Ottawa removes more trade exceptions amid looming U.S. tariffs

In a move to ease the impact of potential U.S. tariffs, the federal government is eliminating 20 more exceptions under the Canadian Free Trade Agreement (CFTA), reducing its total from 39 to 19, Transport and Internal Trade Minister Anita Anand has announced.

Most of the removed exceptions relate to government procurement, allowing Canadian businesses greater access to compete across the country. The move follows a similar decision in July 2024, when Ottawa eliminated or narrowed 17 exceptions under the agreement. Since the CFTA’s launch in 2017, the government has removed 64 per cent of its exceptions.

The decision comes amid concerns over potential U.S. tariffs, with the government saying freer internal trade could add up to $200 billion to the economy by reducing business costs and increasing productivity.

“One of Canada’s strongest trading partners is… Canada,” Anand said. “The removal of these federal exceptions from the CFTA is yet another step towards eliminating barriers to internal trade, reducing costs for Canadian businesses, increasing productivity and foreign investment and adding billions to the Canadian economy.”

Ottawa is encouraging provinces and territories to follow suit by reducing their own CFTA exceptions.