Title: Expert Calls for Enhanced Powers for Canada’s Competition Bureau

OTTAWA — Canada’s competition watchdog should be empowered to dismantle inter-provincial trade barriers, according to a leading expert. Ryan Manucha, a research fellow at the C.D. Howe Institute, made this statement during a competition policy event on Wednesday. He emphasized that the Competition Bureau should be granted new “soft power” to facilitate mutual recognition of various rules and regulations among provinces and territories.

Manucha argued that an institutionalized watchdog for internal trade is necessary, and the Competition Bureau is well-suited for this role due to its experience in addressing anti-competitive practices. He noted that reducing trade barriers would not only lower costs but also enhance professional mobility and stimulate economic growth across Canada.

Speaking at the 2025 Competition Summit in Ottawa, Manucha acknowledged the need for provincial regulations in trade matters but insisted that the current situation has become excessive. "We have a lot to do," he stated.

Matthew Boswell, Canada’s Commissioner of Competition, echoed Manucha’s sentiments, advocating for a more coordinated and robust approach to competition. He has recently called for a “whole-of-government” strategy to enhance domestic trade by addressing various regulations and standards that hinder competition. Boswell pointed out that competition intensity in Canada has been declining, making the need for inter-provincial trade improvements increasingly urgent. "We’ve been getting worse over time," he said.

Both experts referenced Australia’s National Competition Policy, which was implemented between 1995 and 2005. This policy extended competition law across all sectors, including utilities, and required all levels of government to review their regulations to eliminate unjustified competition barriers. Unlike Canada’s voluntary approach, Australia’s plan included binding commitments and an independent National Competition Council.

Boswell noted that Australia’s reforms resulted in a 2.5 percent increase in gross domestic product (GDP). In Canada, the federal government has prioritized improving domestic trade, especially in light of recent U.S. tariffs that have impacted key exports like steel and aluminum. Earlier this year, Ottawa eliminated all federal exceptions to domestic free trade, but many provincial and municipal barriers remain unaddressed and rely solely on political pressure.

Industry Minister Mélanie Joly, speaking at the Ottawa Summit, stated that the Liberal government will take a “hawkish” stance on competition as part of a broader strategy to reduce costs. "Competition is another way we are lowering prices," she said, adding that it promotes fairness and drives innovation. Although Joly was unavailable for an interview, she mentioned that the government has already implemented changes in telecommunications and housing to enhance competition for consumers.

Boswell later addressed a gathering of competition lawyers and advocates, highlighting that competition is a powerful tool for combating rising prices and improving services. He cited a recent study indicating that airfares decrease by an average of 9 percent when a new competitor enters a market. "With vigorous competition, businesses must provide the products consumers want and offer them at prices they are willing to pay," he explained. "In a competitive market, the consumer holds the power. When there is limited competition, incumbent businesses make the rules."

The issue of domestic trade barriers in Canada dates back to before Confederation. The 1995 Agreement on Internal Trade was the first major attempt to address these barriers but had limited success due to numerous exemptions and insufficient enforcement. The agreement was updated in 2017 with the Canada Free Trade Agreement, which also faced challenges with exemptions across various sectors and lacked effective enforcement measures.