GOLDBERG: Manitoba urged to join growing push for domestic free trade

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Manitoba businesses currently face fewer barriers when trading with dozens of foreign countries than with many of Canada’s own provinces.

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This is largely due to Canada’s 15 free trade agreements with 51 nations, which reduce tariffs on goods and services to nearly zero. In contrast, internal trade barriers within Canada are equivalent to a 21% tariff, according to the International Monetary Fund.

Politicians across the spectrum agree this needs to change.

Before the federal election was called, all of Canada’s premiers met in Ottawa and committed to advancing domestic free trade by Canada Day. Since then, only 3 provinces — Nova Scotia, Ontario, and Prince Edward Island — have introduced legislation to remove internal trade barriers on a reciprocal basis.

Manitoba Premier Wab Kinew has yet to take similar action.

These legislative efforts aim to eliminate trade barriers with any province that reciprocates, setting the stage for a freer trade zone among the three participating provinces. Manitoba’s absence means local businesses and workers will miss out on improved access to these markets.

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Despite receiving high marks from the Canadian Federation of Independent Business (CFIB) for internal trade openness, Manitoba still has room to improve. With Ontario — home to 38% of Canada’s GDP — now committed to freer internal trade, Kinew has a clear opportunity to enhance access for Manitoba companies to the country’s largest provincial economy.

Joining this movement would also encourage other provinces to engage in nationwide trade reform. Although the New West Partnership facilitates trade among Manitoba, Saskatchewan, Alberta, and British Columbia, it includes numerous exceptions and does not fully connect eastern and western provinces.

According to the CFIB, internal trade barriers cost Canada $200 billion annually. In an era of rising U.S. tariffs and protectionist policies, Canada cannot afford to leave this economic potential untapped.

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To Kinew’s credit, he has demonstrated leadership in strengthening global trade ties, particularly with the European Union. He also reversed his stance on Churchill and now supports developing a second port there — a move expected to boost the national economy and expand access to global markets.

“We can really turn this period of turbulence into a period of opportunity,” Kinew said earlier this month. “Post-Trump, any of the economic development ideas we had in Canada and Manitoba, they need to be 10 times as big, 100 times, to stimulate jobs.”

While international trade expansion is important, domestic trade reform remains essential.

Passing reciprocal free trade legislation would be a simple and strategic win for Manitoba. With Ontario already moving forward, the province can gain barrier-free access to Canada’s largest subnational economy by enacting just one law.

Such a move would also demonstrate leadership from a western province, joining a trend currently led by eastern counterparts.

Kinew now has a chance to act decisively. Manitoba should step up and support the creation of a fully free and reciprocal trade zone within Canada.

— Jay Goldberg is the Canadian Affairs Manager at the Consumer Choice Center, and a guest writer for the Winnipeg Sun.

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