The Liberal government’s scheme to reduce interprovincial trade barriers is not worth the paper it’s written on and will likely fail if deeper problems are left undressed, said lawyer Arnold Schwisberg, who has experience taking the issue to the Supreme Court of Canada.
Internal Trade Minister Anita Anand recently announced that Ottawa reached a deal with most provinces to take “unprecedented action” in reducing internal trade barriers in Canada’s alcohol sector.
The move is part of the federal government’s response to U.S. tariffs by halving internal trade barriers to boost economic growth by $200 billion.
Every province–except Prince Edward Island and Newfoundland and Labrador–has agreed to remove restrictions preventing Canadian alcohol from being sold across provincial borders.
Anand expects the agreement to be finalized within weeks, however, those with experience trying to tear down interprovincial alcohol restrictions have their doubts.
Schwisberg, who represented Gerard Comeau in the landmark “Free the Beer” case, is among those who remain skeptical. In an interview with True North, Schwisberg criticized the deal, saying it fails to address the fundamental issues preventing true free trade of alcohol.
“The problem isn’t just about removing a few barriers on paper,” Schwisberg said. “Each province has different costs of goods sold, different markup structures, and different taxes. You can’t just wave a magic wand and have free trade without equalizing these costs. Otherwise, you’re just shifting the problem elsewhere.”
Schwisberg argued that Anand’s promise of resolving interprovincial trade in alcohol within 30 days is unrealistic.
“It’s a joke, it ignores the reality of the liquor control systems that have been in place for nearly a century. Provinces rely on these revenues, and they won’t easily give up control without a comprehensive restructuring.”
He further explained that the truly free trade of alcohol would require provinces to align their tax and pricing structures.
“If you really want free trade in liquor, you have to harmonize the way provinces tax alcohol, the way they regulate it, and how distribution works. Otherwise, one province’s product will always be more expensive or at a disadvantage compared to another’s. That’s why these barriers exist in the first place,” Schiwsberg told True North.
Schwisberg also noted that trade barriers on alcohol persist due to provincial monopolies, which benefit from restricting competition.
“The liquor boards don’t want to lose their grip. They make billions from these markups, and this deal does nothing to challenge that. Until there’s a fundamental shift in how alcohol is controlled and sold in Canada, this so-called free trade is just political posturing,” he said.
The lawyer pointed out that a true solution would require deeper reform: “If the federal government is serious about this, they should be looking at a national liquor distribution framework or tax equalization between provinces. Anything less is just tinkering around the edges.”
Despite these concerns, Anand remains confident that the deal will make a significant impact. “Buying B.C. wine in Ottawa is going to become a reality because we are going to see trade barriers come down in Canada,” she insisted.
The federal government is also working on broader internal trade reforms, including a Canada-wide credential recognition system for professionals.
By June 1, the federal, provincial, and territorial governments plan to implement measures that would allow certified professionals to work anywhere in Canada without additional barriers.
Quebec is expected to adopt the policy differently due to French language considerations.
Alongside these changes, provincial governments are reviewing their remaining exceptions under the Canada Free Trade Agreement, aiming to reduce red tape on goods and services—though food remains excluded from the current negotiations.
For Schwisberg, these efforts are a step in the right direction but still fall short of addressing the deeper issues.
“Without real structural reform, this won’t be true free trade, it’s just a press release with a nice headline,” he told True North.