Government of Canada launches new directive to reduce red tape and strengthen competitiveness

Government of Canada launches new directive to reduce red tape and strengthen competitiveness

October 21, 2026 – Ottawa, Ontario – Treasury Board of Canada Secretariat

Following the introduction of the Cutting Red Tape for all Canadians Act, the Government of Canada is taking further action to eliminate unnecessary regulatory burden and strengthen competitiveness.

Today, the Honourable Shafqat Ali, President of the Treasury Board, announced a new Cabinet Directive on Regulatory Competitiveness and Red Tape Reduction.

The Directive changes the foundation of how the government creates regulations. It will require regulators to reduce regulatory burden costs by $2 for every $1 added. In addition, it requires regulators to:

By improving the predictability and efficiency of federal regulations, the government is making it easier for businesses to invest, innovate and grow, while maintaining effective protections for the health and safety of Canadians and the environment. 

“Canada continues to reinforce its position as a destination to invest, innovate, and do business. Building on the Cutting Red Tape for all Canadians Act, this new directive modernizes our regulatory system and also supports economic growth and competitiveness while maintaining strong protections for Canadians and the environment.”

   - The Honourable Shafqat Ali, President of the Treasury Board