Ontario Moves to Expand Free Trade Within Canada Through Mutual Recognition Framework
Ontario Free Trade Within Canada Moves Forward With Mutual Recognition Plan
TORONTO — The Ontario government is taking new steps to reduce internal trade barriers and strengthen Canada’s domestic economy by advancing a framework that would allow goods and services approved in other provinces and territories to be recognized in Ontario.
On December 15, the province published a draft regulation under the Ontario Free Trade and Mobility Act, 2025, proposing the mutual recognition of goods and services from other Canadian jurisdictions that take similar reciprocal action. The move is intended to eliminate duplicative regulations that add costs for businesses and consumers and slow down interprovincial trade.
According to the province, internal trade barriers cost the Canadian economy as much as $200 billion annually, increasing prices for families and limiting market access for businesses.
“For decades, red tape and burdensome regulations have held Ontario’s economy back,” said Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade. “Mutual recognition will play a pivotal role in unlocking new market opportunities for Ontario goods and services, and further advance Ontario’s leadership in strengthening trade security and diversification.”
How Mutual Recognition Would Work
Under the proposed regulation, goods and services legally approved in a reciprocating province or territory would be treated as meeting Ontario’s regulatory standards, eliminating the need for additional testing, approvals, or fees.
The regulation would also allow businesses authorized to provide services elsewhere in Canada to receive equivalent authorization in Ontario. In cases where provincial laws conflict, the Ontario Free Trade and Mobility Act would prevail, while Ontario’s rules on how goods are sold or used would continue to apply.
The draft regulation has been posted to the Ontario Regulatory Registry and is open for public, industry, and stakeholder feedback during a 45-day consultation period.
“By implementing mutual recognition under the Ontario Free Trade and Mobility Act, we’re moving at speed and encouraging a pan-Canadian pivot to mutual recognition,” said Stephen Crawford, Minister of Public and Business Service Delivery and Procurement. “This means less paperwork and lower costs, faster approvals and market entry, and more customers across Canada for Ontario-made products and services.”
Labour Mobility Reforms Moving Ahead
In parallel with the goods and services framework, Ontario is continuing to expand labour mobility rules that make it easier for workers from other provinces to live and work in Ontario.
Under expanded “As of Right” provisions, professionals such as doctors, nurses, engineers, electricians, and other regulated workers can practise in Ontario for up to six months while completing registration with their regulatory body. Beginning January 1, 2026, qualified workers in certified professions will be able to start working in Ontario within 10 business days once credentials are confirmed.
“Our government is removing unnecessary barriers so physicians, nurses and other regulated health professionals from other provinces can start working in Ontario faster,” said Sylvia Jones, Deputy Premier and Minister of Health.
The labour mobility framework applies to more than 50 regulatory authorities and 300 certifications, including 16 additional health-care professions.
National Momentum on Internal Trade
Ontario’s proposal builds on momentum from November’s Committee on Internal Trade meeting, where federal, provincial, and territorial governments signed the Canadian Mutual Recognition Agreement on Goods under the Canadian Free Trade Agreement.
As Canada’s largest interprovincial trader, Ontario says reducing regulatory duplication will help businesses access new domestic markets, particularly amid global economic uncertainty.
“We’re making it easier for Canadians to move, work and earn a paycheque anywhere in this country,” said David Piccini, Minister of Labour, Immigration, Training and Skills Development. “This is about unlocking opportunity and building a more resilient, unified Canada.”
Ontario has signed economic cooperation agreements with 10 provinces and territories since April 2025 and received an A grade for interprovincial cooperation from the Canadian Federation of Independent Business.
The province says it will continue working with other governments to fully implement mutual recognition nationwide, while encouraging jurisdictions to move forward at the same pace.
SOURCE: Ministry of Economic Development, Job Creation and Trade
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