Jessica Frenette, owner of Bird’s Hill Farms in New Brunswick, raises full-blood Japanese Wagyu beef that has food lovers across the Maritimes clamouring to buy. But even with eager customers in Nova Scotia, Prince Edward Island and Newfoundland, she cannot sell her product outside New Brunswick.

“We are not able to send them our product right now. We can only sell in New Brunswick. It’s definitely something that’s hindering our growth potential,” Frenette told CBC.

For small producers like Frenette, the restriction limits potential revenue and keeps prices higher than they might otherwise be. Consumers also feel the effects, with limited availability of specialty products and less choice in the marketplace.

How New Brunswick’s rules block Wagyu from reaching other provinces

Interprovincial trade barriers are rules that restrict the movement of goods and services across provincial borders. In the case of meat, only federally inspected facilities approved by the Canadian Food Inspection Agency can legally ship products between provinces. Meat processed in provincially inspected facilities, even if it meets strict safety standards, cannot leave the province.

Frenette says chefs and consumers elsewhere are ready to pay premium prices. The result is a smaller market, lower sales volumes and lost opportunities to grow her business.

A 2023 report by the Montreal Economic Institute identified 245 exemptions to the Canadian Free Trade Agreement across all provinces and territories, many of which involve agriculture and food products.

Governments are moving to reduce internal trade restrictions

Recognizing the economic cost of these barriers, the federal government and several provinces have introduced initiatives to ease restrictions. Bill C-5, passed in 2025, aims to eliminate federal-level barriers to internal trade and labour mobility by July 1, 2025. Provinces including Ontario and Prince Edward Island are updating legislation to remove obstacles for goods and services moving between provinces.

Economists say creating a more unified Canadian market could boost GDP by up to $200 billion. For consumers, more access to specialty products like Wagyu beef is possible. Small businesses could reach new markets and increase revenue without being restricted to a single province.

Why relaxing trade rules could help shoppers and producers

Removing internal trade barriers could lower grocery bills, expand choice and increase competition in the food market. When supply is artificially constrained, prices often remain high, especially for premium items.

Small producers would gain access to broader markets, allowing them to invest in growth, hire more staff and scale their operations. Any changes would need to maintain safety standards and inspection protocols to protect consumers, but the potential economic and consumer benefits are significant.

How grocery bills and small farms are affected by trade barriers

Food prices across Canada are already rising. Statistics Canada reports that grocery store food prices climbed 3.4% year-over-year as of July 2025, with beef among the most expensive items.

For farmers like Frenette, restricted interprovincial trade creates a policy headache that directly limits their growth, revenue and ability to meet strong demand. Consumers, meanwhile, face higher prices and fewer options for specialty products, from Wagyu beef to artisanal cheeses.

Unlocking Canada’s potential: why easing trade barriers matters

Relaxing internal trade restrictions could be a win-win for both shoppers and small producers. Farmers could expand into new markets, scale their operations and create more jobs, while consumers would benefit from more variety and competitive prices at the grocery store. As Canada works toward a more unified market, products like New Brunswick Wagyu could finally reach eager plates across the country, turning provincial boundaries into opportunities rather than obstacles.

Sources

1. CBC News: This N.B. farmer’s got beef that she can’t ship to customers who want it, by Jacques Poitras (Sep 9, 2025)

2. Canadian Regulatory Review: The impact of lower interprovincial trade barriers on Canada’s agriculture and agri-food sector, by Morgan Camley and Kathryn Gullason (Feb. 26, 2025)

3. Statistics Canada: Consumer Price Index (CPI): Statistics Canada’s primary measure of inflation (Jul 2025)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.