Global Performance Series: Domestic Trade & Interprovincial Expansion
With evolving U.S. trade policies and growing international uncertainties, strengthening interprovincial trade and domestic supply chains has become more important than ever for Canadian businesses.
In British Columbia, our neighbours down south have long served as trade partners and as key sources of supply, enabling regional trade to thrive. Despite B.C. having a lower reliance on U.S. trade than many other provinces, the potential for deeper interprovincial engagement still exists and remains largely untapped.
These uncertain times allow us to re-examine internal trade barriers and strengthen economic ties within our borders. As we navigate shifting global dynamics, enhancing trade relations among provinces can play a pivotal role in securing Canada's long-term economic resilience.
In the third session of the Global Performance Series, World Trade Centre Vancouver hosted a panel of industry experts from BDC, Investissement Québec, the Ontario Public Service, and the Government of British Columbia. The discussion focused on overcoming regulatory barriers, optimizing logistics, and accessing funding programs to support Canadian market expansion.
This article summarizes key takeaways from the session and highlights resources available to help B.C. businesses grow within Canada.
Navigating Interprovincial Trade Barriers
B.C. is taking a leadership role in this uncertain environment by strengthening interprovincial trade, removing internal barriers, and providing tools and support for business resilience.
Government of British Columbia’s Trade Policy, Investment and Corporate Initiatives Division's Senior Manager Havind Sehmi, outlined B.C.’s proactive approach to trade barriers including:
- Trade, Investment, and Labour Mobility Agreement (TILMA): This accord between Alberta and B.C. creates Canada’s second-largest economy. Under TILMA, British Columbia and Alberta have mutually recognized or reconciled the rules that hinder the free movement of goods, services, and people.
- New West Partnership Trade Agreement. Canada’s largest, barrier-free interprovincial market includes Alberta, B.C., Manitoba and Saskatchewan.
- Item 30, as part of the Canada Free Trade Agreement, for the free movement of goods and services across Canada.
- On March 13, the B.C. government also tabled Bill 7, the Economic Stabilization Tariff Response Act. This act will give B.C. a two-year window to reduce trade barriers.
Interprovincial trade is significant. In 2021, B.C. exported $20 billion interprovincially, and ongoing collaboration to remove trade barriers, enhance free trade, and move forward initiatives that will help B.C. businesses is key to maintaining B.C.'s economic strength.
Optimizing Domestic Opportunities
Ontario and Quebec are poised as strong alternatives for B.C. businesses seeking suppliers outside the U.S. Ontario offers strategic advantages in location, infrastructure and global partnerships. Rafael Vargas highlighted key sectors driving economic growth, including clean technology, information technology, advanced manufacturing, life sciences and aerospace. He noted that Ontario's strong talent pool and diversity of sectors attract international investment.
Quebec is the second-largest market in Canada, after Ontario, with a strong export-driven economy accounting for 47% of its GDP. Annually, Quebec exports $104 billion of goods and services within Canada, specifically exporting over $8.3 billion of goods and services to B.C. Businesses can take advantage of this established trade relationship and explore Quebec as a potential alternative to sourcing from US suppliers. Gabriel Conea, introduced Investissement Québec, as a resource for Canadian businesses looking for alternatives to U.S. suppliers that can help identify procurement needs and pre-qualify Quebec suppliers. It is also noteworthy that Mr. Conea and his trade development staff are based in Vancouver.
Exploring Canada’s Economic Landscape
The impact of uncertainty regarding tariffs has slowed down the B.C. and Canadian economy, especially in sectors related to exportation, as businesses and consumers hesitate, resulting in a reduction of spending, investment and job creation. However, Pierre Cleroux highlighted that B.C. is well positioned as it is less exposed to U.S. trade than other provinces due to more diversified exports. He called attention to the points that the economy was doing well at the end of 2024, interest rates are falling, and inflation is under control. Further, many Canadians are seeking out Canadian products and this momentum amoung consumers will have a positive impact on the economy. As businesses prepare for uncertainty, they can leverage current strengths like consumer demand, low inflation and supportive policy measures.
Trade Accelerator Program (TAP)
B.C. businesses can prepare for uncertainty by actively engaging with available resources, enabling them to take advantage of trade opportunities, leverage trade agreements, and utilize interprovincial expansion to manage international risks and strengthen resilience. The Trade Accelerator Program (TAP), offered by the World Trade Centre, teaches participating businesses the step-by-step process for developing an export plan and evaluating market potential for sustainable growth. So far, TAP has supported close to 600 businesses with expansion and on average, the export revenue of TAP alumni increased by 23%, and participants forecast their export sales to grow by 47%.
The tools exist. The support is in place. The next step is action.
Stay ahead of global uncertainty. Get involved with World Trade Centre Vancouver and gain access to expert insights, resources, and upcoming webinars to help your business thrive in international markets.
Resource List: