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 is recognized as meeting comparable federal requirements that pertain to interprovincial trade.
• A service provided in line with the requirements of a province or territory is recognized as meeting comparable federal requirements that pertain to interprovincial trade.
• A worker licensed or certified by a province or territory can work in a comparable occupation in federal jurisdiction without additional requirements.

Examples of where the Act would apply include:

• Organic products – a product certified as organic by Quebec or British Columbia will meet Canada’s organic standards.
• Energy standards – a washing machine meeting Ontario, Quebec, or Nova Scotia’s energy efficiency standards (among others) will meet Canada’s comparable standards.
• Certification – locomotive engineers who hold a valid provincial or territorial certification will be able to have that certification recognized at the federal level and secure a corresponding federal authorization.

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

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

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.

Moving forward

The Government of Canada is developing regulations that would operationalize the Act, while continuing to protect the health, safety and security of Canadians, their social and economic well-being and the environment. The regulations will not apply if there are unacceptable risks in these areas.

Regulations will target:

1. Any exceptions to the application of the Act, if necessary to protect the health, safety and security of Canadians or the environment; and
2. Any additional criteria to assess whether a federal requirement is “comparable” to a provincial or territorial requirement.

The government consulted with Canadian industry, businesses, and labour representatives who will be directly or indirectly impacted by these changes.

These consultations helped the government better understand the needs of industry, business, and labour, and gave Canadian workers, businesses, and trading partners the opportunity to provide input, and familiarize themselves with the new regulations.

The final regulations will be published in the Canada Gazette in the fall and will be approved by Governor in Council.

Once the regulations are approved, a plain language user guide will be available for Canadian workers and businesses. This guide will explain when the Act applies, how to take advantage of it, and who to contact for help or questions.

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.