Removing internal trade barriers would help mitigate damage from Trump tariffs

President Trump’s tariffs have prompted renewed interest among federal and provincial policymakers to remove interprovincial trade barriers in Canada to mitigate some of the economic damage. But whatever happens with U.S. policy, with a new prime minister and a federal election looming, trade liberalization within our provincial borders is long overdue.

For decades in Canada, government policies have created substantial barriers to investment, trade and migration between provinces and territories, which hinder the free movement of workers, goods and services in Canada and limit economic growth.

These trade barriers include differences in licencing recognition and safety rules, trucking regulations, credential recognition, provincial monopolies over alcohol distribution, and strict restrictions on the sale of certain goods across provincial borders. This complex array of policies, unique to each province and territory, creates compliance challenges, additional costs for businesses and higher prices for consumers.

According to a 2019 report from the International Monetary Fund, internal trade barriers add between 7.8 per cent and 14.5 per cent to the prices of goods and services purchased by Canadians—that’s more than the GST (5.0 per cent). The harm to the broader economy is also no secret. Research by Ryan Manucha and Trevor Tombe estimates internal trade barriers cost the national economy as much as $200 billion annually.

And when workers are able to use their credentials obtained in one province to get jobs in other provinces, they have more opportunity. At the same time, businesses benefit from an expanded pool of qualified workers.

Again, provincial premiers and federal representatives recently met to discuss reducing trade barriers. For example, the federal government announced plans to strengthen the Canada Free Trade Agreement (CFTA)—a 2017 agreement intended to eliminate barriers for the movement of people, goods and services within Canada. The CFTA has been plagued with an abundance of exceptions that allow Canadian governments across the country to exclude many industries (i.e. dairy and poultry) or specific legislation from the agreement. The government has pledged to remove more than half of these exceptions to allow for more consistent rules and regulations across provinces.

While this is a step in the right direction, it doesn’t go nearly far enough. Working alongside the provincial and territorial governments, federal policymakers should propose a policy of “mutual recognition” so any good, service or professional credential that meets the regulatory requirements of a single province or territory automatically satisfies the requirements of another.

Research shows mutual recognition would increase Canada’s GDP per person—a broad measure of living standards—between $2,900 to $5,100 over the long term.

Provinces can also act on their own through bilateral or multilateral partnership agreements to harmonize regulations and improve worker mobility. One option is to expand the scope of the New West Partnership Trade Agreement (NWPTA) between British Columbia, Alberta, Saskatchewan and Manitoba, and include more provinces in the agreement.

Given President Trump’s aggressive stance on tariffs, federal and provincial policymakers must create an integrated internal trade market in Canada to offset some of the potential economic damage. By eliminating trade barriers, governments across the country can help increase the ability of workers and businesses to prosper, decrease prices, raise household incomes and improve living standards.

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Related Topics:#FraserInstitute #JakeFuss InterProvincialTradeBarriers TrumpTariffs

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Biden-era tax on natural gas repealed, a boon for energy industry

Published on March 18, 2025

Todayville

Fr0m The Center Square

By Thérèse Boudreaux

America’s natural gas industry celebrated Monday after President Donald Trump signed into law a resolution repealing Biden-era fees on methane emissions.

The Waste Emissions Charge, which Republicans say is the equivalent of a natural gas tax, was authorized by the 2022 Inflation Reduction Act and implemented by the Environmental Protection Agency in November 2024.

The resolution rescinds that regulation under the Congressional Review Act. The CRA legislation gives Congress the authority to repeal regulations issued during the final months of a previous administration.

House Committee on Energy and Commerce Chairman Brett Guthrie, R-Ky., called the repeal “a victory for the American businesses and families who would have been forced to bear the cost of the Biden-Harris Administration’s natural gas tax.”

“It’s time to restore American energy dominance by harnessing innovation and producing the natural gas needed to support our electric grid,” Guthrie added.

Energy experts who testified before Congress in February said the high energy prices during Joe Biden’s presidency directly resulted from increased environmental regulations on energy production. The regulations slowed down domestic energy production and consequently led to increased costs, they said.

The American Exploration and Production Council (AXPC) shares the same view, praising Republicans in Congress and Trump for repealing the Waste Emissions Charge.

“AXPC thanks President Trump for signing the Congressional Review Act legislation – to undo EPA’s flawed rule to implement the natural gas tax,” AXPC CEO Anne Bradbury stated. “While American energy producers remain laser focused on reducing methane emissions, this punitive rule risked undermining those efforts.”

An analysis by the Congressional Budget Office shows that “Charging for methane emissions leads to an increase in the price of natural gas and a decrease in the quantity of natural gas produced and consumed.”

But environmental groups have argued that the legislation will increase energy costs and disrupt efforts to reduce emissions of a potent greenhouse gas. Nearly 80 environmentalist groups recently sent a letter urging lawmakers to keep the regulation, about to take effect, in place.

The Center Square reached out to multiple environmental groups but received no response in time for publication.

Thérèse Boudreaux

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Trump’s EPA, DOGE join forces to cut Biden era grants totaling $1.7 billion, looking for billions more

Published on March 17, 2025

Todayville

From LifeSiteNews

By Matt Lamb

LaTricea Adams served on President Joe Biden’s Environmental Justice Advisory Council. At the same time, she applied for a grant on behalf of her nonprofit Young, Gifted & Green – and received $20 million, according to the Washington Free Beacon. The grant is about 10 times the annual revenue of the nonprofit…

The Environmental Protection Agency (EPA) continues to cut wasteful grants and programs awarded under the previous presidential administration, saving U.S. taxpayers $1.7 billion.

EPA administrator Lee Zeldin announced the latest cuts on March 10. He is working with the Department of Government Efficiency (DOGE) and Elon Musk on a “line-by-line review of spending,” according to a news release.

While the cuts total $1.7 billion, there is a larger pot the group is seeking to claw back – $20 billion routed through Citibank on for the “Greenhouse Gas Reduction Fund,” according to The Daily Wire.

The fund acted like a piggy bank for favored left-wing groups, with $2 billion going to “Power Forward Communities, a green group linked to Democrat Stacey Abrams,” The Daily Wire reported.

Zeldin has already identified nearly $60 million in ideological grants from the Biden administration for “environmental justice.”

“Additional monies were allocated for DEI training for staff, expanding environmental justice content through the America’s Children and the Environment Program, contractors to advance agency DEI initiatives, and more,” the EPA announced in February. “More savings have been accrued through the agency’s cancellation of outside contractors hired to plan office-wide retreats, and from other contracted work that could be insourced.”

Some of the “environmental justice” grants canceled recently by Zeldin went to well-connected Democrats, according to a Washington Free Beacon report.

For example, LaTricea Adams served on President Joe Biden’s Environmental Justice Advisory Council. At the same time, she applied for a grant on behalf of her nonprofit Young, Gifted & Green – and received $20 million, according to the Washington Free Beacon. The grant is about 10 times the annual revenue of the nonprofit.

The grant would “result in the establishment of the Mid-South Environmental Justice Center with a community advisory board,” according to Democrat Tennessee Congressman Steve Cohen. “It will also help to implement a community engagement plan, coordinated workforce training in green jobs, and hands-on water- and air-quality testing,” a January news release from his office stated.

Democracy Green “is a small mother-daughter operation that has never conducted wetlands restoration or lead pipe removals,” according to the Free Beacon. But the group’s board president, La’Meshia Whittington, served on an EPA advisory committee.

The group pushed back against the accusations, calling the Free Beacon an “obscure publication” that published “outright fabrications.” “Our organization has successfully executed water infrastructure projects in North Carolina, including emergency water support and remediation efforts after natural disasters,” the group wrote to Zeldin. “We own the wetland in question- no funds from the CCG Grant are being used for land acquisition but rather this project will restore an already contaminated creek that runs adjacent to some communities benefiting from the pipe replacement.”

Zeldin’s actions are part of a broader push by President Donald Trump to remove onerous economic regulations pursued in the name of fighting “climate change.”

He has also focused on “unleashing American energy” to bring down the cost of electricity and manufacturing.

“It is thus in the national interest to unleash America’s affordable and reliable energy and natural resources,” he wrote in a day one executive order. “This will restore American prosperity — including for those men and women who have been forgotten by our economy in recent years. It will also rebuild our Nation’s economic and military security, which will deliver peace through strength.”

To fulfill this promise, Zeldin announced a “deregulatory effort” to “bring down the cost of living,” according to Breitbart.

“We will bring down the cost of living. It’s going to be easier to heat your home, to purchase a vehicle, to operate a business,” Zeldin told the outlet over the weekend.

“I’ve been told that we’re going after the holy grail of the climate change religion, and I would just say this: that we can protect the environment and grow the economy. It’s not a binary choice,” he said. “We don’t have to just choose one. The Trump administration chooses both.”