Trade of tens of thousands of goods across Canada’s 14 jurisdictions will soon be free after an agreement has been signed between all provinces, territories and the federal government to allow businesses to sell their products across Canada.
Ravi Kahlon, British Columbia’s minister of jobs and economic growth, announced the deal in Victoria, although it was signed by the country’s trade ministers at a meeting in Yellowknife on Wednesday.
The B.C. government proposed and chaired the national initiative for the Canadian Mutual Recognition Agreement, and Kahlon said it’s an important step for cross-Canada trade.
“And this is the largest red tape reduction in Canada’s history, and it’s just the beginning,” he told reporters.
The agreement will take effect next month and applies to most products, although it excludes food, beverages, tobacco, plants and animals.
Kahlon said B.C. is also advocating for an expansion under the agreement to include food and services.
Global inflation, and instability and chaos coming from the Trump administration have provided Canadians with new urgency to tackle interprovincial the trade barriers, the minister said.
For consumers, Kahlon said it will mean more choices, competitive pricing and the same, trusted standards across the country.
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“For businesses, it means they can sell across Canada, save time and costs, have a bigger reach, grow and create new jobs,” he said.
A statement on the agreement said it’s based on a simple principle: if a good can be sold legally in one province or territory, it can be sold in another without extra rules or approvals.
“This eliminates the need for businesses to navigate thousands of requirements across 14 jurisdictions,” the statement said.
The Canadian Federation of Independent Business said in a statement that it applauds the signing of the agreement, which it called a landmark achievement that will finally start breaking down costly internal trade barriers.
“The next phase should include expanding the mutual recognition agreement to services, food products and alcohol, which still face significant internal trade barriers,” it said.
Bridgitte Anderson, the CEO of the Greater Vancouver Board of Trade, told the news conference on Wednesday that for many years, businesses have been held back by a patchwork of rules that sometimes makes it harder to trade across provincial boundaries than international borders.
“The economic cost has been well documented,” she said. “Internal trade barriers are estimated to reduce Canada’s GDP by tens of billions of dollars each year.
“Given the actions of our largest trading partner, trade diversification is critical,” she said of the United States.
The government statement said the agreement covers rules on the sale of goods, such as composition and labelling, but does not affect licensing requirements, age restrictions or who can sell a product.
It said businesses will save time and money by avoiding duplicative testing, certification and paperwork.
“Small and medium-sized enterprises will gain easier access to new markets. Consumers will enjoy more choice and better prices.
“Economic analysis suggests mutual recognition could increase Canada’s GDP by up to 7.9 per cent, unlocking as much as $200 billion annually and improving productivity by reducing regulatory delays and freeing resources for innovation and growth,” the statement said.
The agreement doesn’t interfere with a government’s rights to regulate for health, safety and environmental protection.
Businesses won’t need to apply, because if a product meets the rules in one jurisdiction, it can be sold elsewhere unless an exception is listed.
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