Hub Podcasts One Canadian economy? Not quite yet
Nov 27, 2025
Trevor Tombe, an economics professor, and Mark Milke, founder of the Aristotle Foundation, delve into the nuances of the Canadian economy. Tombe highlights the challenges of internal trade, emphasizing the Mutual Recognition Agreement's limitations, especially in agriculture. Meanwhile, Milke critiques the decline in literacy linked to image-driven media and its impact on childhood development. They explore the contrasts between Canada and the U.S. in fostering economic dynamism and the need for reforms to invigorate corporate landscapes.
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Mutual Recognition Is A Good Start
- The Canadian Mutual Recognition Agreement reduces some internal trade frictions but currently covers mostly manufactured goods and leaves out services and many foods.
- Trevor Tombe estimates fully liberalizing goods could yield billions, but services liberalization holds the largest untapped productivity gains.
Exemptions Create Transparency And A Roadmap
- The agreement allows provinces to list exemptions, making remaining barriers transparent and creating a roadmap for reform.
- Trevor Tombe notes exemptions limit immediate gains but can shrink over time as governments reassess them.
Services Drive The Biggest Gains
- Services account for most internal trade and face much higher interprovincial costs than goods due to fragmented licensing.
- Tombe estimates two-thirds to 95% of mutual-recognition gains stem from services reform.
