Canada Releases Regulations for Free Trade and Labour Mobility Act

Trade Update • Nov. 26, 2025

Key Points

• Regulations take effect January 1, 2026 to reduce federal barriers to interprovincial trade.
• Federal rules will recognize comparable provincial and territorial requirements for goods and services.
• Certain provincially licensed workers can obtain equivalent federal authorization with required conditions.
• Food safety rules and supply-managed products (dairy, poultry, eggs) remain excluded.
• A government guide for businesses will be released December 2025.

The Government of Canada released new regulations under the Free Trade and Labour Mobility in Canada Act, following Royal Assent on June 26, 2025. The measure supports efforts to streamline interprovincial trade and reduce duplicative compliance for businesses.

The regulations outline how federal departments will recognize comparable rules from provinces and territories and how workers can qualify for corresponding federal occupations. The updated framework positions the federal government as an early adopter of broad recognition measures across Canada.

Recognition of Provincial and Territorial Trade Requirements

Comparable Federal Standards

The Act recognizes goods and services that meet provincial or territorial standards as compliant with comparable federal interprovincial trade requirements. Federal requirements still exist, but businesses can meet them through equivalent provincial or territorial certifications.

Covered areas include:

• Physical properties such as size, weight, and material composition
• Performance standards such as safety or energy efficiency
• Activities or processes such as packaging, labeling, inspection, testing, and sampling

Example

An appliance manufacturer certified under a provincial energy efficiency standard can have that certification recognized by Natural Resources Canada for the comparable federal requirement.

Labour Mobility Provisions

Eligible Occupations

Workers authorized by a province or territory can acquire related federal authorization for corresponding occupations. This includes roles such as:

• Land surveyors
• Locomotive engineers
• Train conductors and yard foremen

Conditions for Authorization

Federal regulators may require:

• Proof of good standing
• Payment of required fees
• Completion of exams or assessments for safety-sensitive roles
  

Locomotive engineers, for example, must pass federal examinations before receiving authorization.

Occupations Not Covered

Roles regulated solely by provinces or territories remain outside the legislation. This includes doctors, nurses, construction workers, and veterinarians. Occupations regulated solely by the federal government, such as immigration and citizenship consultants, are also excluded.

Exceptions to the Act

Federal Food Safety Requirements

The Act does not apply to food commodities governed by the Safe Food for Canadians Act. Stakeholders supported keeping federal food safety oversight in place due to:

• Strong science-based protections
• National inspection and enforcement powers
• Recognition from international markets

Canada’s food export sector relies on the federal system to maintain its reputation and market access.

Supply-Managed Sectors

Requirements that support supply management and collective marketing for dairy, poultry, and eggs remain outside the Act. Federal measures under related legislation continue to protect the system that balances supply and demand and ensures consistent access to high-quality products.

Additional Resources

A guide for businesses and service providers will be available in December 2025 through the One Canadian Economy page to help organizations understand how the Act and its regulations apply to their operations.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.