New trade deal to chop red tape, knock down trade barriers across Canada

A new deal promises to cut red tape and ramp up the possibilities for trade between provinces, according to B.C. officials.

VICTORIA — A trade agreement has been signed between all provinces, territories and the federal government to bring down trade barriers, allowing businesses to sell their products across Canada.

Ravi Kahlon, British Columbia’s minister of jobs and economic growth, announced the agreement in Victoria, although it was signed by the country’s trade ministers at a meeting in Yellowknife on Wednesday.

The B.C. government proposed and chaired the national initiative for the Canadian Mutual Recognition Agreement, and Kahlon says it’s the largest red tape reduction in Canada’s history.

The agreement will take effect next month and applies to thousands of products, although it excludes food, beverages, tobacco, plants, and animals.

Kahlon says global inflation, and instability and chaos coming from the Trump administration have provided Canadians with new urgency to tackle interprovincial trade barriers.

A statement on the agreement says it’s based on a simple principle: if a good can be sold legally in one province or territory, in can be sold in another without extra rules or approvals.

“This eliminates the need for businesses to navigate thousands of requirements across fourteen jurisdictions.” the statement says.

The Canadian Federation of Independent Business says in a statement that it applauds the signing of the agreement, saying it’s a landmark achievement that will finally start breaking down costly internal trade barriers.

“The next phase should include expanding the mutual recognition agreement to services, food products, and alcohol, which still face significant internal trade barriers,” it says.

This report by The Canadian Press was first published Nov. 19, 2025.

The Canadian Press