Canadian provinces impose an average tarrif of 21% on internal trade (vs 3% on U.S Imports)
Canada’s interprovincial trade barriers are equivalent to a 21% tariff, per the IMF. That’s 7x higher than the barriers imposed on U.S. imports (3%).
As a result, since 1989, interprovincial trade has dropped from 50% to 40% relative to international trade.
Removing these barriers could raise GDP per capita by 3.8% (per 2019 IMF study) and attract more investment by opening up the domestic market. Yet foreign companies often get better access to Canadian markets than Canadian businesses themselves.
Canada’s interprovincial trade barriers are equivalent to a 21% tariff, per the IMF. That’s 7x higher than the barriers imposed on U.S. imports (3%).
As a result, since 1989, interprovincial trade has dropped from 50% to 40% relative to international trade.
Removing these barriers could raise GDP per capita by 3.8% (per 2019 IMF study) and attract more investment by opening up the domestic market. Yet foreign companies often get better access to Canadian markets than Canadian businesses themselves.