The Canadian Chamber of Commerce and the Canadian Federation of Independent Business have lauded the signing of the Canadian Mutual Recognition Agreement for goods by all jurisdictions in Canada.
The agreement was signed in Yellowknife on Wednesday November 19 by the Committee on Internal Trade’s federal, provincial, and territorial trade ministers. Per this agreement, a good that can legally be sold in one province or territory may be sold in another without requiring additional approval. Additional rules may only be imposed if the rules are detailed in public annexes.
The agreement covers goods under Chapters 25 to 97 of the Harmonized System; thus, it encapsulates most manufactured and industrial products such as clothing, toys, steel, tires, and vehicles but does not cover food, beverages, tobacco, plants, and animals. Moreover, it includes rules on the the sale of goods like composition and labeling but does not encapsulate licensing requirements, age restrictions, or legitimate distributors, per the British Columbia government.
“This agreement is a positive step toward free movement of goods across the country, reducing fragmentation and lowering costs for Canadian businesses. We’re encouraged that governments have acted in unison, signaling not just bold ambitions but real follow-through, building on the positive progress we have seen over the past year,” said Candace Laing, the Chamber of Commerce’s president and CEO, in a statement. “We look forward to implementation and expansion to cover all goods. With growing uncertainty, supply chain challenges and weak consumer demand, a unified domestic market gives business a better foundation to compete and grow.”
CFIB’s director of Alberta and interprovincial affairs, Keyli Loeppky, added that the agreement marked significant progress, but “should only mark the beginning of major change.”
“We encourage Canadian governments to keep the momentum going. The next phase should include expanding the mutual recognition agreement to services, food products, and alcohol, which still face significant internal trade barriers. Removing these remaining barriers will strengthen Canada’s economy and benefit businesses and consumers alike,” Loeppky said in a statement.
Per the BC government, mutual recognition could bolster the country’s GDP by a maximum of 7.9 percent. Economic analysis revealed that up to $200 billion could be released annually; moreover, regulatory delays could be reduced and productivity enhanced.
Governments retain the right to regulate for the purposes of health, safety, and environmental protection. Public annexes and updates will be published on the Regulatory Reconciliation and Cooperation website; a user guide for businesses will be released as well.