Ottawa removing half of federal internal trade barriers: source

Internal Trade Minister Anita Anand informed the provinces Friday that Ottawa will remove more than half of federal internal trade barriers in a move to make Canada less reliant on the United States, according to a senior federal government source.

Anand made the announcement at an informal, virtual meeting of the Committee on Internal Trade, which is responsible for implementing the Canada Free Trade Agreement (CFTA).

The federal government is removing more than half of the 39 remaining CFTA exceptions to encourage more trade within Canada, according to the source.

CBC News is not identifying the source because they were not authorized to speak publicly. 

The move comes a little more than a week before Canada could be hit with punishing tariffs from its largest trading partner. 

Anand has said previously that the U.S. President Donald Trump's threats have brought a new sense of urgency to knock down Canada's internal trade barriers as never before.  

The Canadian Chamber of Commerce called the announcement encouraging news, but noted that exceptions to the CFTA aren't the only barriers to trade within Canada.

"Now is the time for provinces to push forward on broad mutual recognition, streamlining the regulations and standards that make the cross-country flow of workers and goods needlessly difficult," said Randall Zalazar, director of government relations at the Canadian Chamber of Commerce.

"In the face of tariffs and serious trade disruptions, capitalizing on the benefits of internal trade is too important to miss out on."

Removing all internal trade protections could lower prices by up to 15 per cent, boost productivity by up to seven per cent and add up to $200 billion to the domestic economy, she said. 

"We are at a pivotal moment in the history of our country and in the future of the Canadian economy," Anand said earlier this month. 

"The momentum is palpable. The moment is here and we are seizing the moment."

Last July, Intergovernmental Affairs Minister Dominic LeBlanc announced the removal of 17 federal exceptions from the CFTA related to federal procurement. Today's announcement is expected to tackle more than half of the remaining 39 exceptions.

The source did not disclose exactly how many exceptions are being wiped and which ones they are.