Committee on Internal Trade Meeting

As global trade uncertainty continues, federal, provincial, and territorial governments remain committed to work together to strengthen Canada's domestic economy and, over the past six months, Ministers have advanced internal trade discussions further than ever before.

Today’s Committee on Internal Trade (CIT) meeting in Québec City marked the seventh gathering of 2025, demonstrating an unprecedented level of collaboration and urgency.

Chaired by Minister Caitlin Cleveland of the Northwest Territories, today’s meeting provided Ministers with an opportunity to review and advance progress on the recommendations endorsed by First Ministers in February 2025.

Notable achievements include*:

• Together Parties have removed 30 per cent of remaining Party Specific Exceptions (PSEs) from the Canadian Free Trade Agreement (CFTA).
• Parties have concluded financial services negotiations and have reached an agreement in-principle. Entry into force of the chapter is expected by the end of fall 2025.
• Parties are working to quickly expand the Mutual Recognition Pilot Project in the trucking sector in collaboration with Ministers of Transport and to have an agreement by fall 2025. A Trucking Hackathon will be held on July 15-16 in Toronto, bringing together experts from across Canada to identify new ways to reduce costly transportation barriers by aligning regulations in the trucking sector.
• Parties reached a consensus that will allow them to meet the direction of First Ministers to implement a Mutual Recognition Agreement focused on regulatory measures governing the sale of goods, except food. First Ministers have given a deadline of December 2025.
• All provinces and territories have committed to a 30-day service standard for processing labour mobility applications, and efforts are underway to implement a digital verification solution for tradespersons. In addition, several jurisdictions have already passed legislation to streamline labour mobility processes.
• Ten jurisdictions have agreed to a Memorandum of Understanding (MOU) committing to advance Direct-to-Consumer (DTC) alcohol sales to support consumers being able to order their favourite Canadian wine, spirit, beer or other alcoholic beverage directly from the producer, for personal consumption. Parties will now work towards finalizing more detailed operating agreements, or implementing their own frameworks, required to implement DTC alcohol sales by May 2026.

Ministers also discussed the significant efforts of many jurisdictions to improve internal trade through legislation and MOUs.

While progress has been significant, Ministers remain committed to continued momentum and deeper integration of Canada’s internal market. The next CIT meeting will take place virtually ahead of an in-person meeting in Yellowknife this November.

*Detailed information is included in the Backgrounder.

BACKGROUNDER

DETAILED INFORMATION ON CIT PROGRESS SINCE JANUARY 2025

1. Enhancing the commitments under the CFTA by (a) conducting a rapid review of all Party-specific exceptions (PSEs) and (b) concluding the negotiations to incorporate a Financial Services Chapter into the Agreement.
   1. All Parties have completed their initial review of PSEs, and together have removed 30 per cent of remaining PSEs from the CFTA, making it easier for Canadian businesses to operate across the country. This is in addition to previously removed exceptions by Parties in recent years and will be an ongoing review.
   2. Parties have concluded financial services negotiations and have reached an agreement in-principle. The future financial services Chapter will improve predictability and transparency in financial services regulations across Canadian jurisdictions, promoting a level playing field and access to new markets that will make it simpler for financial services suppliers to offer services nationwide.

2. Prioritizing mutual recognition of priority goods or sectors to reduce regulatory and administrative burden, including having all governments join the Mutual Recognition Pilot Project in the trucking sector.
   1. CIT is working in collaboration with Ministers of Transport to rapidly expand the Mutual Recognition Project in the trucking sector – as directed by First Ministers on June 2, 2025. Transport Canada will be hosting a Trucking Hackathon with all provinces and territories in Toronto next week to accelerate this work and engage with industry. All Parties are working towards having an agreement by fall 2025 to make it faster and cheaper to transport goods across the country, while ensuring safety.
   2. Parties reached a consensus that will allow them to meet the direction of First Ministers to implement a Mutual Recognition Agreement focused on regulatory measures governing the sale of goods, except food. First Ministers have given a deadline of December 2025.

3. Working with the Forum of Labour Market Ministers (FLMM) to further facilitate labour mobility.
   1. First Ministers and the CIT recognized the progress made on implementing the FLMM Action Plan on labour mobility, which sets out comprehensive actions aimed at further facilitating labour mobility across Canada, for workers in regulated occupations, including the skilled trades. CIT encourages continued rapid implementation of key measures that include:
      1. Improving predictability and clarity for certified workers through a 30-day service standard and standardized list of required documents;
      2. Supporting Canada-wide consistency on labour mobility through amendments to the CFTA;
      3. Developing tools for faster verification for tradespeople; and
      4. Reviewing the 13 occupations with legitimate objectives to ensure they are still required and aligned with public protection objectives.

4. Other sectoral priorities, including that (a) willing jurisdictions advance a Direct-to-Consumer (DTC) sales system for alcohol, and (b) that an enhanced domestic Team Canada trade promotion approach is explored.
   1. Ten jurisdictions have agreed to a Memorandum of Understanding (MOU) committing to advance DTC alcohol sales. This will support more consumers being able to order their favourite Canadian wine, spirit, beer or other alcoholic beverage directly from the producer, for personal consumption. The MOU has a wide scope including all alcohol products, unless otherwise specified, and sets an ambitious timeline for implementation. Parties will now work towards finalizing more detailed operating agreements, or implementing their own frameworks, required to implement DTC alcohol sales by May 2026.
   2. Parties have explored options for an enhanced Team Canada approach to domestic trade promotion, recognizing the potential to support greater collaboration across jurisdictions. Manitoba and Ontario have also introduced “Buy Canada Days” to promote Canadian-produced goods and services, fostering greater consumer awareness for such products across the country.