Provincial Trade Report

We provide clear, fact-based, and accessible analysis of interprovincial trade in Canada. Our goal is to move past platitudes and deliver real insights—sector by sector, region by region—about what internal trade reform could mean for Canadian businesses, workers, and consumers.

Wholesale and Manufacturing Lead in Interprovincial Trade

Wholesale trade and manufacturing top the list of Canadian industries most active in interprovincial trade, with transportation costs as their biggest obstacle.

Importance: Canada’s Internal Trade Engine

This matters because these industries drive the bulk of Canada’s interprovincial trade, making them key to boosting economic growth, reducing internal barriers, and enhancing supply chain efficiency nationwide.

Policies targeting these sectors can yield outsized gains, particularly if they address the logistical hurdles holding them back.

By the Numbers: Interprovincial Trade Activity

📊 Data from Statistics Canada’s 2023 Survey on Interprovincial Trade (released Feb. 2025):

  • 63.9% of wholesale businesses purchased goods/services from another province
  • 61.9% of them also sold across borders
  • 56.4% of manufacturers purchased interprovincially
  • 50.8% of manufacturers made interprovincial sales
  • In contrast, only 41.0% of all businesses made interprovincial purchases
  • Just 26.9% of all businesses made interprovincial sales

📦 Top Barrier: Transportation costs — the most cited obstacle among businesses trading interprovincially

💰 Economic Upside: Breaking trade barriers could add $161B–$250B annually to Canada’s economy

The Big Picture: Internal Trade Gaps

The findings confirm that wholesale and manufacturing are the lifeblood of Canada’s interprovincial trade.

While regulatory differences often dominate the conversation, the physical movement of goods — and the costs tied to it — emerge as critical choke points.

  • Transportation infrastructure is as important as regulatory harmonization
  • Streamlining logistics would benefit sectors already actively trading
  • Canada’s national competitiveness hinges on unblocking these friction points

Explore more insights in the full Provincial Trade Report.

Suggestions: What Should Happen Next?

✅ Invest in trade corridors: Fund transportation projects that reduce costs for goods crossing provincial lines.

✅ Target active industries: Direct interprovincial trade policy reforms at sectors with the highest cross-border volumes — wholesale and manufacturing.

✅ Incentivize logistics innovation: Support digital solutions and partnerships that cut freight inefficiencies and modernize supply chains.

Sources

  1. Statistics Canada. Canadian Survey on Interprovincial Trade, 2023 (Feb 2025 release)
  2. Statistics Canada. Survey Data on Trade Barriers
  3. First Ministers’ Statement on Eliminating Internal trade Barriers in
  4. C.D. Howe Institute. Economic Impact of Interprovincial Trade Reform