Prioritize Air Connectivity for Trade and Economic Growth
Air connectivity is a high-value pillar of Canada’s renewed trade and economic agenda. It underpins the movement of perishable agri-food, critical components, and time-sensitive commercial shipping, and supports business travel and tourism that fuels Canada’s services sector and global trading relationships.
As Canada advances its trade and economic agenda across partners and target regions in Asia, the Indo-Pacific, Europe, Africa, and the Americas, the policy and program framework should more fully recognize and leverage air connectivity within the government’s ongoing strategic investment and economic strategies. Today’s program eligibility limits do not consistently reflect airports’ role in Canada’s economic connectivity, in regional business and cargo networks, or in enabling high-value exports and inbound critical supply chains.
Building on new investment in airport economic development opportunities in a Small and Medium Airports Growth and Resilience program, two complementary actions to open new markets and improve airports’ competitiveness as trade platforms are recommended. The government should prioritize modernizing Canada’s Air Transportation Agreements to open new routes and linkages to the globe — nine percent of departing seats at Toronto Pearson in 2025 were from new airline market entrants, demonstrating the demand, however current agreements are in many cases old, restrictive, and misaligned with current objectives.
Finally, Arrivals Duty-Free sales must be put on track for approval, so airports can repatriate tens of millions of dollars in lost annual revenue to foreign airports. Over 60 countries allow this policy today; Canada’s restriction is a global outlier that forgoes jobs, convenience and new non-aviation revenue, instead directing traveller spending to foreign airports.
Government should advance policy reform and pilots of arrivals duty-free and hybrid duty-free/duty-paid retail. Canadian airports are ready to move forward on authorization in 2027.