Canada Plans Free Trade Within the Country to Counter US Tariffs, Says PM Carney
Canadian Prime Minister Mark Carney has announced plans to remove trade barriers between provinces and territories to help offset the impact of U.S. tariffs. Speaking after a meeting with provincial and territorial leaders, Carney said the goal is to create free trade within Canada by July 1. According to Reuters, this move could boost the economy by 4% to 8% and reduce trade costs by up to 15%.
Carney explained that eliminating internal trade barriers would more than make up for the effects of U.S. tariffs. He highlighted three key steps to achieve this: making rules the same across provinces, having provinces recognize each other’s rules, and creating common national standards.
Business groups have long criticized the trade barriers between Canada’s 10 provinces and 3 territories, as well as the slow approval process for major projects like mines and oil pipelines. Carney’s plan includes speeding up approvals by creating a “one-window approval process” to cut down on duplicate requirements.
The U.S. recently imposed a 25% tariff on Canadian steel and aluminum, with more tariffs expected. Since 75% of Canada’s exports go to the U.S., the country’s economy is highly vulnerable to a trade war. Carney, who recently became prime minister, has not yet spoken to U.S. President Donald Trump but is focused on strengthening Canada’s internal trade to protect its economy.
Carney also promised to support workers and businesses affected by the tariffs. This includes making it easier for laid-off workers to access employment insurance and allowing businesses to delay corporate tax payments.
This plan reflects Canada’s effort to become more self-reliant and resilient in the face of global trade challenges. By removing internal barriers, Canada hopes to create a stronger, more unified economy that can better withstand external pressures.
Credit: Reuters for original reporting and details.