Ontario Signs Agreements to Unlock Free Trade with Alberta and Prince Edward Island
June 3, 2025
Agreements now in place with six provinces will grow Ontario’s economy by removing internal trade barriers
Premier Doug Ford was joined by Alberta Premier Danielle Smith and Prince Edward Island Premier Rob Lantz to sign Memorandums of Understanding (MOUs) that will help grow all three provincial economies by advancing efforts to knock down barriers to trade across Canada.
“With President Trump threatening our economy, there’s never been a more important time to boost internal trade and cooperation between provinces,” said Premier Ford. “By signing these agreements and working together, we’re helping Canada unlock up to $200 billion in economic potential and standing shoulder to shoulder to protect the future of Canadian workers across the country, not just in Ontario.”
Through these signings, premiers are demonstrating leadership by recognizing the importance of eliminating barriers to free trade between provinces and territories. To further break down trade barriers, the Ontario government recently introduced the Protect Ontario Through Free Trade Within Canada Act to boost opportunities for more cross-Canada commerce, help Ontario and Canada withstand the impact of U.S. tariffs and any other challenges that may come.
With this new legislation and a growing number of signed memorandums, Ontario is leading the country in expanding the trade of goods and services across Canadian jurisdictions, cutting unnecessary red tape holding back Canadian businesses and opening new pathways for the movement of qualified, in-demand workers throughout the country. Ontario was the first and so far only province or territory in Canada to eliminate all party-specific exceptions under the Canadian Free Trade Agreement.
“Together, Alberta and Ontario are taking a big step toward a more open, competitive and united economy,” said Premier Smith. “This agreement is about getting results, making it easier for people to work, do business and grow across provincial lines. It’s time to stop letting outdated rules hold us back and show Canadians what real economic leadership looks like.”
“Prince Edward Island may be Canada’s smallest province, but we’re punching well above our weight,” said Premier Lantz. “With our reciprocal Interprovincial Trade and Mobility Act, we’re not just keeping pace — we’re setting the standard and securing our future. Prince Edward Island has unified this nation before and by eliminating unnecessary trade barriers and streamlining labour mobility, we’re fostering a more unified and competitive national economy. Our collaboration with Ontario underscores our commitment to one Canadian economy. Together, we’re proving that when provinces work in concert, the entire nation thrives.”
Two-way trade in goods and services between Ontario and other provinces and territories was worth over $326 billion in 2023. The Ontario government will continue to work with its federal, provincial and territorial partners through the Canadian Free Trade Agreement and other trade-enhancing initiatives to advance interprovincial trade across Canada.
Quick Facts
- The total value of annual interprovincial trade between Ontario and today’s MOU signatories for 2021 (the most recent year for which figures are available) was $62.4 billion (Alberta) and $1.8 billion (Prince Edward Island).
- In 2023, Ontario exported $183.9 billion of goods and services to other provinces and territories and imported $142.7 billion, resulting in two-way trade of $326.6 billion and a trade surplus of $41.2 billion.
- Ontario is launching the new $50 million Ontario Together Trade Fund to assist local businesses in taking advantage of new interprovincial trade opportunities.
- Thirty-five per cent of Canada’s overall trade takes place within its own borders.
Quotes
“At a time of unprecedented global economic uncertainty, it has never been more important for provinces and territories to tear down the internal trade barriers that are holding our economy back. Today’s agreements between Ontario, Alberta and Prince Edward Island move Canada one step closer to ensuring true free trade and labour mobility exists within our own borders.”
– Vic Fedeli
Ontario Minister of Economic Development, Job Creation and Trade
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