{"id":3022,"date":"2026-01-27T23:50:59","date_gmt":"2026-01-27T23:50:59","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=3022"},"modified":"2026-01-27T23:50:59","modified_gmt":"2026-01-27T23:50:59","slug":"canada-could-increase-real-gdp-by-7-if-it-drops-all-internal-trade-barriers-imf-national","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=3022","title":{"rendered":"Canada could increase real GDP by 7% if it drops all internal trade barriers: IMF – National"},"content":{"rendered":"

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If Canada were to fully eliminate its internal trade barriers, it could increase its real GDP by about seven per cent in the long run, the International Monetary Fund says in a new report.<\/p>\n

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The report, published Tuesday, said such a move could mean roughly $210 billion in GDP, with the IMF saying the gains per province and territory \u201creinforces the case for reform.\u201d<\/p>\n

\u201cThese frictions are economically consequential,\u201d the IMF report says.<\/p>\n

\u201cGoods, services, and workers face significant barriers when moving across provincial and territorial lines \u2014 a fragmentation that affects productivity, competitiveness, and overall resilience.\u201d<\/p>\n

The IMF notes the interprovincial trade barriers that remain in place equate to about a nine per cent tariff nationally, using \u201cwidely accepted trade analysis methods.\u201d<\/p>\n

It says the costs are mostly concentrated in services, which make up the majority of trade between provinces. But the report adds barriers in some sectors, such as health-care services and education, amount to a tariff of 40 per cent.<\/p>\n

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Provinces and territories also face \u201cuneven\u201d barriers, the report warns, with smaller provinces facing costs that are \u201cmultiples higher\u201d in sectors like health, retail trade and professional services.<\/p>\n

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\u201cThe result is a patchwork economy where geography and regulation jointly shape opportunity \u2014and where advantages that normally come with scale are muted,\u201d the report says.<\/p>\n

Interprovincial trade barriers have been a topic of discussion in the past year amid tariffs imposed by U.S. President Donald Trump since he took office in January.<\/p>\n

Some individual provinces signed various deals to drop the barriers on certain products.<\/p>\n

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In November, the provinces, territories and federal government signed an agreement to allow the trade of tens of thousands of goods to be free.<\/p>\n

The agreement, which took effect in December, applies to most products, though it excludes food, beverages, tobacco, plants and animals.<\/p>\n