The Loonie Hour Canada's Productivity Crisis is Suffocating the Economy- w/guest Trevor Tombe
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Feb 20, 2026 
Trevor Tombe, economist and University of Calgary professor known for fiscal and interprovincial trade work. He discusses Canada's productivity slump and why capital investment matters. Short takes on interprovincial trade barriers and how energy and infrastructure projects boost value. Talks tax reforms like full expensing and the need for faster, predictable permitting to unlock investment.
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Hidden Cost Of Interprovincial Frictions
- Trevor Tombe estimates interprovincial trade frictions cost Canada about 7% of GDP, roughly $200–$210 billion annually.
- Those losses lower incomes, wages, and profits across the country and stem from regulatory differences between provinces.
Tiny Rules, Big Economic Drag
- Practical frictions like trucking weight rules and repeated food inspections cascade into large economy-wide costs.
- Small regulatory mismatches force duplication, raising prices and reducing efficiencies across supply chains.
Mutual Recognition Cuts Redundant Rules
- Use mutual recognition to cut duplication: accept goods/services certified elsewhere unless explicitly exempted.
- Trevor notes recent agreements and the national mutual recognition move as large, practical steps forward.