Provinces and territories sign deal to ease interprovincial trade barriers

All provinces and territories have signed a new agreement with the federal government aimed at reducing interprovincial trade barriers and making it easier for businesses to sell goods across Canada.

“When threats to Canada’s economic security land at our doorstep, we’re at our best when we work together as one country,” B.C. Premier David Eby said in a statement. “That’s why our government has led the effort to make it easier for businesses to grow and create good jobs across provincial and territorial lines. This is part of our work to build an economy that’s less reliant on the United States and works better for all Canadians.”

The Canadian Mutual Recognition Agreement (CMRA) was proposed and chaired by the B.C. government and signed Nov. 19 in Yellowknife by federal, provincial and territorial trade ministers. It is being billed as one of the largest red tape reduction efforts in the country’s history.

“This is the largest set of red tape reduction in Canada’s history, and it’s just the beginning,” said Ravi Kahlon, B.C.’s minister of jobs and economic growth. “We’re committed to continuing to work with our partners to support the free movement of labour, alcohol, financial and other services to make it easier to trade within our borders, and reduce our dependence on the United States. B.C.’s businesses are among the best in the world, and I can’t wait to see more of them expand their sales across Canada.”

Once implemented in December 2025, the agreement will mean goods legally sold in one province can be sold in any other without additional testing or certification. Food products are excluded. Exceptions will be clearly identified by each jurisdiction.

“Today’s agreement is a win for every business that builds, ships, or sells across provincial lines,” said Bridgitte Anderson, president and CEO of the Greater Vancouver Board of Trade. “By embracing mutual recognition, we are building one unified Canadian market with smart, modern rules that let goods move freely. This deal will benefit consumers, strengthen competitiveness, and help our companies scale. We need to keep building on this momentum to make it easier to do business across the country.”

The B.C. government says the CMRA will cover thousands of products, including clothing, toys, health technologies, industrial goods, tires and vehicles.

The agreement follows other provincial initiatives supporting interprovincial trade, including the Economic Stabilization (Tariff Response) Act and various memorandums of understanding on labour mobility, alcohol sales and electrical grid connections.

Economic analysis suggests mutual recognition could boost Canada’s GDP by up to 7.9 per cent, unlocking as much as $200 billion annually.