Envisioned internal free trade will not completely eliminate regulatory duplication in Canada, but the federal government has pledged to rein in its oversight in most areas where it overlaps with provincial/territorial rules for inter-jurisdictional commerce. A consultation process has now been launched to gather stakeholder feedback on where it might be necessary to continue enforcing federal requirements and how to compare the essence of federal and provincial/territorial intentions.

Parliament passed the Free Trade and Labour Mobility in Canada Act earlier this summer, thus establishing the federal government’s broad intent to defer to provincial/territorial regulations except where deemed necessary to protect: human health, safety or security; the environment; or consistent nationwide social and economic policy. Yet-to-be-developed regulations under the new Act will spell out how the need for federal intervention will be determined, and how the federal government will assess the adequacy of provincial/territorial regulations to meet its conditions.

“We are listening to and answering the calls from business and industry to remove barriers to trade between Canada’s provinces and territories,” maintains Chrystia Freeland, Canada’s Minister of Transport and Internal Trade. “We are working with them every step of the way to remove the federal red tape and give Canadians lower prices and more choice.”

The Act generally clarifies that a product, commodity or service that meets the requirements of the province/territory where it originates will be acceptable to federal regulators. Some current sets of duplicate rules with potential implications for commercial real estate, land development and facilities management include regulations governing:

• energy efficiency of products and equipment;
• the transportation of hazardous waste and recyclable materials and some types of non-hazardous waste across provincial/territorial boundaries; and
• professional standards for land surveyors.

As well, both the federal and provincial/territorial governments impose similar types of rules related to food safety, commercial vehicle operations and protection of wild animals and plants.

The federal government is now accepting written comments, which can be submitted until Aug. 22, and is planning a series of in-person and virtual discussion forums with identified stakeholder groups. The Canadian Chamber of Commerce will help to coordinate the latter exercise, promised to include economic sectors such as agriculture and agri-food, manufacturing, labour and transportation.

It’s expected the regulations will be published in the fall of 2025. The Act will not come into force until the regulations are finalized.