While U.S. tariffs dominate trade discussions, barriers within Canada also hinder economic development. Reducing these restrictions can unlock opportunities, particularly in British Columbia, where interprovincial trade is crucial.
From June to October 2024, Statistics Canada conducted the Canadian Survey on Interprovincial Trade to examine the challenges businesses face when trading across provinces. The results highlight both the scope of interprovincial commerce and the barriers that limit its potential. In BC, recent discussions have explored solutions such as provincial trade agreements and infrastructure improvements to lower costs.
BC businesses are key players in Canada’s interprovincial trade network. According to the survey, one in three businesses that purchased interprovincially sourced goods or services from BC (31.3%). Wholesale trade and manufacturing lead BC’s interprovincial commerce, with wholesale trade accounting for 63.9% of purchases and 61.9% of sales. These industries demonstrate BC’s capacity for expansion.
Despite BC’s strong trade position, transportation costs remain a significant challenge. The survey found that 27.4% of businesses purchasing interprovincially and 23.2% of those selling cited transportation costs as their primary barrier. For businesses on Vancouver Island, these costs can be prohibitive, limiting competitiveness in broader markets. Shipping goods between BC and other provinces is further complicated by limited direct transportation links, driving up costs, particularly for small and medium-sized enterprises.
While not a quick fix for broader economic issues, enhancing interprovincial trade fosters long-term growth. By improving infrastructure, aligning regulations, and fostering strategic partnerships, BC can strengthen its position in Canada’s evolving economic landscape.
The key message is that the Cowichan region and the greater BC economy can mitigate some of the impacts of US trade tariffs by having a renewed focus on opportunities for interprovincial trade, with the need to overcome transportation barriers being a principal challenge.
