Borders, Barriers And Benefits: Inter-Canadian Investment Protections

The concept of free trade has taken on increased relevance in recent weeks for Canadian businesses and consumers. To counteract potential international tariffs connected to the flow of goods into and out of the American market, many businesses are considering ways to expand their reach within the Canadian market. In this context, free trade holds interprovincial relevance due to Canada's decentralized federal system.

Although the Canadian Constitution Act, 1867 requires the goods of each province to "be admitted free" into other provinces, this has been narrowly interpreted to only prohibit tariffs or tariff-like measures while still permitting regulation that has incidental effect on interprovincial trade. As a result, a significant amount of interprovincial regulation, such as safety or labour regulation, restricts the free movement of goods and services across provincial borders.