Alberta Premier Danielle Smith and Ontario Premier Doug Ford signed a new memorandum of understanding to eliminate trade barriers between their provinces. Smith hailed it as a milestone for interprovincial commerce, while Ford broadened the effort by signing similar deals with several other premiers.
“Together, Alberta and Ontario are taking a big step toward a more open, competitive, and united economy,” said Smith. “This agreement is about getting results, making it easier for people to work, do business, and grow across provincial lines. It’s time to stop letting outdated rules hold us back and show Canadians what real economic leadership looks like.”
The memorandum of understanding, signed June 1 at the First Ministers’ Meeting in Saskatoon, pledges to ease the cross-border movement of skilled workers and permit direct-to-consumer alcohol sales between Alberta and Ontario. The agreement also opens the door for Ontario to potentially join the New West Partnership Trade Agreement, which currently includes Alberta, British Columbia, Saskatchewan and Manitoba.
“We’re making it easier for skilled professionals to work across our provincial borders while also allowing direct-to-consumer sales of Ontario-made and Alberta-made alcohol between both provinces,” Smith posted to X following the signing.
Ford, however, expanded the scope of interprovincial cooperation by signing agreements not just with Alberta, but also with Saskatchewan and Prince Edward Island. Ontario has now signed trade agreements with six provinces in total, more than any other jurisdiction.
“With President Trump threatening our economy, there’s never been a more important time to boost internal trade and cooperation between provinces,” said Ford. “By agreements like this and working together, we’re helping Canada unlock up to $200 billion in economic potential and standing shoulder to shoulder to protect the future of Canadian workers across the country, not just in Ontario.”
Ontario’s government framed the agreements as a key part of its strategy to build economic resilience in the face of growing U.S. protectionism. The province has also introduced legislation — the Protect Ontario Through Free Trade Within Canada Act — to eliminate trade barriers and encourage labour mobility.
“At a time of unprecedented global economic uncertainty, it has never been more important for provinces and territories to tear down the internal trade barriers that are holding our economy back,” said Ontario’s Minister of Economic Development, Job Creation and Trade, Vic Fedeli. “Today’s agreements between Ontario, Alberta and Prince Edward Island move Canada one step closer to ensuring true free trade and labour mobility exists within our own borders.”
Ontario remains the only province to have eliminated all of its party-specific exceptions under the Canada Free Trade Agreement. Alberta has also removed most of its exceptions and continues to champion interprovincial trade reforms.
Two-way trade between Alberta and Ontario was worth $62.4 billion in 2021, while Ontario’s total interprovincial trade reached $326.6 billion in 2023.
“It’s just the latest steps we’re taking to build a stronger, more competitive Canadian economy that can outlast President Trump’s tariffs and whatever else comes our way,” Ford said in a post to X.