One Canadian Economy & New Bill C-5: Game-Changing Shifts That Could Redefine Canada’s Future

On June 20, 2025, Canada’s House of Commons passed Bill C-5, officially titled the One Canadian Economy Act. This landmark legislation, spearheaded by Prime Minister Mark Carney, aims to address longstanding economic challenges by unifying the country’s economy, removing internal trade barriers, enhancing labor mobility, and accelerating nation-building infrastructure projects. The bill is a response to the urgent need for economic resilience in the face of external pressures, such as U.S. tariffs, and the persistent inefficiencies caused by interprovincial trade barriers.

Bill C-5: Key Data Table

Understanding Bill C-5: The One Canadian Economy Act

Bill C-5, introduced on June 6, 2025, is a bold initiative to transform Canada’s fragmented economic landscape. It seeks to create a unified national economy by eliminating federal barriers to interprovincial trade and worker mobility, while streamlining the approval and construction of major infrastructure projects.

The legislation comprises two main components:

• Free Trade and Labour Mobility in Canada Act

• Building Canada Act

Together, these elements are designed to foster economic growth, create jobs, and strengthen Canada’s global competitiveness.

Why Was Bill C-5 Introduced?

Canada’s economy has long been hindered by interprovincial trade barriers, which create inefficiencies and increase costs for businesses and consumers. Estimates suggest these barriers cost the economy billions annually, limiting productivity and global competitiveness. Additionally, Canada faces an infrastructure deficit, with aging transportation networks and a pressing need for sustainable energy projects.

Bill C-5 addresses these challenges by:

• Promoting Economic Unity: Harmonizing regulations and reducing trade barriers to create a seamless economic framework across provinces and territories.

• Boosting Competitiveness: A unified economy positions Canada to compete more effectively in the global market.

• Addressing Infrastructure Needs: Prioritizing major projects to modernize Canada’s infrastructure, supporting economic growth and job creation.

• Responding to External Pressures: Recent U.S. tariffs have highlighted the need for a resilient domestic economy, prompting swift action to remove internal barriers1.

Key Components of the One Canadian Economy Act

1. Free Trade and Labour Mobility in Canada Act

This component targets the elimination of federal barriers to internal trade and labor mobility, creating a more fluid economic environment.

Key provisions include:

• Harmonizing Regulations: The act recognizes provincial and territorial standards for goods and services as meeting comparable federal standards, reducing the regulatory burden on businesses.

• Enhancing Labor Mobility: Workers with provincial or territorial licenses can more easily obtain federal recognition to work in other jurisdictions, addressing labor shortages and expanding employment opportunities.

• Mutual Recognition in Trucking: The act supports mutual recognition of trucking regulations, streamlining the movement of goods across Canada.

• Reducing CFTA Exceptions: The government has committed to removing nearly 70% of its 53 federal exceptions under the Canadian Free Trade Agreement (CFTA) by July 2025, further facilitating internal trade.

2. Building Canada Act

The Building Canada Act is the more ambitious and controversial part of Bill C-5, focusing on expediting infrastructure projects of “national interest.”

Key features include:

• Project Designation: The Governor in Council can designate projects—such as highways, ports, pipelines, critical mineral mines, or nuclear facilities—as nationally significant. These projects benefit from streamlined approvals and regulatory exemptions.

• Two-Key Process: Once designated, projects receive federal approvals subject to conditions set by a designated minister. A single “conditions document” replaces multiple regulatory decisions, reducing approval timelines from five years to two.

• Federal Major Projects Office: A new office serves as a single point of contact for project proponents, coordinating assessments, permitting, and consultations with provinces, territories, and Indigenous communities.

• Indigenous Consultation: The act mandates consultations with Indigenous Peoples to ensure projects respect rights under Section 35 of the Constitution Act, 1982 and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). An Indigenous Advisory Council supports this process.

• Environmental Protections: While streamlining approvals, the act commits to upholding rigorous environmental standards, though specifics remain under scrutiny.

The Legislative Journey of Bill C-5

Bill C-5’s passage through the House of Commons was swift but not without debate:

• Introduction: Tabled on June 6, 2025, by the Honourable Dominic LeBlanc, Minister responsible for Intergovernmental Affairs and One Canadian Economy.

• Second Reading and Debate: The bill passed its second reading on June 18, 2025, with support from the Liberal and Conservative parties. The Bloc Québécois and NDP raised concerns about federal overreach and inadequate Indigenous consultation.

• Final Vote: On June 20, 2025, the House of Commons passed Bill C-5, reflecting bipartisan support. It now awaits Senate consideration.

Benefits of the One Canadian Economy Act

Bill C-5 promises significant economic and social benefits:

• Economic Growth: Removing trade barriers and expediting infrastructure projects is expected to boost GDP and create thousands of jobs.

• Consumer Benefits: Harmonized regulations will increase competition and lower prices for goods and services.

• Investor Confidence: Streamlined approvals and a clear regulatory framework will attract domestic and foreign investment.

• Indigenous Opportunities: The expanded Indigenous Loan Guarantee Program and consultation requirements aim to foster economic reconciliation by enabling Indigenous ownership of major projects.

• Global Competitiveness: A unified economy positions Canada to strengthen trade relationships and compete in the G7.

Criticisms and Concerns

Despite its ambitious goals, Bill C-5 has faced significant opposition:

• Federal Overreach: Critics argue that the bill undermines provincial autonomy by granting the federal government authority to override provincial regulations.

• Indigenous Rights: Concerns have been raised about inadequate consultation processes and potential violations of Section 35 of the Constitution Act, 1982 and UNDRIP.

• Environmental Concerns: Environmental groups worry that streamlined approvals could prioritize economic gains over environmental protections.

• Transparency Issues: Exemptions from certain regulations, such as the Access to Information Act, raise concerns about accountability.

• Regional Disparities: Some fear the bill prioritizes urban and resource-rich regions, potentially neglecting rural communities.

Stakeholder and Public Reactions

• Business Community: The Canadian Chamber of Commerce supports the bill, citing its potential to reduce costs and enhance competitiveness.

• Indigenous Groups: Leaders have called for stronger consultation frameworks to ensure meaningful engagement and consent.

• Labor Unions: Unions are optimistic about job creation but seek assurances that workers’ rights and safety standards will be protected.

• Environmental Advocates: Opinions are split, with some supporting the bill’s potential for clean energy projects and others concerned about environmental risks.

• Public Sentiment: Social media reflects polarized views, with some praising the bill as a “game-changer” and others criticizing it as a “power grab”.

How Bill C-5 Fits into Canada’s Economic Strategy

Bill C-5 builds on existing initiatives while introducing bold new measures:

• Canadian Free Trade Agreement (CFTA): The act strengthens the CFTA by further reducing federal exceptions and enforcing mutual recognition of standards.

• Infrastructure Programs: Unlike previous programs like the Investing in Canada Plan, Bill C-5 combines funding with regulatory streamlining to accelerate project delivery.

• Indigenous Economic Reconciliation: The expanded Indigenous Loan Guarantee Program aligns with Canada’s commitment to economic reconciliation.

What’s Next for Bill C-5?

As Bill C-5 moves to the Senate, several key developments are expected:

• Senate Review: Committees will review the bill, with input from ministers. Amendments may address concerns about transparency and consultation.

• Implementation Challenges: Success depends on federal-provincial cooperation, robust Indigenous consultation, and effective execution by the Federal Major Projects Office.

• Public and Legal Scrutiny: Potential legal challenges could arise if consultation or environmental standards are deemed inadequate.

What is Bill C-5 in Canada?
Bill C-5, the One Canadian Economy Act, is a 2025 federal law aimed at unifying Canada’s economy by removing interprovincial trade barriers, enhancing labor mobility, and fast-tracking major infrastructure projects.

Does Bill C-5 address hate speech?
No, Bill C-5 focuses on economic integration and infrastructure. Hate speech is addressed by Bill C-63, introduced in 2024.

What are the main benefits of Bill C-5?
The main benefits include economic growth, job creation, lower consumer prices, increased investor confidence, and opportunities for Indigenous economic empowerment.

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