Facing renewed U.S. tariffs on steel and aluminium, Canadian Prime Minister Mark Carney has announced a bold strategy to safeguard and strengthen Canada’s economy—not by looking outward first, but by fixing what’s broken at home. His plan? Eliminate internal trade barriers and build a truly unified domestic market to position Canada as a more reliable trading partner for the European Union and the United Kingdom.
Currently, Canada trades more efficiently north-south—with the United States—than it does east-west within its own borders. Goods can often flow faster from Toronto to Chicago than from Toronto to Calgary. Interprovincial regulatory differences, inconsistent standards, and permitting hurdles have created costly inefficiencies across the country. This lack of internal integration has long held Canada back from maximising its trade potential with global partners.
Carney’s plan targets this imbalance head-on. By July 1st, the federal government will table legislation to allow goods to move freely across Canada without federal barriers. Harmonising provincial regulations, recognising each other’s standards, and creating a single “one-window” project approval system are central to the initiative.
Research cited by Carney suggests these reforms could reduce trade costs by up to 15% and grow the national economy by 4% to 8%. More importantly, unlocking seamless east-west trade would give Canadian exporters the scale, speed, and supply chain resilience needed to capitalise on opportunities with the EU (via CETA) and the UK post-Brexit.
With 75% of exports still headed to the U.S., Canada’s economic overdependence on its southern neighbour leaves it exposed to political shocks. As Carney looks to diversify trade relationships, improving domestic efficiency is a strategic prerequisite. A more connected, agile internal economy would make Canada more competitive on the global stage—especially in Europe, where consistency and reliability are critical for long-term trade partnerships.
In Carney’s vision, uniting Canada internally is the key to expanding it externally. If successful, this could mark a turning point not just in Canadian trade policy—but in its global economic role.
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