CFIB Report Finds Internal Trade Progress Has Yet to Reach Businesses
Governments across Canada have made notable strides in advancing internal trade, but many small businesses say those efforts have yet to improve their everyday operations, according to the 2026 State of Internal Trade: Interprovincial Cooperation Report Card released by the Canadian Federation of Independent Business (CFIB).
The latest report highlights stronger government performance, with the federal government receiving an A+ and 10 jurisdictions earning an A grade. Much of the progress stems from broader adoption of mutual recognition legislation, including a pan-Canadian agreement that allows goods approved in one province to be sold in another without facing additional regulatory requirements.
Despite these achievements, CFIB says the improvements have not yet translated into meaningful benefits for many businesses or agri-businesses.
Nearly 69% of small business owners reported no noticeable improvement in operating across provincial borders during the past year, while 16% said doing business has become even more difficult.
Ongoing challenges include inconsistent regulations, certification requirements, administrative delays, and rising compliance costs. In addition, 57% of business owners remain unfamiliar with the recent reforms.
In agriculture these include:
- Different provincial regulations, licensing requirements, transportation rules, inspection systems and product standards can make it difficult or costly for farmers and food processors to sell products across provincial borders.
Meat processing rules that historically limited the interprovincial movement of provincially inspected meat.
Varying trucking regulations and weight limits.
Different licensing and certification requirements for agricultural inputs and services.
- Agricultural businesses operating in multiple provinces often face duplicate paperwork, permits and compliance requirements.
- One major issue has been meat processing. In some regions, producers may have access to a provincially licensed slaughter facility nearby but cannot easily market that meat in another province. This has reduced flexibility and increased transportation costs for livestock producers. Recognizing this challenge, the CFIA announced proposed measures in July 2026 to make it easier for some provincially inspected meat products to move between provinces while maintaining food safety standards. (Read the article: CFIA Proposes Changes to Expand Interprovincial Meat Movement)
Removing some of the identified barriers would have a positive impact on the following agriculture industries:
- Livestock producers
- Meat processors
- Dairy sector
- Fruit and vegetable growers
“It’s encouraging to see governments achieving high grades and making further commitments to improve internal trade,” said Keyli Loeppky, CFIB’s senior director of interprovincial affairs.
“But small businesses are still dealing with inconsistent rules, extra paperwork, and higher costs. Until announcements turn into barriers coming down in a meaningful way, progress on paper won’t translate into results for small businesses.”
The report identifies tax complexity, licensing requirements, regulatory differences, transportation challenges, and restrictions on moving food and alcohol products between provinces as key barriers that continue to limit business growth and consumer choice.
Looking ahead, CFIB plans to revise its report card methodology for 2027 to better measure the real-world impact of internal trade reforms.
“Internal trade progress has moved more in the last two years than in the last decade, and our methodology needs to keep pace,” said Loeppky.
“We want to make sure we’re measuring what matters most to small businesses and highlighting where governments are making a real difference. We anticipate 2027 grades to be much lower than this year if governments don’t take implementation of agreements and MOUs seriously.”
CFIB is urging governments to accelerate implementation, expand mutual recognition, reduce trade exceptions, simplify regulations, and deliver tangible improvements that help businesses operate more efficiently across Canada.