The Agreement on Internal Trade (AIT) is a Canadian intergovernmental agreement designed to facilitate trade and investment among provinces and territories. The agreement was signed in 1994 and aimed to reduce barriers to trade, investment, and labour mobility within Canada.

Since the signing of the AIT, the federal, provincial, and territorial governments have worked together to harmonize regulations and standards across the country. The AIT established a framework for cooperation, allowing for the exchange of information and the development of common policies and practices.

The AIT covers a wide range of sectors, including agriculture, construction, energy, financial services, health care, and transportation. The agreement aims to eliminate or reduce non-tariff barriers to trade, such as regulations, standards, and certification requirements.

One of the key features of the AIT is the dispute resolution mechanism. Governments are required to provide a process for resolving disputes that arise under the agreement, such as disagreements over regulatory requirements or procurement practices. This mechanism ensures that all parties to the agreement are able to benefit from the free flow of goods, services, and investment across the country.

The AIT has been an important tool for promoting economic growth and job creation in Canada. By reducing barriers to trade and investment, the agreement has helped to increase competition and innovation, while also creating new opportunities for businesses and workers across the country.

However, there have been some concerns about the effectiveness of the AIT in recent years. Some provinces have been reluctant to implement certain provisions of the agreement, citing concerns about sovereignty and the impact on local industries. This has led to criticism that the AIT is not doing enough to promote cross-border trade and investment within Canada.

Overall, the Agreement on Internal Trade remains an important tool for promoting economic growth and prosperity in Canada. As the country continues to face economic challenges, it will be important to ensure that the AIT remains a key priority for governments across the country. By working together to reduce barriers to trade and investment, Canada can continue to build a stronger and more competitive economy that benefits everyone.