I have written before about why we need to see cooperative food stores in communities across Canada. With the recent reduction or removal of trade barriers, now is the time to make this happen.  

Across Canada, there is a growing hunger – not only for better food, but for better ways of feeding our communities. The conventional supermarket model, dominated by multinational chains and long supply chains, has left many rural and urban neighbourhoods underserved, overpriced, or entirely cut off from fresh, affordable produce. In this landscape, community-based food cooperatives offer a compelling alternative. They prioritize local sourcing, democratic ownership, and keeping profits within the community. With momentum building to eliminate interprovincial trade barriers in Canada, the conditions are finally aligning to help co‑ops move from niche to necessary.

Historically, Canada’s internal trade system has been surprisingly fragmented. Despite a national economy and federal structure, provinces have operated with distinct sets of rules on everything from food labeling to trucking routes. These non-tariff barriers have acted like an invisible tax on internal trade – estimated by economists to be equivalent to a 21 percent tariff. The consequences have been far-reaching: regional producers face steep compliance costs just to sell across a provincial border; small grocers and co‑ops encounter shipping delays and complex regulations; and ultimately, consumers pay more at the till, with one estimate suggesting Canadians lose up to $200 to $250 per year on food costs due to internal barriers.

This disjointed regulatory landscape has been particularly tough on community co‑ops, which often rely on smaller suppliers who can’t afford to navigate provincial red tape. A co‑op in Saskatchewan wanting to feature artisanal Quebec cheese, or a Northern Ontario store hoping to offer Nova Scotia apples, may find themselves tangled in transportation rules, inspection standards, or product packaging requirements that vary from one province to the next. For organizations founded on values of local empowerment and food access, these barriers have long undermined their ability to operate efficiently and expand.

But change is in the air. A concerted effort, led by federal and provincial governments in response to longstanding calls from economists, producers, and consumers, is finally dismantling these internal walls. The Canadian Free Trade Agreement (CFTA), adopted in 2017, was a foundational shift. It moved from a restrictive “positive list” approach, where only specified goods could cross provincial lines freely, to a “negative list,” where everything is presumed tradeable unless specifically excluded. Further momentum arrived in 2025 with the introduction of the One Canadian Economy Act, which enshrined mutual recognition of many provincial regulations and expanded labour mobility agreements. Recent cooperation between provinces like Alberta, British Columbia, and Nova Scotia has also smoothed trade in alcohol and agri-food products, and Ontario is now joining these efforts.

For food co‑ops, these developments are transformative. Reduced regulatory duplication and harmonized standards mean a broader, more diverse pool of suppliers is accessible. A co‑op in Winnipeg can now stock free-range eggs from a Manitoba farm alongside preserves from Prince Edward Island without needing a legal team to ensure compliance. With fewer restrictions on trucking and packaging, costs are lowered and logistics are simplified. This makes it more feasible for new co‑ops to start up, for existing ones to expand, and for regional partnerships to flourish.

Communities stand to gain tremendously from this shift. Food cooperatives can now tap into a more diverse national supply while staying true to their commitment to local and sustainable sources. Access to different growing zones and seasonal products across the country helps stabilize supply, especially for regions prone to climate disruptions. In Indigenous and Northern communities, where reliable food access remains a challenge, co‑ops empowered by seamless interprovincial trade could offer life-changing improvements.

There is also a broader economic story here. With fewer trade restrictions, small- and medium-sized farms and food businesses gain new markets. Many of these enterprises are community-owned or family-run. Selling into co‑ops in other provinces can help them grow sustainably without abandoning their values. The revenue generated stays local, supporting jobs, infrastructure, and innovation. Over time, this creates a virtuous cycle of local food systems supporting each other across provincial lines – a true pan-Canadian cooperative economy.

The benefits are not only economic. Food co‑ops build social capital. They encourage civic participation, give members a voice in decision-making, and often support education, nutrition, and sustainability initiatives. By breaking down provincial barriers, Canada is not just enabling trade; it is strengthening the social fabric of its communities.

Still, vigilance is needed. Some of the most entrenched barriers, particularly in supply-managed sectors like dairy and poultry, remain in place. Continued advocacy will be necessary to ensure reforms are fully implemented and that smaller players, including co‑ops, are not overlooked in favour of large industrial producers. But the path forward is clearer than it has ever been.

The vision of a Canada where every town and neighbourhood can nourish itself through a thriving, cooperative food economy is no longer idealistic – it is within reach. The removal of internal trade barriers is more than just a policy win; it is a catalyst for community renewal. It allows cooperatives to be what they were always meant to be: rooted in the local, connected across regions, and working together to feed a stronger, fairer nation.

Sources:
• Retail Insider (2025). “Interprovincial Trade Barriers Impact Canada’s Food and Beverage Sector.” https://retail-insider.com/retail-insider/2025/01/interprovincial-trade-barriers-impact-canadas-food-and-beverage-sector
• Canada Regulatory Review (2025). “The Impact of Lower Interprovincial Trade Barriers on Canada’s Agriculture and Agri-Food Sector.” https://www.canadaregulatoryreview.com/the-impact-of-lower-interprovincial-trade-barriers-on-canadas-agriculture-and-agri-food-sector
• Financial Times (2024). “Internal Canadian Trade Costs More Than You Think.” https://www.ft.com/content/90d68648-1905-48f9-906c-301ff047ca56
• Canadian Grocer (2025). “Breaking Down Interprovincial Trade Barriers: What’s at Stake for the Food Sector?” https://canadiangrocer.com/breaking-down-interprovincial-trade-barriers-whats-it-food-sector
• Reuters (2025). “Carney Says Canada Aims to Have Free Internal Trade by July 1.” https://www.reuters.com/world/americas/carney-says-canada-aims-have-free-internal-trade-by-july-1-amid-us-tariffs-2025-03-21/