Canada announced a Cabinet Directive on Regulatory Competitiveness and Red Tape Reduction on October 21. The framework is scheduled to take effect December 31, replacing the 2018 Cabinet Directive on Regulation and changing the instructions federal regulators use when developing and reviewing rules.

Under the new directive, departments must seek to reduce regulatory burden costs by two dollars for every dollar added. Regulators are also directed to assess competitiveness effects, remove outdated requirements, use recognized national or international standards by default and review regulations regularly.

The directive retains broader safeguards. Regulatory proposals and decisions must consider costs, benefits and risks as well as effects on different groups, and federal obligations to First Nations, Inuit and Métis communities continue to apply. The government says health, safety and environmental protections remain part of the framework.

Supplementary guidance for preparing proposals is still expected. The directive also follows the October 7 introduction of Bill S-7, which targets amendments across 31 statutes. The bill and the Cabinet directive are separate measures, and the announcement alone does not demonstrate the amount of paperwork or cost that businesses will ultimately avoid.