The Canadian Agreement on Internal Trade: Developments and Prospects


Michael P. Leidy

Publication Date:

April 1, 1998

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate


Under a federal system of government, the division of responsibilities between the federal, provincial/state, and local levels of government may create internal barriers to trade. To deal with this problem, the federal and provincial governments in Canada established the Agreement on Internal Trade (AIT). This paper takes stock of the achievements and shortcomings of the AIT. Because the internal barriers to trade being addressed by the AIT are not unique to Canada, the agreement presents a useful model for reform that could be emulated by other countries.


Working Paper No. 1998/051



Publication Date:

April 1, 1998



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