CHARLEBOIS: Nova Scotia smashes food trade barriers, will the rest of Canada follow?

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The federal government can talk endlessly about eliminating interprovincial trade barriers, but ultimately, it is up to the provinces to take real action. Canada now has a clear front-runner in this effort: Nova Scotia.

Premier Tim Houston and his government have recognized the steep cost that interprovincial trade barriers have imposed on their province and the Atlantic region. Being geographically distant from major markets has already put Nova Scotia at a disadvantage, making it difficult to compete against larger provinces unless a sector has developed a unique competitive edge — such as the province’s thriving wine industry. However, with trade barriers limiting access to larger provincial markets, growth in the food sector has been stifled.

Now, Nova Scotia is raising the stakes. Bill 36, the Free Trade and Mobility within Canada Act, is a significant step forward in eliminating these internal trade obstacles. The legislation ensures that goods manufactured or produced in another province or territory that comply with that jurisdiction’s regulatory standards will not be subjected to additional fees or testing by Nova Scotia.

Houston put it succinctly: “If it’s good enough for another province, it’ll be good enough for Nova Scotia because I trust other provinces and territories to have appropriate requirements that keep their citizens safe.”

But this commitment to trade liberalization must be a two-way street. Other provinces — and the federal government — need to follow suit. It’s called mutual recognition, and it should become the standard nationwide.

For the food industry, this means that any provincially licensed facility across the country can provide ingredients and products to Nova Scotia’s food manufacturers, restaurants and retailers — so long as their home province reciprocates and accepts Nova Scotia-made products. This shift would enhance consumer choice, drive competition, and create opportunities for small businesses. The result? Lower prices, more innovation, and stronger regional economies.

The Economic Toll of Protectionism

For too long, interprovincial trade barriers have prioritized protectionism over value, quality, innovation, and economic growth. These barriers were largely invisible but economically devastating, preventing smaller provinces like Nova Scotia from reaching their full potential. In theory, Canadian provinces should have the easiest trade relationships in the world — no border brokerage, no international regulatory alignments — yet internal barriers have choked opportunities for decades.

If mutual recognition were to expand across the country, many provinces stand to gain significantly, particularly Alberta, Saskatchewan and Atlantic Canada. Removing unnecessary regulatory duplication will stimulate investment and growth in key sectors, including agri-food.

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Overcoming Resistance

Of course, passing legislation like Bill 36 is the easy part. The real challenge lies in overcoming opposition from special interest groups, unions and industry lobbies that resist competition and mutual reciprocity. These groups have long benefited from protectionist measures that shield them from outside competitors. A truly open internal market would mean fewer government-mandated inefficiencies and could threaten some entrenched provincial interests.

A common argument against mutual recognition is that it could erode provincial identity — particularly when it comes to food. But identity and culture do not emerge from regulation; they thrive on innovation and passion. The belief that strict provincial regulations are necessary to preserve distinctiveness is misguided. True uniqueness in food and agriculture is not built through bureaucratic red tape — it is built through ingenuity and consumer trust.

What’s Next?

Nova Scotia has set the bar high. Other provinces should take note: economic protectionism is outdated, and interprovincial trade reform is long overdue.

Now, Premier Houston, perhaps it’s time for a conversation about another major trade barrier within Canada — our overpowering provincial marketing boards, particularly in the dairy sector.

— Dr. Sylvain Charlebois is the Director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast.