As uncertainty surrounding Canada’s relationship with its main trading partner intensifies, federal and provincial governments have turned their attention inward to the urgent need to eliminate non-tariff interprovincial trade barriers. These include protectionist statutory and regulatory restrictions, as well as technical and administrative hurdles that impede the free flow of goods, services, and labour across provincial and territorial borders.
This renewed focus is a positive development. Interprovincial trade barriers have long undermined Canada’s economic efficiency, costing the country up to 4% of its real GDP, while stifling business growth and limiting workforce mobility. These barriers take various forms, including inconsistent regulations, diverging technical standards, and complex logistics.
In this article, we examine how such interprovincial trade barriers specifically affect Canada’s trucking sector.
A fragmented system: Why trucking regulations vary so widely across Canada
Canada’s federal system divides jurisdiction over transportation between two levels of government:
- The federal government, pursuant to the Constitution Act, 1867, oversees all national transportation, including air and marine modes of transportation, as well as rail and road transportation that operates across provincial or international boundaries (commonly referred to as “extra-provincial” carriers).
- Provinces and territories, on the other hand, regulate transportation activities that occur solely within their own borders, including short line and industrial railways, as well as intra-provincial motor carriers.
Despite these delineated responsibilities, the federal government has delegated to the provinces and territories the authority to enact laws and regulations for the safe operation of commercial motor vehicles, including those which are engaged in extra-provincial trucking. Provinces and territories also maintain and set applicable standards for highways and roads. This results in a patchwork system of regulations that increases costs and administrative burdens for Canada’s extra-provincial trucking companies.
A recent report (PDF) by the Canadian Trucking Alliance (“CTA”) highlights the most pressing interprovincial barriers faced by the industry. These challenges fall into three main categories:
- access to information;
- infrastructure and road conditions; and
- regulation and safety.
Information gaps
The absence of a centralized system that consolidates safety-related data records and labour compliance information creates significant inefficiencies in Canada’s trucking industry. When seeking to evaluate the credentials and reputability of a motor carrier, shippers must currently consult a patchwork of federal, provincial, and territorial sources – each with its own disclosure rules and access procedures. Carrier safety performance data, including collision and out-of-service rates, must be obtained from the provincial agency responsible for monitoring compliance with the National Safety Code. If a carrier operates across multiple provinces, inquiries must be made separately with each jurisdiction. Similarly, information concerning mandatory local workers’ compensation programs, employee registration, or workplace injury and illness claims is only accessible through each provincial workers’ compensation board (“WCB”). For motor carriers with drivers who reside in or ordinarily report to work in two or more provinces, inquiring with WCBs across multiple jurisdictions becomes a time-consuming and complex exercise.
Infrastructure and road conditions
Canada’s highway infrastructure has developed unevenly due to provincial and territorial jurisdiction over road construction and maintenance. In regions such as the Prairies and the Maritimes, trucking companies often encounter less developed roads, resulting in increased travel time, higher maintenance costs, and reduced operational efficiency.
The National Highway System design guidelines recommend that rest areas be placed every 80 to 160 km to allow drivers to meet regulated rest periods. In practice, facilities meeting these recommendations are absent along various stretches of highway throughout Canada, contributing to driver fatigue and increasing the risk of non-compliance.
Winter road maintenance also varies by region due to differing weather conditions and resource constraints. These disparities pose significant risks to road safety and create unpredictability in delivery timelines.
Addressing road maintenance through a coordinated national approach and standard could improve travel conditions and enhance supply chain reliability.
Navigating a maze of trucking permits and driver rules across Canada
Vehicle Regulations
Permitting requirements and regulations impacting road access vary across Canada. Vehicle configuration standards and rules for oversized or overweight vehicles differ by province, leading to inconsistencies in permit requirements and road weight restrictions.
While permissible axle weights are generally uniform, overall vehicle weight allowances vary, sometimes requiring certain trucks to take longer routes. However, a study (PDF) by Ontario’s Ministry of Transportation suggests that, despite differences in vehicle weight regulations, Canadian highways are largely designed to the same structural standards – meaning they can support similar vehicle weights. This raises the question of whether such variation in weight regulations is necessary, especially since it deters interprovincial transportation activities.
Additionally, transporting certain goods, such as gas, oil, or alcohol, requires different permits depending on the province. For example, the transportation of alcohol requires additional licensing and certification requirements, adding complexity for trucking companies operating across multiple jurisdictions.
Driver Regulations
Driver licensing and permit requirements also vary by jurisdiction. For example, Mandatory Entry Level Training is required for commercial drivers in some, but not all, provinces. Additionally, there continue to be variances in daily driving and off-duty time limits for intra-provincial trucking in certain provinces, even though the federal government has adopted a uniform set of hours-of-service rules for drivers employed by extra-provincial motor carriers. These inconsistencies create administrative hurdles and additional costs, complicating operations for trucking companies.
Regulatory reform on the horizon
CIT Trucking Pilot
Tariff tensions between Canada and the U.S. have sparked discourse about reducing interprovincial trade barriers. The federal government has demonstrated a commitment to reform. On September 26, 2024, the Committee on Internal Trade (the “CIT”) announced a trucking pilot aimed at harmonization through mutual recognition of provincial and territorial regulations.
Spearheaded by the province of Newfoundland and Labrador and the federal government, this initiative has gained the support of 10 out of Canada’s 13 provinces and territories. The pilot will consist of a series of mutual recognition agreements to address discrepancies – such as oversized vehicle signage requirements and labour permitting – in an effort to relieve compliance burdens on trucking companies.
Looking Ahead
While the trucking pilot represents a positive step toward reducing regulatory barriers, critics suggest that mutual recognition may not be the optimal solution. Some argue that trucking standard variances reflect the realities of Canada’s diverse geographic considerations and resources, making standardization impractical. For example, British Columbia’s mountainous terrain may justify stricter regulations than Saskatchewan’s flat plains.
Others worry that recognizing less stringent provincial standards nationwide could compromise safety. Those sharing such concerns advocate for harmonized standards set at a higher, uniform level. However, the CIT has assured stakeholders that the program will address these concerns by prioritizing safety and security measures. An update is expected ahead of CIT 2025 in August 2025.
For more information on interprovincial trade barriers in the trucking sector and further developments related to this matter, please contact a member of Miller Thomson’s Transportation & Logistics Team.
