Business
Removing barriers to trade between Alberta and the rest of Canada could grow our economy by $72.1 billion, says the MEI
If Alberta were to adopt a mutual recognition act with the rest of the country, similar to Nova Scotia’s, Canada’s economy would stand to grow significantly, according to a new Economic Note published by the Montreal Economic Institute.
“The growing momentum to eliminate internal barriers to trade in Canada is promising,” says the publication’s author, Trevor Tombe, professor of economics at the University of Calgary and senior fellow at the MEI. “If Alberta were to join the growing interprovincial free trade zone started by Nova Scotia, both it and Canada would be much more prosperous.”
Different regulations, certifications and testing requirements between provinces add costs, complexity and frustration to the process of selling goods and services across provincial boundaries. These many rules are commonly referred to as “interprovincial trade barriers.” Following U.S. President Donald Trump’s tariff threats, governments across Canada have identified the reduction of these barriers as a way to make the country’s economy more resilient.
Nova Scotia Premier Tim Houston was the first to recommend a model of mutual recognition of standards (without further testing or fees) and accelerated licensure of professional credentials with provinces that reciprocate. This would essentially render moot the vast majority of barriers
to interprovincial trade with provinces that adopt similar legislation. On March 26, 2025, Nova Scotia’s Free Trade and Mobility Within Canada Act received royal assent, becoming law in the province.
“The main benefit of mutual recognition policies is that they bypass the regulatory gridlock that has long plagued interprovincial trade discussions,” said Dr. Tombe. “It’s a trade first, harmonize later approach that allows Canadian consumers and businesses to begin to reap the benefits of these agreements without delay.”
Since then, Premiers Doug Ford and Rob Lantz, of Ontario and Prince Edward Island respectively, have tabled similar bills in their provinces.
So far, the Acts adopted and mutual recognition agreements signed are leading the way to internal free trade zones with the potential to boost the country’s economy substantially. The gains from free trade between Ontario and Nova Scotia alone, for example, could boost the Canadian economy by nearly $4.1 billion.
If Alberta were to adopt a similar bill to those of Nova Scotia, Ontario and Prince Edward Island, or sign mutual recognition agreements with all Canadian provinces, the country’s economy could grow by an estimated $72.1 billion.
Of particular interest, the signing of an agreement between Alberta and British Columbia alone would boost Canada’s GDP by an estimated $25.7 billion.
“Premier Danielle Smith should follow Nova Scotia Premier Tim Houston’s approach and adopt mutual recognition laws with the rest of the country,” said Dr. Tombe. “It’s one of the surest and lowest-cost ways for provincial governments to unleash Canadian productivity growth.”
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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.
MxM News
Quick Hit:
SpaceX, under the leadership of billionaire Elon Musk, is expected to generate $15.5 billion in revenue this year, a landmark figure that reflects the private aerospace firm’s unmatched ascent in the commercial space industry. That revenue estimate eclipses NASA’s projected 2026 commercial space budget of $1.1 billion, emphasizing SpaceX’s increasing dominance over government-funded initiatives. The company’s growth is powered in large part by its satellite internet arm, Starlink, which Musk says has reached breakeven cashflow and is slated for a future IPO.
Key Details:
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Elon Musk said Tuesday that SpaceX will record $15.5 billion in revenue in 2025.
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That figure exceeds NASA’s projected commercial space budget for next year.
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Starlink, which provides global broadband via satellite, is credited with driving SpaceX’s financial success.
Diving Deeper:
SpaceX’s 2025 revenue projection marks a dramatic inflection point in the broader space race between private enterprise and government-funded agencies. With a forecasted $15.5 billion in revenue this year, Elon Musk’s rocket company is not only outpacing competitors but also outstripping NASA’s commercial budget by more than 14 times.
Much of the firm’s meteoric rise is attributed to Starlink, its ambitious satellite-based internet network. Musk revealed in late 2023 that Starlink had reached breakeven cashflow, a critical milestone for a system that has launched thousands of satellites into low Earth orbit with the goal of delivering global internet coverage—including to remote and underserved areas. While Musk has repeatedly teased an eventual IPO for Starlink, a timeline remains elusive.
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Quick Hit:
Reform UK has launched a DOGE-inspired audit to root out waste and overspending in councils it now controls. The party promises to save taxpayers money through aggressive forensic reviews and tech-driven accountability.
Key Details:
- Reform’s tech task force will audit spending across 10 local councils, beginning in Kent.
- The project is modeled on Elon Musk’s DOGE initiative, which Reform cites as saving $170 billion in the U.S.
- Local officials warn resistance to transparency will be treated as gross misconduct.
Diving Deeper:
Nigel Farage’s Reform UK has moved quickly to deliver on its pledge to clean up government waste by launching a sweeping audit of the 10 councils it won control of in May’s local elections. On Monday, the party deployed a team of data analysts, forensic auditors, and software engineers to begin a full investigation into spending practices—starting with the council in Kent.
The initiative is inspired by Trump’s Department of Government Efficiency, which officials say has saved American taxpayers over $170 billion. Reform’s British equivalent—also dubbed “DOGE”—will dig through financial records, contracts, audits, and whistleblower reports to identify waste and inefficiencies in local governance.
“For too long, British taxpayers have watched their money vanish into a black hole,” said Reform UK’s chairman in a statement to The Telegraph. “As promised, we have created a UK Doge to identify and cut wasteful spending of taxpayer money. Our team will use cutting-edge technology and deliver real value for voters.”
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