As the world trade order is being reshaped, Canada is seeking to reduce its reliance on the U.S., beef up economic security and resilience in part by streamlining processes to approve national interest projects and lowering internal trade barriers. To that effect, two recent developments are worth highlighting: the federal government tabled a One Canadian Economy bBll (that still has to be voted), and Ontario passed its own bill to unleash the province’s economy.
Canada’s federal government tables “One Canadian Economy” Bill
Prime Minister Mark Carney’s Liberal government tabled a bill to reduce internal trade barriers in Canada and build the Canadian economy. Mr. Carney hopes the bill will pass by the end of the Parliamentary session June 20, pushing for the session to longer if need be.
There are 343 members of Parliament, 169 of which are affiliated to the Liberal party, 144 to the Conservative party, 22 to Bloc Québécois, 7 to the National Democratic Party (NDP) and 1 to the Green party. The bill would need 172 votes to pass.
What is the One Canadian Economy Act ?
One Canadian Economy: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, also known as Bill C-5, is a proposed piece of legislation divided into two parts:
Free Trade and Labour Mobility in Canada Act
The Free Trade and Labour Mobility in Canada Act establishes a statutory framework to remove federal barriers to the interprovincial trade of goods and services and to improve labour mobility within Canada.
Building Canada Act
The Building Canada Act aims to speed up the approval process for certain major projects that are considered important for Canada’s overall well-being, security, and economy. We’re talking about highways, ports, airports, oil pipelines, critical mineral mines and nuclear facilities. The intent is also to respect the environment and the rights of Indigenous peoples, which are recognized in Canada’s Constitution and the UN Declaration on the Rights of Indigenous Peoples.
The Bill is also intended to enhance regulatory certainty and investor confidence, bringing predictability needed for investors to put their money to work.
If you are an investor, here are a few things you should know
- Project list
Only projects named in Schedule 1 are targeted by the accelerated process under the Building Canada Act. But just because a project is listed doesn’t mean other conditions don’t have to be met. Consultation with potentially affected Indigenous peoples is required for listing projects and for project approval. - Project benchmark criteria
- Five-year limit
The government’s power (through the Governor in Council) to add projects to Schedule 1 has a time limit: it cannot be done after the fifth anniversary of the relevant section coming into force. - Transparency
Additions, changes, or deletions to Schedule 1 would be published publicly in the Canada Gazette
Many questions and challenges remain given the vast number of stakeholders, including First Nations, and the fact that projects can involve two or more provinces. So far, the federal government has said it “will not impose a project on a province.”
But first, the bill has to be approved, and once it is, it could be different from what it is proposed.
Ontario adopts bill “unleashing” the economy
Ontario Premier Doug Ford’s conservative government’s bill to unleash the province’s economy became law June 5, 2025.
What is Ontario Bill 5?
Bill 5 is a law that aims at “Protecting Ontario from global economic uncertainty by unleashing our economy”. In other words, the primary goal is to boost Ontario’s economy and make the province the top place among G7 countries for investing, creating jobs, and doing business by:
- Making it faster and easier to get approvals for critical mineral mining and major infrastructure projects.
- Speeding up provincial permits and approvals for projects like critical minerals mining and infrastructure, while ensuring environmental protection for the future
- Keeping Ontario’s energy supply secure by limiting participation from foreign entities.
At the end of May, British Columbia NDP government also passed legislation aimed at fast tracking infrastructure projects: Renewable Energy Projects (Streamlined Permitting) Act (Bill 14) and The Infrastructure Projects Act (Bill 15).
Perspectives from Indigenous groups.
Although both the federal and the Ontario bills include sections and language related to Indigenous relations, mechanisms in the bills are already raising concerns among these groups.
The Assembly of First Nations (AFN), a national advocacy organization, said it “remains deeply concerned about the lack of time and appropriate process to carry out the Crown’s consultation and consent obligations, especially given the potentially massive impact on the rights of First Nations.” The AFN said it will schedule a meeting with Chiefs across Canada.
In Ontario, CTV reported a protest took place after the adoption of Bill 5. “This is directly to Doug Ford … don’t forget our population of Indigenous people is growing three times (faster than) the national average,” said Jennifer Constant, chief of Mattagami First Nation, according to the TV outlet.
The CBC reported that Tsartlip Chief Don Tom said of the B.C. bills that “Chiefs were unified in our opposition in demanding that bills 14 and 15 be withdrawn immediately.”
