Also called ALEC, internal trade, interprovincial trade
What is the Canadian Free Trade Agreement?
The agreement between the provinces meant to let goods, services and workers move freely within Canada.
What else it is called
- Other names
- ALEC, internal trade, interprovincial trade
- In French
- Accord de libre-échange canadien
Related entries
Understanding canadian Free Trade Agreement
An agreement among the federal, provincial and territorial governments intended to remove barriers to trade inside Canada. It matters because those barriers are substantial and surprise people: differing technical standards, separate certification and licensing regimes, provincial procurement preferences and transport rules can make another province a harder market than a foreign one.
For a manufacturer the most usable part is procurement. The agreement opens provincial and many municipal and institutional contracts above set thresholds to suppliers from any province, which is a concrete market for a plant that has only ever sold locally.
Its limits are equally real. Every government attached exceptions, regulatory reconciliation moves slowly, and occupational certification is handled largely through the Red Seal rather than through this agreement. Governments have returned to internal trade repeatedly as a growth measure, so the detail changes and is worth checking rather than assuming.
In practice
If you have never bid a contract in a neighbouring province because you assumed it was closed to you, the procurement chapter is the thing to read.
Frequently asked
Does this mean our product is automatically accepted in every province?
No. Technical standards, certification and licensing still vary, and exceptions are listed by each government. The agreement commits them to reducing those differences rather than eliminating them, so check the requirements in the province you are selling into.