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Canada Signs B.C.-Led Mutual Recognition Deal to Remove Many Internal Trade Barriers

The pact lets goods approved in one province be sold nationwide without duplicate testing starting in December.

Overview

  • All provinces, territories and the federal government signed the Canadian Mutual Recognition Agreement, with trade ministers meeting in Yellowknife this week.
  • The agreement applies to thousands of products across Canada’s 14 jurisdictions and excludes food, beverages, tobacco, plants and animals.
  • If a product is lawfully sold in one province or territory, it can be sold elsewhere without additional testing, certification or approvals unless a listed exception applies.
  • The rules cover the sale of goods such as composition and labelling, while licensing requirements, age restrictions and who can sell a product remain unchanged.
  • Business groups welcomed the move and urged expansion to services, food and alcohol, while government-cited analysis estimates potential GDP gains of up to 7.9% or about $200 billion annually.