Unleash free trade in Canada by Canada Day by tabling legislation to eliminate all federal barriers to interprovincial trade and labour mobility and to remove all federal exceptions under the Canadian Free Trade Agreement. • YouBetcha

Current Status

Status: Kept The government tabled and passed legislation to eliminate federal barriers to interprovincial trade and labour mobility before the Canada Day deadline.

Background

The promise to unleash free trade within Canada by removing internal barriers has been a long-standing economic goal, aimed at boosting domestic commerce and labour mobility. Interprovincial trade barriers have historically cost the Canadian economy billions annually by restricting the flow of goods, services, and workers across provincial lines. Fulfilling this commitment required the federal government to table legislation that would dismantle federal-level obstacles and align with the principles of the Canadian Free Trade Agreement. This was seen as a critical step to strengthen Canada’s domestic market, especially amid external trade pressures. [1]

Evidence

The current government, sworn in after the most recent election, took decisive action on this promise in 2025. On June 6, 2025, Bill C-5, titled the One Canadian Economy Act, was introduced for first reading in the House of Commons. This bill included provisions to enact the Free Trade and Labour Mobility in Canada Act, which specifically targets the removal of federal barriers to interprovincial trade of goods and services and improves labour mobility by recognizing provincial and territorial authorizations at the federal level. [4]

By June 20, 2025, the bill had passed third reading in the House of Commons, marking a significant legislative milestone. The Prime Minister’s office confirmed this development in a public statement, emphasizing the legislation’s role in building a stronger domestic economy. [7] The bill received royal assent on June 26, 2025, well before the Canada Day deadline of July 1, 2025, as outlined in the original promise. The enacted Free Trade and Labour Mobility in Canada Act explicitly states the government’s intent to remove federal exceptions under the Canadian Free Trade Agreement, aligning with the promise’s wording. [1][2][3]

The legislation is set to come into force on January 1, 2026, but the promise’s specific requirement was to table legislation by Canada Day, not to have it fully implemented by that date. Additional statements from First Ministers in March 2025 underscored a commitment to reducing internal trade barriers, though these discussions did not constitute legislative action. [6] No actions by previous governments are relevant to this assessment, as the focus remains on the current administration’s record.

Assessment

The federal government has delivered on its commitment to unleash free trade within Canada by tabling and passing legislation before the Canada Day deadline of July 1, 2025. Bill C-5, which became law on June 26, 2025, directly addresses the elimination of federal barriers to interprovincial trade and labour mobility while committing to remove federal exceptions under the Canadian Free Trade Agreement. This legislative action meets the explicit terms of the promise, which hinged on introducing the legislation by the specified date, not on its full implementation or immediate economic impact.

While the law’s effects will not be felt until it comes into force in 2026, the government’s responsibility under this pledge was clear and has been fulfilled. Canadians can now look to the next phase—implementation and collaboration with provinces—to see if the promised economic benefits of higher-paying jobs and unlocked potential materialize. For now, the legislative foundation has been laid as committed.

Current Status

Background

Evidence

Assessment

Sources