Canada’s government launched a comprehensive review of federal regulations Tuesday, aiming to eliminate outdated rules and reduce bureaucratic burden on businesses as Prime Minister Mark Carney seeks to deliver on promises to streamline government and boost economic growth.
Treasury Board President Shafqat Ali announced the initiative, requiring all federal ministers to examine regulations within their departments and propose specific measures to cut red tape within 60 days.
“Regulations play a key role in protecting the health and safety of Canadians — but to stay effective, they must be regularly reviewed,” Ali said in a statement. “Cutting unnecessary red tape is essential to unlocking Canada’s full economic potential.”
The review targets outdated regulations, duplicated provincial rules, and complex service delivery processes across government departments including Transport Canada, Natural Resources Canada, and Innovation, Science and Economic Development Canada.
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“Canada’s new government has a mandate to spend less and invest more,” Carney said in a statement. “To that end, we will remove red tape by eliminating outdated regulation. It’s time to make government more efficient, make its processes more effective, and to catalyze more private capital so we can build the strongest economy in the G7.”
The Canadian Federation of Independent Business estimates regulatory compliance costs businesses $51.5 billion annually across all government levels, with $17.9 billion attributed specifically to red tape. The average business spends 735 hours yearly on regulatory compliance, including 256 hours on unnecessary paperwork.
The newly created Red Tape Reduction Office will oversee the review, building on existing “one-for-one” rules that require agencies to eliminate one regulation for each new rule imposed on businesses.
The 60-day timeline means initial findings are expected by early September, as Carney’s government seeks to demonstrate quick action on economic policy amid ongoing trade tensions with the United States.
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