Canada Removes All Federal Exceptions in Internal Free Trade Pact

The Canadian federal government has removed all 53 remaining federal exceptions under the Canadian Free Trade Agreement (CFTA), a move aimed at eliminating barriers to interprovincial trade and fostering a unified Canadian economy. Internal Trade Minister Chrystia Freeland announced this milestone on June 30, 2025, aligning with Prime Minister Mark Carney's vision to create "one Canadian economy out of 13" and fulfilling a Canada Day deadline. Key sectors impacted include financial services, commercial land development, transportation, and space projects, with the exceptions primarily related to federal procurement rules that had given preferential treatment. This action follows the passage of Bill C-5, the One Canadian Economy Act, which codifies the elimination of federal trade and labor restrictions and expedites national projects. While federal barriers have been removed, several provincial exemptions remain under review, with provinces expected to announce progress at a Committee on Internal Trade meeting on July 8. The government emphasizes collaboration with provinces and territories to strengthen the CFTA, promote mutual recognition, and ensure seamless labor mobility, all amid efforts to reduce reliance on U.S. trade amid ongoing tensions.