Why Quebec won't make a bilateral trade deal with Ontario | Unpublished
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Source Feed: National Post
Author: Catherine Lévesque
Publication Date: July 28, 2025 - 16:30

Why Quebec won't make a bilateral trade deal with Ontario

July 28, 2025

OTTAWA — When Ontario Premier Doug Ford and Quebec Premier François Legault faced reporters last week, some grinning and nervous laughter ensued when both men were asked why their two provinces could not come to a bilateral agreement on internal trade.

Ford has so far signed a memorandum of understanding (MOU) on trade with every province and territory — except for Quebec and Newfoundland and Labrador.

Ford said he had “all the confidence” in Legault, whom he considers to be a friend, and called him a “smart business person” who “wants prosperity for the people of Quebec” and understands that “when Quebec and Ontario prosper, the whole country prospers.”

“So, I’m confident we’ll sit down and really hash out a deal,” he said.

Speaking in French, Legault said his government wholeheartedly agrees with Ford’s objective of lifting internal trade barriers between provinces, but said Quebec would attain the same objective by debating and passing legislation — Bill 112 — in the fall.

The bill seeks to facilitate the commercialization of goods from other provinces and territories in Quebec — with some exceptions that will be made public on the government’s website — as well as the mobility of certified workers in the province.

In an interview, Quebec Minister for the Economy Christopher Skeete, who tabled the bill, said he appreciates the intent behind Ontario and others signing MOUs with other jurisdictions, but said these agreements would amount to added layers of bureaucracy.

“The thinking for us is if you pass a bill like we’re passing with Bill 112, that basically just opens everything. Then the point for an MOU becomes moot,” he said.

Skeete, who is also responsible for red tape reduction, said the signing of MOUs between different provinces and territories will lead to businesses having to potentially go through dozens of separate agreements if they want to do business elsewhere in the country.

“I’m not sure we’re providing the clarity that the exercise in cross-border trade seeks to remedy. I think the way forward is to say mutual recognition and harmonization where possible, and let’s just go. I think that is the posture that we need to be dealing with.”

Ontario already adopted Bill 2, the Protect Ontario Through Free Trade Within Canada Act, which enables provincial regulators to mutually recognize goods, services and recognized workers from reciprocating provinces and territories and the federal government.

An official in Ford’s office, speaking on a not-for-attribution basis to discuss internal matters more freely, said they respect Quebec’s wish to go solely the legislative route.

“Certainly, we respect that process, and our door continues to remain open,” they said.

The official added each MOU does not need dedicated legislation to enact the terms set out between Ontario and each province or territory, but specific agreements could help with the free flow of direct alcohol sales to consumers, for instance.

Legault has a majority government in Quebec, which means that Bill 112 will almost certainly pass in the fall. But the bulk of the work on determining which goods should be excluded by regulation from internal trade will commence right after, said Skeete.

“The clock starts when we pass the bill,” he said, adding that different departments inside the Quebec government will have about 12 months to get back to the government and give them a list of goods that they want to opt out of or want to exclude from internal trade.

“In other words, if there’s something that’s being sold outside of Quebec that you absolutely want to have a different norm, you’re going to have to tell us, and then we will publish that on our (ministry of the) Economy website for transparency.”

That way, Skeete added, “businesses will know exactly what they’re getting themselves into when they do business in Quebec.”

Many requirements that are considered not essential would be dropped once Bill 112 is in place. For instance, Transport Quebec currently has requirements that scooters should have reflectors be a specific colour, and be located both on the wheels and in the back.

“That kind of thing creates a barrier. So, we can agree that the scooter needs to have certain safety measures … but certainly, the colour and the location of the reflectors is really not the dealbreaker. So, that’s the kind of thing that would disappear,” said Skeete.

Some things, however, will not change under Bill 112. A senior government official in Quebec said French language laws will continue to apply for goods, and that professional orders in Quebec could require the mastery of French to practice in the province.

Quebec also has more stringent consumer protection laws, which means that goods coming into the province are still subject to certain guarantees, warranties and other norms bound by Quebec’s Office de la protection du consommateur, noted Skeete.

The example of the scooter made in another province would not be exempt from warranty obligations unique to Quebec nor would it be exempt from having instructions in French for how to handle the scooter if it were to be sold in the province, he said.

“The way to do business in Quebec doesn’t change just because you’re importing things from other provinces now.”

National Post calevesque@postmedia.com

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