The new internal trade rules recognize provincial and territorial requirements for certain goods and services while maintaining exemptions for food safety and supply-managed sectors.
The Government of Canada has confirmed that the Free Trade and Labour Mobility in Canada Act will come into force on January 1, 2026, introducing new internal trade rules for goods and services moving across Canadian provinces and territories.
The Act received Royal Assent on June 26, 2025, and the coming-into-force date was formally established through an Order in Council published in the Canada Gazette on November 19, 2025.
As part of the Canadian government’s efforts to eliminate trade and labour mobility barriers, the Act was introduced to remove federal exceptions under the Canadian Free Trade Agreement and to launch the Canadian Internal Trade Data and Information Hub.
Internal trade plays a crucial role in the national economy, with interprovincial trade in goods and services exceeding $530 billion annually.
The government estimates that removing internal barriers could add up to $200 billion to Canada’s GDP.
The Act establishes a framework that allows the federal government to recognize provincial and territorial requirements for goods and services when they correspond to the same aspect of the good or service as the federal requirement.
For goods, provincial or territorial requirements may be recognized when they apply to:
For services, recognition applies when the provincial or territorial requirement concerns:
Certain sectors will not fall under the new internal trade recognition framework.
They will, instead, continue to operate under their existing federal and provincial regulatory structures.
Goods regulated under the Safe Food for Canadians Act are excluded from the new internal trade rules.
The federal food safety system remains the basis for food trade in Canada.
The framework does 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.
These cover poultry, dairy, and egg products.
The recognition framework does not apply to goods subject to sections B.01.042 or B.01.043 of the Food and Drug Regulations, which set federal standards for the composition and permitted ingredients of certain foods.
Foods governed under these sections remain subject to the existing federal regulatory requirements.
A Guide for Businesses and Service Providers will be published in December 2025 to explain how the recognition system under the new internal trade rules works.
Reach out to one of our trade professionals to discuss the new internal trade rules and their potential impact on your business.