CFIB Awards Canada A-Plus for Internal Trade Progress

The Canadian Federation of Independent Business (CFIB) awarded the Government of Canada an A-plus grade in its 2026 State of Internal Trade report, upgrading the federal government from a C in 2025. The top mark follows the passage of the One Canadian Economy Act and the Free Trade and Labour Mobility in Canada Act, alongside the removal of all federal exceptions in the Canadian Free Trade Agreement. Other key achievements include the November 2025 Canada Mutual Recognition Agreement on the Sale of Goods and the creation of the Domestic Trade Commissioners Network.

While eight of ten provinces also received high marks, Nunavut earned a C-minus and Newfoundland and Labrador remained ungraded. Government officials stated that removing these internal barriers could boost Canada's GDP by up to $210 billion. The federal government is now targeting further improvements in the agrifood, housing, and construction sectors, while urging provinces to implement agreements on trucking and direct-to-consumer alcohol sales.

Despite the legislative progress, the CFIB warns that a gap remains between policy and practice. The report notes that 70 percent of small businesses have seen no improvement in cross-border commerce, and 17 percent report that trading goods has become more difficult. CFIB officials attribute these ongoing barriers to protectionism and economic anxiety following tariffs imposed by U.S. President Donald Trump. The federation is calling for the mutual recognition pact to expand to services and labor, and urging the federal government to use transfer payments or subsidies to penalize provinces that fail to reduce trade barriers.