Canada Implements Bill C-5 to Remove Interprovincial Trade Barriers

The Government of Canada implemented the Free Trade and Labour Mobility in Canada Act, known as Bill C-5, on January 1, 2026. The legislation aims to eliminate interprovincial trade barriers by requiring the federal government to recognize provincial regulations for services, goods, and worker certifications. While the act removes most barriers, exemptions remain in place for alcohol and food. To further these domestic efforts, the federal government and all provinces plan to implement a mutual recognition agreement by June.

These internal reforms occur as Canada navigates international trade instability. The Canada-U.S.-Mexico Agreement (CUSMA) is currently facing a review, with formal talks scheduled for mid-January. A July deadline will determine if the agreement is extended, terminated, or renegotiated. Meanwhile, the Canadian economy remains under pressure from existing tariffs affecting the automotive, lumber, steel, and aluminum sectors.