The invisible border problem
Canada’s internal market still operates like a patchwork of provinces. Estimates from the IMF show interprovincial barriers reduce GDP by $80–100 billion annually — roughly 3–4 % of total output.
| Measure | Estimated GDP Impact | Equivalent in Jobs | Source |
|---|---|---|---|
| Interprovincial trade barriers | –3.8 % GDP | –350,000 jobs | IMF Working Paper 25/02 |
| Cross-provincial regulatory differences (agri-food) | +15 % cost per shipment | — | CFIB 2025 |
| Alcohol & transport restrictions | 60-year persistence | — | Canadian Chamber 2025 |
Why reform stalls
Constitutional jurisdiction complexity and political inertia. The Canadian Free Trade Agreement (CFTA) lacks enforcement power, leaving most harmonization voluntary.
What leaders can do
- Support enforceable national standards through industry coalitions.
- Quantify internal trade costs in financial reporting to strengthen advocacy.
- Adopt cross-border procurement strategies within Canada.
- Promote “Made-in-Canada” supply chain mapping across provinces.
Arcus Insight: The fastest GDP stimulus available to Canada requires no spending — only coordination.