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Clarification: The OECD study, Policies for Stronger and More Inclusive Growth in Canada, was published in June, 2017, not this year as originally reported.

A messy tangle of regulatory requirements continues to weigh on the private sector in Canada, part of a broader dislocation between provinces that falls particularly heavily on smaller firms, one business association says.

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“There are some market distortions that need to be dealt with,” said Ted Mallett, vice-president and chief economist at the Canadian Federation of Independent Business, which represents over 110,000 firms.

The comments are in line with long-standing complaints made by various small businesses and their representatives, who say that the administrative burdens tied to moving goods within Canadian borders are becoming increasingly onerous.

Policy failures come in addition to a complicated tax regime that is difficult for small businesses to navigate. Small companies tend to be more burdened by added administrative costs than larger ones, Mallett said.