Federal Government to Consult on Free Trade and Labour Mobility in Canada Act
In a move to bolster Canada’s economy, the federal government has announced plans to consult on the Free Trade and Labour Mobility in Canada Act, a landmark legislation aimed at breaking down internal trade barriers and enhancing labour mobility across the country.
Introduced as part of the broader One Canadian Economy legislative package (Bill C-5), the Act received Royal Assent on June 26, 2025. Its primary goal is to create a more seamless and integrated national market, allowing goods, services, and skilled workers to move freely across provincial and territorial borders.
By eliminating unnecessary federal-level obstacles, the Act seeks to lower prices for consumers, expand choices, and improve productivity. It is projected to add up to $200 billion to the national economy, making it a critical step in strengthening Canada’s competitiveness on the global stage.
The legislation addresses three key areas: goods, services, and workers. Under the Act, products meeting provincial or territorial standards will automatically comply with federal requirements for interprovincial trade. Similarly, services and workers certified by one province or territory will be recognized federally, reducing redundant regulations and red tape.
For example, an organic product certified in Quebec or British Columbia will now meet federal organic standards without additional approvals. Similarly, locomotive engineers licensed in one province can work under federal authorizations without needing further certifications.
To ensure the Act is implemented effectively, the federal government has launched a nationwide consultation process. Stakeholders, including businesses, industries, and labour representatives, are being invited to provide input on the draft regulations. These consultations, which include regional roundtables and written submissions, will run until August 22, 2025.
The regulations will define what constitutes “comparable” provincial or territorial requirements and identify any necessary exceptions to protect health, safety, and environmental priorities. This collaborative approach aims to balance economic growth with public interest.
Organizations such as Speech-Language & Audiology Canada (SAC) have welcomed the initiative, highlighting its potential to improve healthcare access and innovation. SAC has also suggested simplifying provincial registration processes and standardizing entry exams to enhance workforce mobility while maintaining public protection.
The Act comes at a pivotal time, addressing long-standing calls from businesses to reduce internal trade barriers and responding to external economic pressures, such as trade disputes with the United States. The government has described the legislation as a cornerstone of its plan to build “the strongest economy in the G7” and enhance national resilience.
With consultations underway and final regulations expected in Fall 2025, the Free Trade and Labour Mobility in Canada Act represents a significant step toward aligning federal and provincial regulations. It promises to unlock economic potential, ease the movement of goods and skilled labour, and safeguard public interests for years to come.
For more details on the Act and the consultation process, visit here.
Purpose and Background
The Free Trade and Labour Mobility in Canada Act is part of the broader One Canadian Economy legislative package, introduced as Bill C-5, which received Royal Assent on June 26, 2025. The Act’s primary objective is to eliminate unnecessary federal-level obstacles to internal trade and labour mobility, recognizing comparable regulatory requirements set by provinces and territories. By doing so, the Act aims to create a more integrated and competitive national market, enabling Canadian businesses and workers to operate more freely across provincial and territorial borders.
The legislation seeks to lower prices for Canadians, increase consumer choices, and improve productivity. It is projected to add up to $200 billion to the national economy, making it a critical step in strengthening Canada’s competitiveness on the global stage. The Act acknowledges the importance of comparable regulatory requirements set by provinces and territories, ensuring that goods, services, and workers can move seamlessly across the country.
Key Provisions
The Act ensures that goods produced, used, or distributed according to the standards of a province or territory are recognized as meeting equivalent federal requirements for interprovincial trade. This provision applies to a wide range of products, from organic foods to household appliances. Services delivered in line with provincial or territorial regulations are similarly recognized at the federal level, reducing redundant regulations and red tape.
Workers licensed or certified by a province or territory can now work in a comparable federally regulated occupation without having to meet additional federal requirements. This provision aims to enhance labour mobility across the country, allowing skilled workers to practice their professions without unnecessary barriers. For example, locomotive engineers certified by a province or territory will have their credentials accepted at the federal level for corresponding federal authorizations.
Examples of Application
The Act’s provisions have wide-ranging applications across various sectors. An organic product certified in Quebec or British Columbia will automatically meet federal organic standards, eliminating the need for additional approvals. Similarly, household appliances, such as washing machines, that meet the energy efficiency regulations of certain provinces will be recognized as meeting federal standards. These changes aim to simplify the movement of goods and services across provincial and territorial borders, fostering a more integrated national market.
Development of Regulations and Consultations
To operationalize the Act, the federal government is engaging in widespread consultations with stakeholders, including industry, business, and labour representatives. These consultations aim to draft specific regulations that will define what qualifies as “comparable” provincial or territorial requirements. Additionally, the regulations will identify any exceptions necessary to protect the health, safety, and security of Canadians, as well as social, economic, and environmental priorities.
The consultation process includes regional roundtables and written submissions, with input welcomed until August 22, 2025. This collaborative approach ensures that the regulations are informed by real-world needs and will facilitate smooth implementation. The federal government is committed to balancing economic growth with public interest, safeguarding key priorities while promoting internal trade and labour mobility.
Implementation Timeline
The implementation of the Act is progressing with a clear timeline. Consultations are currently underway, with feedback solicited from a broad array of stakeholders during the summer of 2025. Final regulations are scheduled for publication in Fall 2025, operationalizing the Act and ensuring its provisions are effectively enforced.
Broader Context
The legislation responds to both long-standing calls from business and industry for reduced internal trade barriers and recent external economic pressures, including trade disputes with the United States. The government describes the Act as a critical step in building “the strongest economy in the G7” and increasing national resilience. By addressing internal trade barriers and enhancing labour mobility, the Act positions Canada to better compete on the global stage while safeguarding public interests.
For more details on the Act and the consultation process, visit here.
Conclusion
The Free Trade and Labour Mobility in Canada Act represents a significant step forward in fostering a more integrated and competitive Canadian economy. By addressing internal trade barriers and enhancing labour mobility, the Act aims to create a seamless national market where goods, services, and workers can move freely across provincial and territorial borders. With its focus on comparable regulatory requirements, the legislation not only simplifies trade and professional certification processes but also projects an economic boost of up to $200 billion, positioning Canada as a stronger global competitor.
The Act’s collaborative approach, through extensive stakeholder consultations, ensures that the regulations are balanced and aligned with public interests. As the implementation progresses, the federal government remains committed to safeguarding health, safety, and environmental priorities while driving economic growth. This legislation is a cornerstone in building a more resilient and unified Canadian economy for the future.
Frequently Asked Questions (FAQs)
What is the Free Trade and Labour Mobility in Canada Act?
The Act is part of the One Canadian Economy legislative package, introduced as Bill C-5, which received Royal Assent on June 26, 2025. It aims to eliminate internal trade barriers and enhance labour mobility by recognizing comparable provincial and territorial regulations at the federal level.
What are the main goals of the Act?
The primary objectives are to reduce internal trade barriers, enhance labour mobility, and create a more integrated national market. It seeks to lower prices, increase consumer choices, and improve productivity while adding up to $200 billion to the Canadian economy.
How does the Act impact businesses and workers?
Goods and services meeting provincial or territorial standards will be recognized federally, reducing redundant regulations. Workers certified in one province or territory can work in comparable federally regulated occupations without additional requirements, enhancing labour mobility.
What are the key sectors affected by the Act?
The Act applies to various sectors, including organic products, household appliances, and professional services. For example, organic certifications and energy efficiency standards from provinces will be recognized federally.
How is the federal government developing regulations for the Act?
The government is conducting consultations with stakeholders, including industry, business, and labour representatives, to define “comparable” requirements and identify exceptions for health, safety, and environmental priorities. Feedback is being accepted until August 22, 2025.
When will the Act be fully implemented?
Consultations are underway during the summer of 2025, with final regulations scheduled for publication in Fall 2025. This will operationalize the Act and ensure its provisions are effectively enforced.
