Supporting legislation

The Free Trade and Labour Mobility in Canada Act was introduced as part of Bill C-5, the One Canadian Economy Act on June 6, 2025, and received Royal Assent on June 26. 

Across the country, there is a consensus on the urgent need to strengthen the Canadian economy and make it easier for business and Canadians to buy, sell, and transport goods and services across the country. The Act provides a framework to reduce the burden of federal rules that pertain to internal trade across provincial and territorial borders.

The Act ensures that:

• 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.

Examples of where the Act would apply include:

• Energy efficiency requirements – a washing machine meeting Ontario, Quebec, or Nova Scotia’s energy efficiency standards (among others) will meet Canada’s comparable standards.
• Certification – land surveyors who currently require a federal licence to work on federal projects will have their provincial or territorial land surveyor’s licence recognized, reducing delays and paperwork. Similarly, locomotive engineers who hold a valid provincial or territorial authorization will be able to more easily and quickly secure a corresponding federal authorization.

The Act will not apply to certain federal requirements where there are unacceptable risks to the health, safety, and security of Canadians, their social and economic well-being, the environment, or international trade goals.

Understanding the Act

Following consultations with nearly 200 business, industry and labour stakeholders from across Canada’s regions and economic sectors, the Government of Canada published the Regulations which operationalize the Act.

The Regulations clarify details about the implementation of the Act for businesses and Canadians, while mitigating any unintended risks to health, safety and the environment. Both the Act and Regulations will come into force on January 1, 2026.

To support Canadian workers and businesses, the federal government published a user guide explaining when and how the Act will apply, its advantages, and where to seek assistance or answers to questions.

Federal, provincial and territorial governments working together to deliver results for Canadians

This new Act aligns with recent ambitious efforts from provinces and territories to accelerate the recognition of regulatory differences, and helps lay the groundwork for coordinated, pan-Canadian efforts to remove internal trade and labour mobility barriers.

The Act does not impact provincial and territorial requirements, as it only applies to federal requirements that pertain to the interprovincial movement of goods, services, and workers. Businesses and workers must continue to follow relevant provincial or territorial requirements.

One Canadian Economy for workers, employers, businesses and consumers

By recognizing comparable provincial and territorial requirements, the Government of Canada is making the economy work better for Canadian workers, businesses, and consumers.

Making it easier for workers to get a federal work authorization by recognizing worker’s provincial or territorial certifications and licences for the same job benefits both workers and employers alike. This gives workers a wider range of employment opportunities and employers a broader selection of qualified candidates.

Canadians should have access to Canadian-made goods, no matter where they are in the country. Making it easier for businesses to sell their products across the country by enabling the federal recognition of comparable provincial requirements increases consumer choice and strengthens competitiveness.

Taking action on internal trade

Find out more about what else the Government of Canada is doing to remove federal barriers to internal trade and labour mobility in Canada.