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Competition Watchdog Can Flag Internal Trade Barriers

An Act to amend the Competition Act

Summary

This bill amends the Competition Act to let the Commissioner of Competition include recommendations in market or industry inquiry reports to federal or provincial institutions about internal trade barriers that unduly harm competition. Federal institutions must respond within 120 days, and the Commissioner must publish those responses. Provincial institutions may respond within 120 days, with the Commissioner publishing any response or a notice of non-response. The aim is to boost transparency and pressure institutions to reduce interprovincial barriers, strengthen competition, and enhance prosperity.

  • Empowers the Commissioner to recommend changes to Acts, regulations, rules, orders, and by-laws that restrict internal trade.
  • Requires the Commissioner to send the report to the head of the relevant institution.
  • Mandates a 120-day public response from federal institutions; provincial responses are optional.
  • Requires publication of all responses, or a public notice if a province does not respond.
  • Applies when barriers unduly affect competition in the studied market or related Canadian markets.
  • Short title: Canadian Prosperity Act.

Builder Assessment

Vote Yes

This bill aligns with prosperity, red-tape reduction, and productivity by empowering the Competition Bureau to identify harmful internal trade barriers and forcing timely, public federal responses. Impact depends on provincial cooperation, but transparency can catalyze barrier removal without heavy bureaucracy.

  • Strengthens market transparency and accountability around internal trade barriers.
  • Encourages competition and scale economies that boost productivity and investment.
  • Minimal administrative burden relative to potential gains; provincial non-binding responses are a limitation.
  • Prioritize evidence-based criteria for “unduly affects competition” to target genuine harms while preserving safety and consumer protection.
  • Publish a light-touch public dashboard tracking recommendations, responses, and outcomes to maintain pressure with minimal overhead.
  • Focus inquiries on high-impact, non-safety barriers (e.g., alcohol distribution, trucking, building materials) to maximize consumer savings and competitiveness.

Question Period Cards

Why does the bill make provincial responses optional when most internal trade barriers are provincial, and will the government strengthen accountability so Canadians can see who is blocking internal free trade?

What resources and timelines will the government provide to the Competition Bureau to ensure market inquiries and the publication of responses occur quickly and produce measurable reductions in barriers?

What criteria will define when a barrier ‘unduly affects’ competition, and how will the bill ensure legitimate health and safety protections remain intact while eliminating protectionist or duplicative rules?

Principles Analysis

Canada should aim to be the world's most prosperous country.

Targeting and exposing internal trade barriers can lower costs, expand market access within Canada, and improve consumer welfare—key drivers of broad-based prosperity.

Promote economic freedom, ambition, and breaking from bureaucratic inertia (reduce red tape).

It shines a light on protectionist or duplicative rules and creates a timeline for federal responses, encouraging the removal of red tape without adding heavy new processes.

Drive national productivity and global competitiveness.

Reducing interprovincial frictions increases scale, competition, and resource mobility, supporting productivity and competitiveness.

Grow exports of Canadian products and resources.

Improved internal efficiency can indirectly aid exports, but the bill does not directly address export markets or trade policy.

Encourage investment, innovation, and resource development.

Clearer, less fragmented internal markets improve returns to investment and innovation by enlarging customer bases and reducing compliance costs.

Deliver better public services at lower cost (government efficiency).

A modest new response requirement is offset by potential efficiency gains from removing duplicative regulations; net impact depends on compliance and follow-through.

Reform taxes to incentivize work, risk-taking, and innovation.

No tax changes are proposed.

Focus on large-scale prosperity, not incrementalism.

Internal trade barrier reduction can deliver large economy-wide gains, though the bill’s non-binding provincial element may limit the scale of realized impact.

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PartySenate
StatusAt second reading in the Senate
Last updatedN/A
TopicsTrade and Commerce, Economics
Parliament45