Here’s why Quebec went from C- to A for its small business report card

Canadian Federation of Independent Business author Keyli Loeppky explains why Quebec's report card went up and the challenges that remain for trade.

Quebec, like Canada, pulled itself from a C- to an A in the annual Canadian Federation of Independent Business (CFIB) interprovincial report card.

The small business advocacy group released the report card and highlighted trade barriers, restrictions and other aspects of concern for small businesses in Canada.

In 2025, Quebec lagged well behind provinces from BC to Ontario and received a 6.0 out of 10 score. In the 2026 report card, Quebec is at the top of the pack with a 9.5 score, only bested by Manitoba (9.8), New Brunswick (9.7), Saskatchewan (9.7) and Nova Scotia (9.6).

However, Quebec got dinged a number of times in the report. In particular, “Quebec is repeatedly cited as one of the more difficult provinces to operate in, largely due to language laws, complex licensing, and regulatory hurdles,” the report reads.

Lead author Keyli Loeppky said the Canadian mutual recognition agreement is the main reason for Quebec’s and Canada’s increased scores.

“What this means is that goods that are sold in other parts of the country can be sold in Quebec now without additional requirements: no paperwork, no extra fees, no extra testing,” she told CTV News. “That makes it easier for businesses across Canada to expand into Quebec, but it also provides more choice for consumers who are looking into certain products.”

• READ MORE: Feds, most provinces get top marks on internal trade — but more work to be done

The inability of Quebec to lift the prohibition on direct shipment of wine, beer and spirits from other provinces, and Quebec’s implementation of exceptions to the Canadian Free Trade Agreement are negative points brought up in the report card.

“They’re basically taking themselves out of the equation on free trade on a number of items that other provinces are participating in,” said Loeppky. “So that’s one area that they still have lots of room to improve.”

The federal government, on the other hand, eliminated all exceptions to the CFTA and New Brunswick and Manitoba were able to lift the ban on direct alcohol deliveries.

Last July, the Canadian premiers met and set a deadline to lift direct-to-consumer alcohol sales, but May came and went and Quebec, like many provinces, missed the deadline.

Loeppky acknowledged that Quebec’s place as the sole French-language jurisdiction in continental North America includes a variable for businesses, but that there are ways to make things easier for those wanting to do business in the province.

“Making sure that the compliance requirements are clearly laid out, that any enforcement officers focus on education over enforcement, and they’re not imposing penalties when the most important thing is about education and making sure that we can improve continuously for these businesses,” she said. “If businesses have such steep obstacles that it doesn’t make sense to expand into the province, they’ll just avoid doing so.”

An anecdote cited in the report card illustrated the point.

“We have brick-and-mortar stores in Ontario and Alberta. We bought a competitor who was based out of Quebec, and we had to close it because running a location in Quebec was too complicated,” the retail business owner said. ”There is proven market demand for us to be there, but we don’t have the time or expertise to figure out how.”