On this week’s Voice of Business, we’re taking a closer look at how the Government of Ontario has responded to the growing economic pressure caused by U.S.-imposed tariffs and international uncertainty. While these measures won’t solve all challenges overnight, and many businesses are still struggling, Ontario’s action represent significant steps in addressing the stress and pressures facing various industries.
It often takes a crisis for us to evolve, and this trade war forced that evolution to happen sooner than expected. Just last month, Ontario led the way in removing several interprovincial trade barriers, a long-standing issue that has held back economic efficiency and domestic trade. By doing so, the province opened new pathways for goods, services, and talent to flow more freely across the country, a move that reduces our overreliance on the U.S. market and strengthens internal Canadian trade. Ontario has also taken further action on multiple fronts to support local businesses and future-proof our economy. One key step is a $750 million investment in Science, Technology, Engineering, and Mathematics (STEM) education across post-secondary institutions. This funding will support up to 20,500 new student seats per year, helping Ontario build a future-ready workforce in critical industries like advanced manufacturing, clean tech, and data science. As global demand rises for tech and engineering talent, this investment will help keep Ontario competitive. The province is also addressing a long-standing challenge around innovation ownership. A $3.39 million investment will help Ontario’s colleges and universities build stronger intellectual property (IP) capacity. This means research breakthroughs developed here are more likely to stay in the province, creating homegrown companies and jobs. It also protects Ontario from the common practice of IP being owned by foreign corporations through research partnerships, ensuring that the economic value of innovation benefits Ontarians first. To alleviate immediate financial pressure, Ontario has announced $11 billion in tariff relief and cost-saving measures. This includes $9 billion in suspended interest and penalties on various provincial taxes, including the Employer Health Tax and levies on insurance, gas, alcohol, and tobacco. In addition, $2 billion in WSIB rebates are being returned to businesses to help offset operating costs. Together, these moves will allow more businesses to retain staff, invest in operations, and weather economic uncertainty. The province is also expanding the Skills Development Fund by $1 billion over three years, ringing the fund’s total to $2.5 billion. This investment will help retrain and upskill Ontario workers, especially those affected by layoffs tied to tariff pressures. Whether transitioning into trades, healthcare, or other growing sectors, workers will be supported in securing good-paying jobs with long-term potential. These investments, from education and innovation to cost relief and workforce development, represent a strategic shift. Ontario is building a future-proofing our economy if a trade war does reappear in the future. While challenges remain, these efforts lay the groundwork for long-term prosperity, job growth, and economic resilience. For businesses, these measures open new opportunities to access skilled talent, manage costs, and stay competitive. For workers, they offer greater stability and upward mobility during uncertain times. At a broader level, Ontario’s investment in intellectual property is a strategic step toward addressing Canada’s productivity crisis, helping to ensure that innovations developed here stay here, fueling domestic growth and job creation. While no policy can solve every challenge overnight, these initiatives target critical areas in need of support. They provide relief for vulnerable industries like auto and steel, while also empowering post-secondary institutions to play a central role in developing a resilient, future-ready workforce to meet the demands of tomorrow’s economy and keep high-quality jobs in Ontario. There’s some exciting news coming out of Ontario this month, especially for businesses. After months of dealing with tariffs, uncertainty, and all the stress that comes with not knowing what the future holds for international trade, the Ontario government has stepped up. They’ve introduced a new legislative package called the “Protect Ontario Through Free Trade Within Canada Act”, in creating fewer barriers, more opportunities, and a much easier time moving products, services, and skilled workers between provinces.
Local businesses, along with businesses across the country, have been calling for this kind of action for some time. When uncertainty plagues international markets, it only makes sense to strengthen trade opportunities closer to home. These changes could open up new ways for businesses to grow across provincial borders and tap into markets they may not have previously considered. Let’s break down the new legislation and why it matters for Ontario’s economic future: First, Ontario has signed new economic cooperation agreements with Nova Scotia and New Brunswick to lead the way in breaking down interprovincial trade barriers. This proactive step will simplify and streamline regulations, ensuring that any good, service, or registered worker approved for sale, use, or work in one of the participating provinces (or by the federal government) will also be recognized as approved for sale, use, or work in Ontario. In practical terms, this means regulators here will now be required to recognize goods, services, and licensed workers from those other provinces. If you're running a business or working as a professional, it should now be much easier to expand your reach without getting buried in paperwork simply because you're crossing a provincial line. Second, Ontario is scrapping its 23 "Party Specific Exceptions" (PSEs) under the Canadian Free Trade Agreement. These exceptions had dictated how businesses could operate, compete, and sell within Ontario, often creating extra hurdles for out-of-province companies. By removing these PSEs, Ontario is making it easier for businesses from other provinces to set up and operate here. This move not only benefits Ontario consumers and businesses, but it could also set a powerful example for other provinces to follow, encouraging a reduction of internal trade barriers and promoting free trade across Canada. Third, Ontario is speeding up the certification process for workers. The Province will now have just 30 days to make a decision on whether a worker’s credentials are recognized. This is a game-changer for key sectors struggling with labour shortages, such as healthcare and the skilled trades. By cutting down wait times, Ontario will make it much easier for qualified professionals to get to work sooner. In addition to these changes, the Province is also opening up direct-to-consumer alcohol sales across provincial borders. This move allows local wineries and breweries to expand their customer base beyond Ontario, selling directly to consumers across the country. At the same time, Ontarians will benefit from greater access to products from producers in other provinces, expanding consumer choice and bringing a more connected national marketplace. Finally, Ontario is taking steps to make it easier for health professionals to get to work. Audiologists, dentists, physiotherapists, pharmacists among others will now be able to start practicing sooner. Even American-licensed nurses and doctors will have a smoother, faster path to working in Ontario. These changes are critical for communities across the province that address the urgent for more healthcare professionals and services. While the current global trade tensions continue to have an impact both here and across the country, these new measures by the Province present a significant step in the right direction. Although they will not solve every challenge businesses are facing, strengthening domestic trade creates new opportunities right here at home and brings a little more certainty at a time when it is needed most. |
AuthorThe Peterborough and the Kawarthas Chamber of Commerce acts as a catalyst to enhance business growth, opportunity, innovation, partnerships and a diverse business community. Archives
May 2025
Categories |
Copyright Greater Peterborough Chamber of Commerce. All rights reserved.
175 George Street North, Peterborough, ON, K9J 3G6 Phone: (705) 748-9771 | (705) 743-2331 Home | Calendar | Site Map | Privacy | Accessibility |