harmonizing food safety standards across provinces. He stated, "I think it's progress, because we've been talking about this for some time, so it's nice to see them actually taking some action." Donaldson also expressed hope for a unified set of food safety standards to facilitate trade.

Despite the optimism surrounding the agreement, some experts remain skeptical. Marc Lee, a senior economist, described the agreement as "political theatre" that may not significantly impact sectors beyond food and alcohol. He pointed out that previous research indicated that removing trade barriers would have minimal effects on Canada’s economy. "The real barriers for businesses and trading across Canada are distance and transportation costs," Lee said.

The agreement is seen as a response to the economic pressures from global inflation and the need for trade diversification, especially in light of challenges posed by the U.S. market. Kahlon highlighted that the agreement will provide consumers with more choices and competitive pricing while allowing businesses to save time and costs.

The Canadian Federation of Independent Business praised the agreement as a landmark achievement that will help dismantle costly internal trade barriers. They called for the next phase to include services, food products, and alcohol, which still face significant trade restrictions.

Overall, the agreement aims to streamline the process for businesses, allowing them to sell products across Canada without navigating complex regulations across different jurisdictions. It is expected to enhance economic growth and productivity by reducing regulatory delays and freeing resources for innovation.