Reinforcing B.C.’s leadership in interprovincial trade

Press Release

Feb. 18, 2026

VICTORIA

Summary

• New Trade Recognition Act (Bill 5) will make B.C.’s interprovincial recognition framework permanent
• Bill 5 would ensure goods and services approved in other provinces can be sold or used in B.C., subject to identified exceptions, complementing current and future statutes in other provinces that recognize B.C. goods and services
• The legislation strengthens B.C.’s competitiveness by making it easier for businesses to expand across Canada and attract investment to the province

Government is introducing new legislation that, if passed, will make B.C.’s current, time-bound interprovincial recognition framework, the Economic Stabilization (Tariff Response) Act, Part 1, permanent.

The proposed Bill 5: Trade Recognition Act would further reinforce B.C.’s leadership in eliminating interprovincial trade barriers. This would ensure that goods and services lawfully sold, used or supplied in any other Canadian province can also be sold, used or supplied in B.C., unless an exception applies. This comprehensive coverage would complement legislation other provinces have passed to remove barriers for the sale of B.C. goods and services.

“This legislation would strengthen B.C.’s leadership in reducing barriers and creating opportunities for businesses of all sizes,” said Ravi Kahlon, Minister of Jobs and Economic Growth. “By moving to make mutual recognition permanent, we’re helping businesses save time and money, while increasing choice and affordability for people throughout the province. It’s a key part of our Look West strategy to diversify trade, be less reliant on the U.S. market and position B.C. to lead Canada’s economic future.”

What the legislation does

The new bill would bring British Columbia’s commitments under the Canadian Mutual Recognition Agreement (CMRA) into force under B.C. law, while offering broader coverage than the CMRA.

Under Bill 5, businesses would no longer need to redo testing, approvals or certification for goods and services that may be sold, used or provided in another province. This will lower compliance costs for businesses, improve time to market, lower prices and increase choice.

The new bill would also give businesses and people assurances that if any B.C. regulatory measures create barriers to trade, those measures can be removed or overruled. Through regulations, it would provide a concise and complete list of the regulatory exceptions that B.C. will be retaining.

Exceptions

The bill would preserve B.C.’s ability to protect, environmental, consumer, health, safety and other standards. It would not apply to certified occupations under the Labour Mobility Act, which already establishes mutual recognition. General exceptions would also apply to measures relating to Indigenous people, monopolies, taxation and incorporation requirements.

Supporting a barrier free Canadian economy

B.C. brought together Canada’s 10 provinces, three territories and the federal government in unprecedented collaboration to approve the Canadian Mutual Recognition Agreement (CMRA) on Nov.19, 2025, making it easier for businesses to sell Canadian-made goods across Canada.

B.C. has also signed economic co-operation arrangements with Ontario, Manitoba and the Yukon on labour mobility, sales of alcoholic beverages and the potential of connecting electrical grids with the Yukon.

The Province remains committed to working with partners to support the free movement of labour, alcohol, and financial and other services to make it easier to trade within Canada.

This work aligns with the Province’s Look West strategy, and its goals of diversifying trade, expanding market access, and ensuring B.C. remains a leader in Canada’s economic future.

Learn More:

• To learn more about Look West: Jobs and Prosperity for a Stronger BC and Canada, visit: https://gov.bc.ca/LookWest
• To learn more about free trade in Canada: https://www.gov.bc.ca/DomesticTrade
• For more information about B.C. legislation, visit: https://strongerbc.gov.bc.ca/legislation

A backgrounder follows.

Contact:

Ministry of Jobs and Economic Growth
Media Relations
250-880-5179

BACKGROUNDER

Facts about the new trade-response bill

• Bill 5: Trade Recognition Act builds on the foundation created by the Economic Stabilization (Tariff Response) Act (ESTRA) Part 1, keeping the parts that worked, while modernizing the framework into a permanent, long-term approach.
• ESTRA was designed as a rapid response to protect B.C. from external economic threats and reduce internal trade barriers.
• ESTRA Part 1 is set to expire May 28, 2026.
• Its purpose was to protect B.C.’s economy quickly, using a temporary framework
• The new internal trade legislation Bill 5 makes recognition permanent, with no expiry.
• Key business organizations, including the Canadian Federation of Independent Business and the Greater Vancouver Board of Trade, have expressed support for mutual recognition of goods and services within Canada.
• Greater Vancouver Board of Trade estimates that reducing internal trade barriers could generate $7.6 billion in GDP for B.C., and $1.7 billion in B.C. government revenue.
• Economic analysis published by the Macdonald Laurier Institute estimates up to a 7.9% increase in national GDP, worth between $110 billion and $200 billion annually.

Contact:

Ministry of Jobs and Economic Growth
Media Relations
250-880-5179

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