Canada's economy is facing significant challenges, highlighted by the loss of 66,000 jobs last month and an increase in the unemployment rate to 7.1 percent. This downturn is largely attributed to slow economic growth and limited trade between provinces. Despite previous efforts to improve inter-provincial trade through agreements like the 1995 Agreement on Internal Trade and the Canadian Free Trade Agreement, barriers remain, contributing to a growing population of unskilled and unemployed newcomers.

Mark Carney, a prominent figure in Canadian politics, has positioned himself as a candidate for the Prime Minister's Office by focusing on issues related to U.S. trade policies rather than addressing domestic economic concerns. His campaign has drawn attention to the persistent barriers to trade within Canada, which he argues are a significant factor in the country's economic struggles. "By working together, we can expand and build one more interconnected and resilient Canadian economy," Carney stated in March, emphasizing the need for collaboration among provinces.

Statistics Canada reports that approximately 1.6 million Canadians were unemployed in July, underscoring the urgency of addressing these trade barriers. While the federal government is involved, the responsibility largely falls on provincial governments to tackle these issues. Ontario has made notable progress by becoming the first province to eliminate all exceptions in the Canadian Free Trade Agreement.

Vic Fedeli, Ontario's Minister of Economic Development, Job Creation and Trade, announced that the province has signed memorandums of understanding with all provinces and territories except Newfoundland and Quebec. "We’re moving forward with mutual recognition," Fedeli explained. He noted that if a product meets the regulations of one province, it will be accepted in Ontario, regardless of minor differences in standards.

Fedeli highlighted the challenges of inter-provincial trade, stating that importing goods from Texas can often be easier than shipping between Canadian provinces. He cited the recent removal of restrictions on direct-to-consumer alcohol sales as a positive step forward. "If you’re from Saskatchewan and you go to Niagara and want to buy more wine, you’ll now be able to order it online instead of having to return to the winery," he said.

The Progressive Conservative Party of Ontario has previously attempted to eliminate trade barriers. Former leader Tim Hudak advocated for Ontario to join the New West Partnership Trade Agreement, which includes Alberta, Saskatchewan, and British Columbia. Hudak argued that this partnership would create jobs and enhance economic opportunities for residents in both Ontario and the western provinces. However, after Hudak lost the 2014 election to Liberal Kathleen Wynne, the initiative did not materialize, likely due to political resistance and a preference for maintaining the status quo.

The current federal Liberal government is now seeking to address these longstanding trade issues, but the path forward remains complex as provinces navigate their own economic landscapes.