The Canadian Federation of Independent Business hailed the signing as a landmark step and urged expanding the mutual recognition framework to cover services, food products, and alcohol to further reduce internal barriers.

The deal is designed to let tens of thousands of goods flow freely between the 14 jurisdictions by standardizing rules so that a product sold legally in one province can be sold in another without extra approvals.

Officials say mutual recognition could boost Canada’s GDP by up to 7.9%, unlock as much as $200 billion annually, and lift productivity by cutting regulatory delays, all while preserving health, safety, and environmental protections.

The agreement grew out of British Columbia-led work within the national initiative for a Canadian Mutual Recognition Agreement and was signed by trade ministers in Yellowknife after talks in Victoria.

Business and consumer benefits include easier market access for small and medium-sized enterprises, greater consumer choice, competitive pricing, and a broader national market reach for sellers.

Victoria-based announcement by British Columbia’s minister of jobs and economic growth, Ravi Kahlon, who called it the largest red tape reduction in Canada’s history with potential to expand to food and services.

The initial scope excludes certain categories such as food, beverages, tobacco, plants, and animals, and the agreement does not change licensing, age restrictions, or eligibility to sell a product.

A national mutual recognition agreement was signed by all provinces, territories, and the federal government to reduce internal trade barriers, with provisions taking effect next month.