Cantech Letter logo

Federal government strengthens the Canadian Free Trade Agreement

Minister of Transport and Internal Trade
Monday at 5:45pm ADT · June 30, 2025 4 min read

OTTAWA, ON, June 30, 2025 /CNW/ – Today, the Honourable Chrystia Freeland, Minister of Transport and Internal Trade, announced a historic step towards freer trade within Canada.

As part of the Government’s efforts to build one Canadian economy, the federal government will be removing all remaining federal exceptions from the Canadian Free Trade Agreement (CFTA), eliminating all 53 in the Agreement since its introduction in 2017.  

Most of the exceptions removed focus on procurement, which will provide Canadian businesses with more opportunities to be competitive across the country. For example, as part of this last review, the federal government is removing procurement exceptions related to financial entities, commercial land development, transportation services and space projects.

All provincial and territorial governments have committed to undertaking a review of their respective exceptions under the CFTA. Together, they have made great progress and the results will be announced at the upcoming meeting of the Committee on Internal Trade on July 8, 2025.

Today’s announcement builds on the government’s efforts to strengthen the Canadian economy. Most recently, the government passed Bill C-5, the One Canadian Economy Act, which will remove federal barriers to internal trade and labour mobility, and advance nation-building projects to drive Canadian productivity, economic growth, and competitiveness.  

The federal government will continue to show leadership in this area, and work with provinces and territories to strengthen the CFTA, advance mutual recognition, and ensure seamless labour mobility within Canada.

Quotes

“Canada’s new government is breaking down trade barriers and building one strong economy – connected by Canadian projects, powered by Canadian energy, and crafted by Canadian workers. Together, we can give ourselves more than any foreign nation can take away.”

—The Rt. Hon. Mark Carney, Prime Minister of Canada

“Removal of all federal exceptions in the Canadian Free Trade Agreement is one of the many recent measures we are taking, following the passing of the One Canadian Economy Act, to eliminate internal trade barriers and cut red tape for Canadian businesses. We are moving quickly on commitments to improve labour mobility for workers across the country, implement mutual recognition agreements to gets goods and services moving, and removing duplication of requirements which for too long have created extra costs and delays for Canadian businesses and workers. We will create one Canadian economy; one with more opportunities for Canadian businesses and Canadian workers, an economy that will put more money in the pocket of every Canadian.”

—The Honourable Chrystia Freeland, Minister of Transport and Internal Trade

Quick Facts

  • In 2023, more than $530 billion worth of goods and services moved across provincial and territorial borders, representing almost 20% of Canada’s gross domestic product.
  • The Canadian Free Trade Agreement (CFTA) came into force on July 1, 2017, to reduce and eliminate barriers to the free movement of persons, goods, services, and investments within Canada and to establish an open efficient, and stable domestic market.
  • CFTA exceptions are provisions of the agreement that allow federal, provincial or territorial governments to opt out of obligations under the agreement, for example to exclude an industry, sector, or legislation. Canadian business and industry have expressed concern that these exceptions can hinder free trade by allowing for inconsistent rules, standards, and licensing requirements for goods, investments and services. Leaders, such as the Canadian Chamber of Commerce, the Business Council of Canada and the Canadian Federation of Independent Business, note that reducing the number of exceptions in the CFTA will help strengthen internal trade and support the productivity of Canada’s economy.
  • The government is also working closely with provinces and territories to quickly expand the Mutual Recognition Project in the trucking sector, prioritize broader mutual recognition to make everyday items more affordable, and implement the Forum of Labour Market Ministers Action Plan, which outlines concrete steps to improve the movement of workers across provinces and territories.

Related Products

Associated Links

SOURCE Minister of Transport and Internal Trade

displaying rededs