Most provinces, except for PEI and Newfoundland and Labrador, have signed an agreement to allow interprovincial alcohol sales directly to consumers.

The cannabis industry has been asking for similar changes for years, but was not included in the conversation or subsequent announcement about lessening restrictions on cross-provincial alcohol sales. 

Most provinces tightly control cannabis sales through provincial boards that do not allow producers to ship directly to consumers, although such sales are permitted through Canada’s cannabis for medical purposes program. 

The cross-province alcohol agreement, expected to be signed in the coming weeks, is part of several changes federal, provincial, and territorial governments have been making in recent weeks trying to buoy the effects of US tariffs by boosting other trade avenues. 

This work has been aided by the federal Committee on Internal Trade, led by federal Minister of Transport and Internal Trade Anita Anand and several provincial and territorial counterparts. 

Through the committee, the Canadian Free Trade Agreement (CFTA), first signed in 2017, seeks to reduce and eliminate barriers to the free movement of workers, goods, services and investments in Canada. The 2024-2027 Internal Trade Action Plan (ITAP) aims to guide the collective efforts of the federal, provincial and territorial governments with a view to stimulate interprovincial trade and continue to advance internal trade.

While the threat of tariffs on goods entering the US does not have a direct impact on the Canadian cannabis industry for obvious reasons, knocking down interprovincial trade barriers could be a fantastic and welcome opportunity for the sector, and this has not gone unnoticed.

“This is something I’ve been discussing for a long time, from my previous experience in beverage alcohol in the Nova Scotian wine industry,” Jonathan Wilson, CEO of former cannabis producer Crystal Cure, told StratCann recently.

“We’re a giant country, but we forget that within that country there are a whole bunch of borders,” he said. Wilson added that in his experience, there are various instances where it can be easier to get products from international sources rather than from a different province—something that many sectors and companies have agreed with.

Cannabis producers in Canada wishing to sell cannabis in a particular province (and territories) in most cases, need to get approval from a provincial board. Except in Manitoba and Saskatchewan, those boards control distribution hubs that send cannabis to provincially regulated retailers. While British Columbia introduced a direct delivery program in 2022, it only applies to small-scale BC-based cannabis producers, not producers located outside of BC.

British Columbia launched its direct delivery program with the goal of helping small-scale producers establish a better foothold in the legal market. However, some producers feel this is still a form of protectionism. 

“A very good example is that multiple retailers in BC have been requesting my product and have been rejected by the board because they prefer to support BC cannabis, which is exactly what we’re talking about, interprovincial trade barriers,” Gord Nichol of Saskatchewan cannabis producer North 40 Cannabis, told StratCann recently. 

BC is not the only protectionist province, though, notes Nichol. 

“Let me sell to any retailer I want to, anywhere in Canada. I’ve got retailers in Ontario that would love to carry my product, but I can’t jump through their hurdles to supply six retailers, but I could do it if they weren’t in the way.”

Quebec has also become known as a province that makes efforts to support its own provincial cannabis industry, at times to the frustration of producers seeking to enter that market, one of the largest in Canada. Due to increased security checks, barriers to approval in Alberta have also been noted as a challenge by producers, including those located in the province.

Paul McCarthy, president of the Canadian Cannabis Council, says he’s disappointed cannabis isn’t a part of this specific conversation, but notes that his members are pushing for a similar kind of harmonization with cannabis excise stamps—something the government has said they are considering.

“In short, it’s disappointing,” says McCarthy. “I can only hope that the government re-engages on the cannabis sector. It seems like they have viewed the social side of this policy as a success but have forgotten that on the economic side, we need this to be viable. And no one seems to give that any thought. We are almost certainly going to be in an election in the very near future—I think that presents an opportunity to get a fresh look at this sector, regardless of who comes into office.”

Alannah Davis with the BC Cannabis Alliance, which represents cannabis producers in BC, echoes a similar sentiment about being excluded from these conversations on interprovincial trade, especially when it’s already a strong part of the Canadian-made economy. 

“As an industry that has proven itself to be durable through recessions with a supply chain that’s almost entirely Canadian, it’s disappointing to see cannabis being left out of conversations that would help keep Canadians employed while improving economic opportunities in BC’s rural communities,” Davis tells StratCann.

Justin Trudeau’s office posted comments about the deal on March 5.

“In the face of the United States’ unjustified decision to impose tariffs on Canadian goods, Canada’s First Ministers recognize this is a pivotal moment for Canada to take bold and united action. We must increase our economic resilience, reduce dependence on one market, and strengthen our domestic economy for the benefit of Canadian workers and businesses now and in the future. One key step is to make it easier for Canadians to do business with each other from coast to coast to coast.”

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