What Ontario employers need to know about the Protect Ontario Through Free Trade Within Canada Act
On April 16, 2025, the Ontario government introduced Bill 2, the Protect Ontario Through Free Trade Within Canada Act, 2025. The legislation is part of a broader strategy to strengthen economic growth, address labour shortages, and foster national unity through improved internal trade and labour mobility. If passed, this legislation could significantly impact Ontario employers, particularly those with interprovincial operations or hiring needs that cross provincial borders.
This article explores the legislation's background, outlines its key provisions, and analyzes its implications for Ontario employers. With over $400 billion in trade annually between provinces, the stakes are high. Employers need to understand how Bill 2 could shape hiring practices, compliance obligations, and the broader business environment.
Canada is often criticized for having a fragmented internal market despite being a single country. Each province and territory has its own regulatory frameworks, licensing bodies, and trade rules, leading to inefficiencies and unnecessary costs. Ontario’s government estimates that internal trade barriers reduce Canada's GDP by as much as four per cent, costing billions annually.
Bill 2 is a direct response to these challenges. It aims to build upon the Canadian Free Trade Agreement (CFTA) by enhancing Ontario’s ability to recognize goods, services, and credentials...
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