OTTAWA, ON, Oct. 21, 2026 /CNW/ -- 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:

• assess the impacts of regulatory proposals on competitiveness
• remove outdated rules as quickly as possible
• use recognized national or international standards by default
• regularly review regulations to ensure they remain effective and up to date

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.

Quotes

"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

"Small business owners spend countless hours on process steps and paperwork that takes them away from serving customers and growing their business, so we're pleased to see the federal government taking red tape reduction seriously. Introducing a series of measures, including a two-for-one rule, where government reduces regulatory burden costs by $2 for every $1 added, is a meaningful step that will help lessen the regulatory burden. We look forward to working with the government to make sure these changes delivers real, measurable savings for entrepreneurs."

  -    Dan Kelly, President and Chief Executive Officer, Canadian Federation of Independent Business

"Government red tape imposes real costs on Canadian businesses, consuming time and resources that could otherwise be invested in innovation, job creation and growth. The Canadian Chamber of Commerce welcomes the President of the Treasury Board's new Cabinet directive to measure the cost of regulatory burden and establish a systematic approach to reducing it. Since last year's Red Tape Summit, the Canadian Chamber and our members have worked closely with the Treasury Board of Canada Secretariat to identify unnecessary regulatory requirements and barriers to doing business. This directive is an important step toward a more efficient, predictable and competitive regulatory environment. The next priority is translating these commitments into measurable reductions in red tape so businesses can spend less time navigating paperwork and more time investing, hiring and growing Canada's economy."

  -    Candace Laing, President and Chief Executive Officer, Canadian Chamber of Commerce

Quick Facts

• The New Cabinet directive takes effect on December 31, 2026, replacing the 2018 Cabinet Directive on Regulation.
• Supplementary resources that will outline requirements for developing regulatory proposals will be made available shortly. Key obligations from the current directive related to good regulatory practices will continue to apply.
• Under the new Cabinet directive, regulators must uphold all obligations to First Nations, Inuit, and Métis communities.
• The directive also requires regulatory proposals and decisions to be based on an assessment of cost, benefit and risk, as well as impacts on competitiveness and diverse groups of Canadians.
• On December 3, 2025, the President of the Treasury Board hosted a Red Tape Reduction Summit in Ottawa where he launched horizontal red tape reviews, building on the 60-day Red Tape Review in Summer 2025.
• On October 7, 2026, the Government of Canada introduced Bill S-7, the Cutting Red Tape for All Canadians Act, which targets amendments to 31 pieces of legislation to remove regulatory burden and red tape.
• Since the publication of the September 8, 2025, Red Tape Progress Reports, the government has continued to advance the nearly 500 identified achievements and initiatives. To date, more than 160 of these have been completed and implementation remains underway across departments and agencies.

Related Products

• Government of Canada Introduces Legislation to Reduce Red Tape and Support Economic Growth and Competitiveness

Associated Links

• Cabinet Directive on Regulatory Competitiveness and Red Tape Reduction
• Cutting Red Tape for all Canadians Act

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SOURCE Treasury Board of Canada Secretariat