OTTAWA – Canada’s government is addressing barriers to trade of agriculture and agri-food products through targeted efforts with stakeholders, including helping businesses obtain a federal food licence to trade within Canada and abroad.
The Free Trade and Labour Mobility in Canada Act and regulations will come into force on January 1, 2026. A user guide will be available in December 2025 to help businesses and industries better understand the changes.
The Act and its associated regulations aim to achieve the following objectives:
- A good produced, used or distributed in line with the requirements of a province or territory will be recognized as meeting comparable federal requirements.
- A service provided in line with the requirements of a province or territory will be recognized as meeting comparable federal requirements.
- A worker licensed or certified by a province or territory will be able to work in a comparable occupation in federal jurisdiction.
The Act also aims to remove duplication and red tape across the country, strengthening the economy for Canadian workers, businesses, and consumers.
To protect the health, safety and security of Canadians, the regulations also list exceptions to the Act, including food regulated under the Safe Food for Canadians Act. Canada has one of the safest food safety regimes in the world, and maintaining it is vital to the health and safety of our citizens and to our trade diversification goals.
Every year, more than $530 billion worth of goods and services move across provincial and territorial borders. This is equal to almost 20% of Canada’s gross domestic product. It is estimated that eliminating all federal, provincial and territorial internal trade barriers could boost GDP by as much as $200 billion over time, which is equivalent to $5,100 per person.
The Free Trade and Labour Mobility in Canada Act received Royal Assent on June 26, 2025 and included removing all federal exceptions under the Canadian Free Trade Agreement, and launching the Canadian Internal Trade Data and Information Hub. The Act also complements recent provincial and territorial efforts to align regulatory differences, including several Memorandums of Understanding.
During the First Ministers’ meeting on November 17, the Prime Minister joined provincial and territorial premiers to discuss Building Canada Strong. Their discussion highlighted ongoing efforts to remove interprovincial trade barriers, particularly in key sectors such as housing and construction, to build one Canadian economy.
The federal government is also working with provinces and territories through First Ministers’ and the Committee on Internal Trade (CIT) to further eliminate barriers to trade and labour mobility. The Committee is currently focused on advancing mutual recognition for consumer goods, negotiating an interprovincial agreement on trucking, implementing a 30-day service standard and reducing onerous administrative requirements for labour mobility applicants.
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