
Canada is taking a major step to strengthen its economy by removing barriers that make it harder for businesses to sell goods across provincial and territorial borders. The Canadian Mutual Recognition Agreement (CMRA) was signed on November 19, 2025, in Yellowknife by federal, provincial, and territorial trade ministers under the Committee on Internal Trade. This agreement creates a more seamless and competitive Canadian marketplace.
The CMRA is based on a simple principle: if a good can be legally sold in one province or territory, it can be sold in another without extra rules or approvals, unless those rules are listed in an annex. This eliminates the need for businesses to navigate thousands of requirements across fourteen jurisdictions. The agreement applies to goods under Chapters 25 to 97 of the Harmonized System, which includes most manufactured and industrial products such as clothing, toys, steel, tires, and vehicles. Food, beverages, tobacco, plants, and animals are excluded. The CMRA covers rules on the sale of goods, such as composition and labeling, but does not affect licensing requirements, age restrictions, or who can sell a product.
The benefits are clear. Businesses will save time and money by avoiding duplicative testing, certification, and paperwork. Small and medium-sized enterprises will gain easier access to new markets. Consumers will enjoy more choice and better prices. Economic analysis suggests mutual recognition could increase Canada’s GDP by up to 7.9 percent, unlocking as much as $200 billion annually and improving productivity by reducing regulatory delays and freeing resources for innovation and growth.
The CMRA preserves the right of governments to regulate for health, safety, and environmental protection. Any unique requirements can be listed in public annexes, ensuring transparency. Businesses do not need to apply to benefit. If a product meets the rules in one jurisdiction, it can be sold elsewhere unless an exception is listed. Annexes and updates will be available on the Regulatory Reconciliation and Cooperation website, along with a user guide for businesses in the new year.
By removing unnecessary trade barriers, the CMRA creates a stronger foundation for Canadian businesses to grow and innovate. To learn more and access resources, visit rct-tccr.ca.
For businesses seeking support to export, visit: https://www.britishcolumbia.ca/for-bc-businesses
For assistance with using free trade agreements, to enquire about a trade dispute, or to report a trade barrier, contact us.
Email: Trade.Policy@gov.bc.ca
Website: https://www.britishcolumbia.ca