On April 28, 2006, the premiers of British Columbia and Alberta signed the Trade, Investment and Labour Mobility Agreement (British Columbia, Ministry of Economic Development, 2006f) with the objective of creating a seamless economic region between the two provinces.

The agreement (TILMA) was born out of the failure of the national Agreement on Internal Trade (Canada, Internal Trade Secretariat, 1995)-an agreement between all Canadian jurisdictions that came into force in 1995 with the objective of establishing an open, efficient, and stable domestic market.

Domestic trade plays a significant role in determining the level of prosperity in Canada. Interprovincial trade barriers lead to misallocation of capital and labor as they prevent businesses and individuals from allocating their resources to the most beneficial use. Free trade eliminates artificial trade barriers and impediments which waste resources and time for those doing business in other provinces.