Amid economic uncertainty in Canada due in part to U.S. tariffs, the Ontario government has reached agreements with Saskatchewan, Alberta and Prince Edward Island, with the aim of taking steps to reduce trade barriers among the provinces.
Ontario Premier Doug Ford signed separate memorandums of understanding (MOU) with Saskatchewan Premier Scott Moe, Alberta Premier Danielle Smith and P.E.I. Premier Rob Lantz in Saskatoon on Sunday ahead of a first ministers’ meeting there.
Ontario signed an MOU with Manitoba in May and with Nova Scotia and New Brunswick in April.
Ford, who held a news conference only with Moe about the MOU, said the province is “standing up for free trade” within Canada by signing such agreements, adding that they’re an attempt to offset the impact of U.S. tariffs on the Canadian economy.
“Our government is on a mission to protect Ontario and to protect Canada,” he told reporters in Saskatoon.
“At a time when President [Donald] Trump is taking direct aim at our economy — and make no mistake about it, he wants to annihilate our economy, no matter if it’s manufacturing in Ontario or any other jurisdiction that he can get his hands on, bring it down to the U.S. — and we’re going to fight like we’ve never fought before, not just to protect Ontario but to protect the rest of our our country.”
Ford said the agreement aims to not only increase the standard of living in Ontario and Saskatchewan but to improve investor confidence and allow for the free movement of their “best and most in-demand” workers.
“We’re doing this by reducing barriers to internal trade…. We need to build a more competitive, more resilient, more self-reliant Canadian economy.”
Saskatchewan’s Moe said the MOU is “yet one more way that we are able to stand strong for our provinces, and collectively as provinces, stand strong for our country and all the people who call Canada home.” He said both he and Ford have long been advocates of streamlining trade across the country.
“It shouldn’t be easier to trade with other countries than it is to trade between the Canadian provinces of our nation,” Moe told reporters.
“It’s more important now, I would say, than ever for us to prioritize removing any and all barriers that we have that limit flow of trade and limit flow of professionals from moving across Canada,” he said.
“It’s very greatly appreciated to have another like-minded province join us on that front and to continue to put words into action.”
Moe said the MOU contains mutual recognition and reciprocity — in particular, mutual recognition of goods, workers and investment. The agreement will only strengthen their respective economies, benefit workers and businesses and enhance the Canadian economy, he said.
According to the MOU, Ontario and Saskatchewan pledge to build on “enabling legislation” to remove internal trade barriers to boost the flow of goods, services, investment and workers, while maintaining and strengthening the levels of public safety.
What we know about the trade deal between Ontario and Manitoba
Ontario and Saskatchewan agreed that while working to remove trade barriers, they will respect the role of Crown corporations within some provincial industries, while Ontario and Alberta will respect the integrity and role of regulators.
Ontario and the other three provinces also agreed to work on improving interprovincial labour mobility, saying they will aim to ensure any good, service or worker deemed acceptable in one province is also deemed acceptable in the other.
As well, all agreed to work on a framework to implement a direct-to-consumer sales system of alcohol, “so that producers have easier access to market opportunities across the country, and so that consumers across Canada have greater choice and access to a broader selection of alcoholic beverages.”
In a news release on Sunday, Alberta’s Smith said: “Together, Alberta and Ontario are taking a big step toward a more open, competitive and united economy.”
She added: “This agreement is about getting results, making it easier for people to work, do business and grow across provincial lines. It’s time to stop letting outdated rules hold us back and show Canadians what real economic leadership looks like.”
Lantz said in the release: “By eliminating unnecessary trade barriers and streamlining labour mobility, we’re fostering a more unified and competitive national economy. Our collaboration with Ontario underscores our commitment to one Canadian economy.”
According to the Ontario government, 35 per cent of Canada’s trade takes place within its borders.
In early March, the U.S. imposed tariffs of 25 per cent on Canadian exports and 10 per cent on energy product exports from Canada. Later in March, the Trump administration introduced tariffs of 25 per cent on Canadian steel and aluminum products, and in early April, it imposed a 25 per cent tariff on Canadian automobiles.
Trump has threatened to double the tariffs on steel and aluminum imports to 50 per cent on Wednesday.
