Canada ends CFTA exceptions to build one Canadian economy

Key sectors impacted by the removal include financial services, commercial land development, transportation, and space projects.

The CFTA was introduced 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.

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.

The 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, Canadian government said in a press release.

The federal government reaffirmed its commitment to collaborate with provinces and territories to further strengthen the CFTA, promote mutual recognition, and ensure seamless labour movement across Canada.

“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,” said 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,” said Chrystia Freeland, Minister of Transport and Internal Trade.

“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,” added Freeland.

ALCHEMPro News Desk (SG)