But together, they could make a large difference in our long-term economic prospects. Let’s consider the possibilities in light of existing empirical evidence. Begin with the removal of interprovincial trade barriers. Conservative estimates suggest that removing interprovincial trade barriers could add one- or two-tenths of a percentage point to Canada’s potential output annually. Some estimates are far larger.
As for international trade, research conducted at the World Bank and elsewhere suggests that the TPP could add a further one- or two-tenths to our potential output growth. The Canada–EU trade agreement should also boost potential, though estimates suggest by less than the TPP. In a low-growth world, these three initiatives taken together could have a significant impact on economic growth, year after year.