The Ontario government stated that 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."

TORONTO — The Ontario government announced that it 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). In a press release, the Ontario government stated that 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 reportedly ensures that if a good or service meets the regulatory requirements in other parts of Canada, it will be recognized as well 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 as well. Ontario’s approach to mutual recognition is designed to be 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.

“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.”

By trying to eliminate the need for businesses to meet multiple sets of regulatory requirements, Ontario is trying to reduce red tape and accelerate market access for Ontario businesses.

“We’re making it easier for Canadians to move, work and earn a paycheque anywhere in this country, while strengthening Ontario’s economy and competitiveness. This is about unlocking opportunity and building a more resilient, unified Canada that can deliver the nation-building projects we need to protect against U.S. tariffs and global economic uncertainty,” said David Piccini, Minister of Labour, Immigration, Training and Skills Development.