Ontario Introduces Draft Regulation to Unlock Free Trade Within Canada
December 15, 2025
The province is taking the next steps to implement mutual recognition of goods and services from other reciprocating Canadian jurisdictions by publishing a draft regulation under the Ontario Free Trade and Mobility Act, 2025 (OFTMA). The mutual recognition of goods and services will play a substantial role in supporting economic integration across Canada and removing internal trade barriers that cost the economy up to $200 billion every year.
“For decades, red tape and burdensome regulations have held Ontario’s economy back, increasing the cost of goods and services for manufacturers and families alike and limiting the ease with which Ontario-made products could be traded with our provincial and territorial partners,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Mutual recognition will play a pivotal role in unlocking new market opportunities for Ontario goods and services, and further advance Ontario’s leadership in strengthening trade security and diversification.”
A key component of the government’s Protect Ontario Through Free Trade Within Canada Act, 2025, which was passed in June 2025, Ontario’s approach to mutual recognition ensures that if a good or service meets the regulatory requirements in other parts of Canada, it will be recognized here in Ontario. To activate its mutual recognition framework, Ontario has introduced a new draft regulation that will allow the province to recognize goods and services from other Canadian jurisdictions, provided those jurisdictions are taking similar actions at home. Ontario’s approach to mutual recognition is designed to be both ambitious and reciprocal:
- Goods approved for sale or use in a reciprocating jurisdiction will be treated as if they have met Ontario’s standards and will not require additional testing, approvals or fees.
- Businesses that are authorized to provide a service in a reciprocating jurisdiction will be entitled to the equivalent authorization in Ontario.
- The regulation will clarify that OFTMA’s mutual recognition rules will prevail when there is a conflict with other Ontario laws.
- The regulation will set out parameters to guide implementation of mutual recognition and clarify that Ontario laws on how goods are sold or used will continue to apply.
The draft regulation is posted on the Ontario Regulatory Registry and is open to feedback from the public, regulators and industry stakeholders through a 45-day consultation period.
“By implementing mutual recognition under the Ontario Free Trade and Mobility Act, we’re moving at speed and encouraging a pan-Canadian pivot to mutual recognition which will unlock new domestic markets for Ontario businesses,” said Stephen Crawford, Minister of Public and Business Service Delivery and Procurement. “This means less paperwork and lower costs, faster approvals and market entry, and more customers across Canada for Ontario‑made products and services. Our Team Canada approach accelerates growth and jobs while keeping clear rules in place for safety and for how goods are sold and used.”
While Ontario’s new mutual recognition rules will focus on goods and services, the province is also making significant progress as a national leader when it comes to streamlining labour mobility to help workers from other parts of Canada work and live in Ontario. Opening up opportunities for in-demand professions will create a more unified and competitive Ontario and Canadian workforce. This means that qualified doctors, architects, engineers, land surveyors, electricians and more can practice their profession in Ontario for up to six months while completing registration with their respective regulatory body.
These expanded “As of Right” rules also help strengthen Ontario’s health-care workforce by making it easier for skilled health professionals to work in the province while also supporting patients who will benefit from faster access to care and a more robust health-care team across settings such as hospitals, long-term care homes and community settings.
Starting January 1, 2026, Canadians in certified professions will be able to begin working in Ontario within 10 business days, once a regulator confirms credentials and requirements. “As of Right” rules will apply across professions covered by more than 50 regulatory authorities and 300 certifications, including 16 additional health regulated professionals.
The proposed regulation on mutual recognition builds on the momentum of November’s Committee on Internal Trade meeting, at which federal, provincial, and territorial partners signed the Canadian Mutual Recognition Agreement on Goods under the Canadian Free Trade Agreement and Ontario affirmed its commitment to make free trade a reality across the country. Ontario will continue working with other provinces and territories and the federal government to fully implement this agreement, and in the meantime will continue moving forward to implement mutual recognition with reciprocating jurisdictions.
As Canada’s largest interprovincial trader, Ontario is unlocking access to new internal markets and customers in the face global market instability and volatility. By eliminating the need for businesses to meet multiple sets of regulatory requirements, Ontario is reducing red tape and accelerating market access for Ontario businesses. Mutual recognition slashes compliance costs, speeds up approvals, drives efficiency and increases competitiveness for businesses. The province encourages all Canadian jurisdictions to follow with the same degree of speed and ambition as Ontario.
