By Paul Chorney
Interprovincial trade in Manitoba has become increasingly important as Canada seeks to strengthen its internal economy. On January 20, 2026, at the World Economic Forum in Davos, Switzerland, Canadian Prime Minister Mark Carney stated that his government had “removed all federal barriers to interprovincial trade.”[1] For a trade-dependent province such as Manitoba, geographic constraints, regulatory red tape, and interprovincial fragmentation continue to limit market access, making it uncertain whether these claimed reductions in national and international trade barriers will materialize. While the promise of internal free trade is clear, whether the system delivers it is another question.
This five-part blog series examines interprovincial trade in Manitoba from the ground up. It begins with the big picture and the governing legal framework, then identifies and categorizes the main types of provincial trade barriers, including both legal and practical constraints. It next evaluates whether these barriers are justified in light of provincial autonomy and policy goals, before turning to external pressures, current reform mechanisms, and recent legislative responses. The series concludes by looking forward to the future of interprovincial trade, including northern development, the Port of Churchill, and the regulatory and jurisdictional challenges that come with expanding new trade corridors.
The Numbers
Manitoba’s economy remains strong because of its robust export market. Due to affordable industrial land, electricity, and office rent, Manitoba is a prime location for manufacturing goods. With rich agricultural land and natural resources, the diverse economy does not have to rely on a single industry. Exports include pharmaceuticals, wheat, pork, canola oil, buses, frozen vegetables, and agricultural machinery.[2] In 2025, Manitoba exported $22.199 billion worth of goods from all industries.[3] To put this figure into perspective, Manitoba ranks sixth among the 13 provinces and territories in terms of total value of goods exported.[4] Having a diverse export market prevents major economic shocks, rather than relying on a single major export. However, Manitoba has a smaller domestic market for many of the manufactured goods, making the province sensitive to external factors such as tariffs or other barriers to trade.
The Legislation
The legislative authority for Canadian trade is possessed by the Federal Government under Section 91(2)(2) of the Constitution Act, 1867, for “The Regulation of Trade and Commerce.”[5] Further, the Constitution Act, 1867 intended to entrench the right to free interprovincial trade through Section 121, where “All Articles of the Growth, Produce, or Manufacture of any one of the Provinces shall, from and after the Union, be admitted free into each of the other Provinces.”[6] On its face, Section 121 appears to provide broad authority to trade, although in R v Comeau, the Supreme Court of Canada held that the purpose of Section 121 is not to impose free trade but to prohibit laws that “in essence and purpose” restrict the passage of goods across provincial borders.[7] Although trade may be federally regulated, provinces may unintentionally impose barriers by regulating different industries. As Carney stated in Davos, the federal trade restrictions have been removed, although the barriers remain on a provincial level.
The Effect of Tariffs
For Manitoba, the problems created by the constitutional power of the provinces to impose trade barriers are magnified when international trade becomes unstable, and provinces are forced to rely on interprovincial trade, as is the case with recent U.S. tariffs on Canadian goods. In early 2025, the implementation of U.S. tariffs on Canadian products (and the retaliatory tariffs Canada introduced in response) made international trade between Canada and the U.S. less appealing and underscored the need to strengthen trade relations between Manitoba and its neighbouring provinces.[8] The trade war began with a 25% tariff on Canadian products and a 10% tariff on energy resources and critical minerals from Canada.[9]
Not only do the tariffs create uncertainty, but they also increase costs for Manitoba producers and consumers. This highlights the overreliance on supply chains connected with the U.S. and the need to strengthen trade connections with other provinces. The need for greater internal trade routes has begun to reveal the many inefficiencies that currently exist in Canadian interprovincial trade, often due to unintentional provincial regulations rather than federal red tape.
Manitoba’s closest option for goods to reach the global market has been south into the U.S., although this option has become less attractive due to tariffs and the lack of infrastructure for trade through Canada’s north. As there is a growing need to explore other trade routes, an emerging option is found in Northern Manitoba through the Port of Churchill.[10] The other option is a greater reliance on trade passing through neighbouring provinces to reach major ports such as Vancouver or Montreal.[11] As Manitoban goods are forced to go either east or west, it is important to reduce barriers and promote this trade. Regardless of the trade route, interprovincial trade is unavoidable and necessary to improve and strengthen Manitoba’s economy.
Conclusion
The implementation of U.S. tariffs on Canadian products has displayed the need for provinces to turn towards other trade routes, such as interprovincial trade to reach global markets. At the same time, this shift has exposed persistent inefficiencies, as fragmented provincial laws and regulatory regimes continue to obstruct cross-Canada trade. The next question, then, is straightforward: what specific barriers remain in place? The following blog examines them in detail.
[1] “World Economic Forum Annual Meeting” (19–23 January 2026) online: <https://www.weforum.org/meetings/world-economic-forum-annual-meeting-2026/>; Mark Carney, “Principled and Pragmatic: Canada’s Path,” World Economic Forum Annual Meeting (20 January 2026, Davos, Switzerland) online: <https://www.pm.gc.ca/en/news/speeches/2026/01/20/principled-and-pragmatic-canadas-path-prime-minister-carney-addresses>.
[2] “Manitoba’s Strategic Advantages: Business Development,” Government of Manitoba (n.d.) online: <https://www.gov.mb.ca/jec/mbadvantage/businessdev.html>.
[3] “Report – Trade Data Online,” Government of Canada (retrieved 26 January 2026) online: <https://ised-isde.canada.ca/app/ixb/tdo/runRpt.html>.
[4] “Report – Trade Data Online: Distribution by Province,” Government of Canada (retrieved 26 January 2026) online: <https://ised-isde.canada.ca/app/ixb/tdo/runRpt.html>.
[5] Constitution Act, 1867 (UK), 30 & 31 Vict, c 3, s 91(2)(2).
[6] Ibid. at s. 121.
[7] R. v. Comeau, 2018 SCC 15.
[8] Zvi Halpern-Shavim and Elena Balkos, “U.S.-Canada Tariffs: Timeline of Key Dates and Documents,” Blakes (19 December 2025) online: <https://www.blakes.com/insights/us-canada-tariffs-timeline-of-key-dates-and-documents/>.
[9] Ibid.
[10] “Ports Manitoba Project Unites the Port of Churchill, CentrePort Canada, and Winnipeg Airports Authority in First-of-its-Kind Trade Partnership,” CentrePort Canada (19 January 2026) online: <https://centreportcanada.ca/media-release-new-manitoba-trade-alliance-strengthens-inland-air-arctic-corridors/>.
[11] “5 Largest Ports in Canada: Key Trade Gateways Explained,” Ship4wd (21 November 2025) online: <https://ship4wd.com/logistics-shipping/largest-ports-in-canada>.
The views and opinions expressed in the blogs and case reporter are the views of their authors, and do not represent the views of the Desautels Centre for Private Enterprise and the Law, the Faculty of Law, or the University of Manitoba. Academic Members of the University of Manitoba are entitled to academic freedom in the context of a respectful working and learning environment.