The Free Trade and Labour Mobility in Canada Act Regulations

Across the country, there is a consensus around the urgent need to strengthen the Canadian economy and make it easier for business and Canadians to trade goods and services by removing barriers to interprovincial trade.

To support the removal of federal barriers to interprovincial trade, the Government of Canada introduced the Free Trade and Labour Mobility in Canada Act (“Act”), which received Royal Assent on June 26, 2025.

The Government of Canada developed the Free Trade and Labour Mobility Act regulations to help clarify the application of the Act, including exceptions, conditions and restrictions ahead of the Act coming into force on January 1, 2026.

The regulations will make the Government of Canada one of the first jurisdictions in Canada to recognize all comparable requirements of every province and territory through legislation.

Recognition of provincial and territorial requirements for goods and services

In some cases, similar federal provincial or territorial government rules and standards exist for businesses selling and buying the same goods or services. The Act provides a framework to reduce the burden of these duplicative rules, freeing trade across provincial and territorial borders.

Under the Act, a good or service produced, used, or distributed in line with requirements of a province or territory is recognized as meeting comparable federal interprovincial trade requirements. The federal requirement remains in place, but would be considered to be met if it meets the comparable provincial or territorial requirement.

These requirements could include those relating to:

• A good’s physical properties (e.g., size, weight, composition),
• A good or service’s performance (e.g., its energy efficiency, safety performance), or
• An activity or process related to a good or service (e.g., its production, packaging, labelling, inspection, sampling, testing).

For example, under the Act, an appliance manufacturer that meets provincial requirements for energy efficiency would have that certification recognized by Natural Resources Canada as meeting the comparable federal requirement.

Labour mobility

The Free Trade and Labour Mobility in Canada Act enables a worker authorized by a province or territory to work and obtain a corresponding licence or certificate within the federal jurisdiction.

Occupations benefitting from the Act include land surveyors, locomotive engineers and related professions such as train conductors and yard foreman. Occupations not covered by this legislation include those that are regulated solely by provinces and territories, such as doctors and nurses, construction workers, and veterinarians, as well as those regulated solely by the federal government (i.e., immigration and citizenship consultant).

While the Act enables the recognition of provincial or territorial authorizations, a set of conditions must be followed in order to obtain the federal authorization to guarantee the quality of services offered to the public and ensure their safety. For example, regulatory bodies may require proof of good standing, payment of all applicable fees, including licenses and membership dues. In some cases, passing an exam or assessment may be required before receiving federal authorization. This is the case for locomotive engineers or those working in related professions that correspond with federal occupations. Those seeking authorization as a locomotive engineer, require successful examination and assessment results to be authorized federally.

Exceptions to the Act

The Government of Canada has incorporated feedback from industry, businesses and labour unions in the regulations to ensure that the Free Trade and Labour Mobility in Canada Act does not apply to areas where there is an unacceptable risk to the health, safety and security of Canadians, their social and economic well-being and the environment.

There are two main exceptions to the Free Trade and Labour Mobility in Canada Act.

a) Federal standards for food commodities

The Free Trade and Labour Mobility in Canada Act will not apply to food safety requirements for products under the Safe Food for Canadians Act.

Industry stakeholders, provinces, and territories expressed strong support for the federal food system to remain the basis of food trade in Canada.

The Safe Foods for Canadians Act is built on stringent, science-based international food safety and animal welfare standards. It allows the Canadian Food Inspection Agency to know who is trading food in Canada and gives it oversight powers to assess business compliance, inspect and sample food, and to take enforcement action when non-compliance is found – protecting the health and safety of Canadians.

The system also protects Canadian exports by maintaining a high level of confidence in Canada’s food safety system. Trading partners grant Canadian businesses access to their markets based on regular assessments of the strength and integrity of Canada’s federal food system. With a food export market of over $64 billion a year, preserving the existing system is paramount to Canada’s continued reputation as a reliable and high-quality food producer and exporter, and to our continued ability to access, diversify and grow our food export markets.

b) Collective marketing and supply management for poultry, dairy and egg products

The Free Trade and Labour Mobility in Canada Act will not apply to federal requirements that support the supply management system and collective marketing, including requirements under the Agricultural Products Marketing Act, Canadian Dairy Commission Act, and Farm Products Agencies Act.

Supply management ensures Canadian consumers have access to a continuous and adequate supply of high-quality dairy products, poultry and eggs, while supporting fair returns for Canadian farmers.

This exception is necessary to avoid any unintended consequences for the supply management system, which relies on complementary provincial and federal measures to balance supply and demand across the country.

Additional information

To help businesses and other stakeholders understand how the Act and Regulations will apply to them, a Guide for Businesses and Service Providers will be available in December 2025 on the One Canadian Economy page of the Government of Canada website.