Mayors of Ottawa and Gatineau call for reduction of interprovincial trade barriers to boost the economy

The mayors of Ottawa and Gatineau shared a united message with the federal government, calling for easier interprovincial trade. CTV’s Natalie van Rooy reports.

The mayors of Ottawa and Gatineau are calling on the federal and provincial governments to eliminate interprovincial trade barriers to boost economic growth in the national capital region and address the ongoing threat of U.S. tariffs.

Ottawa Mayor Mark Sutcliffe and Gatineau Mayor Maude Marquis-Bissonnette issued a joint statement on interprovincial barriers ahead of the Big City Mayors’ Caucus meeting in Ottawa.

“We are calling for a review of these trade barriers to facilitate economic activity and enhance the horizontal integration of our economies,” the mayors said.

“Reducing these tariffs would improve the flow of goods and services, bolster the competitiveness of our businesses, and lessen our reliance on external markets. We will formally submit this request to the other levels of government through this joint statement.”

Interprovincial trade barriers range from differing health and safety regulations and inspection obligations to the basics of what ingredients a product needs to meet each province’s definition of a product.

According to the Committee on Internal Trade, more than $530 billion worth of goods and services moved across provincial and territorial borders last year. The committee said in January that eliminating interprovincial barriers could add as much as $200 billion to the Canadian economy, lower prices and expand productivity.

The federal government has been in talks with the provinces to bring down trade barriers in Canada within 30 days.

“The provinces and territories are at the table with enthusiasm in a way that has not occurred over the past number of decades,” Anita Anand, Transport Minister and Minister of Internal Trade, said Wednesday.

Anand added, “you’re going to see these barriers coming down and there is no need for legislation for that to happen.”

Sutcliffe and Marquis-Bissonnette say while Ottawa and Gatineau are in two different provinces, there is an opportunity to boost the economy through eliminating trade barriers and interprovincial tariffs.

“In light of the emerging tariff threat, we believe this moment presents an opportunity to better leverage the economic potential of our region. For businesses on both sides of the Ottawa River, this situation could serve as a catalyst for stronger collaboration, fostering a resilient and robust local economy,” the mayors said.

“We acknowledge that certain interprovincial tariffs may still serve a valid purpose, whether to protect local producers or safeguard the French language. In some cases, maintaining them may remain necessary. However, given the current global context, we believe it is essential to reassess the justification for interprovincial tariffs.”

The Federation of Canadian Municipalities (FCM) announced Thursday representatives of the federation will travel with Premier Doug Ford to Washington next week to discuss the threat of U.S. tariffs. Officials will also meet with representatives of the U.S. Conference of Mayors in February and the National League of Cities, to focus on “minimizing the impact of tariffs on local economies and strengthening cross-border cooperation.”

The federation warns the possibility of U.S. tariffs threaten municipalities in Canada and the United States.

“Municipalities are the backbone of Canada’s economy — driving growth, productivity, and employment,” FCM President Rebecca Bligh said in a statement. “As key members of Team Canada, we are stepping up to protect local businesses and workers from the impacts of these tariffs. FCM will bring the voices of local leaders directly to Washington to ensure our communities are heard and defended.”

Bligh says the Federation of Canadian Municipalities should be involved in all discussions involving tariffs and supports for businesses.

On Tuesday, Ottawa’s finance and corporate services committee passed a motion to focus city spending on buying local and Canadian products. The motion calls on staff to ensure Ottawa’s procurement bylaws are “sufficiently flexible to support the purchase of local, Canadian and non-American goods and services, whenever possible.”

City staff estimate 92 per cent of the goods and services purchased by the City of Ottawa are from local vendors.

The mayors will push the Big City Mayors to address interprovincial trade barriers to boost the Canadian economy.

“We strongly believe that we must work together, from coast to coast, to ensure that interprovincial trade is smoother and less restrictive than international trade,” the statement says.

“As leaders in our communities, we remain committed to collaborating with our government partners to find thoughtful and balanced solutions that respect provincial specificities—particularly in matters of language, local procurement, and security—while creating conditions that support the competitiveness and the success of our businesses.”

In a post on social media, Sutcliffe said he met with the leaders of local business organizations Wednesday night, including the Ottawa Board of Trade and Invest Ottawa.

“We agreed to continue working together to address economic uncertainty in Ottawa arising from the threat of tariffs and government job cuts,” Sutcliffe said.

“We will be developing strategies to support the local economy and will share more details in the days ahead.”

Small businesses calling for years for looser restrictions

At Pub Italia in Ottawa’s Little Italy, owner Joe Cotroneo has been calling for the removal of interprovincial barriers on alcohol for years.

“My biggest complaint going back in time was hey here we have all these tariffs,” said Cotroneo. “I’m a businessperson and I want to expand my business. I have over 200 beers on my list, but I’d make it 400 if I can deal with all the other microbreweries in Canada, but I can’t.”

Cotroneo has written to multiple levels of government, trying to get that message across.

“I’ve been writing these letters to just about every finance minister federally, provincially and every premier of Ontario since the Dalton McGuinty days, which goes back to 2012,” he said.

Cotroneo says he is forced to stick with only alcohol offered at the LCBO, which can be challenging if there is an item that is out of stock or if he wants to support a business in another province, like a winery in Kelowna, B.C.

With files from CTV News’ National Digital Producer Charlie Buckley and CTV News Ottawa’s Natalie van Rooy.