C-5 · One Canadian Economy Act
An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act
- Establishes a framework to remove federal barriers to interprovincial trade and improve labour mobility in Canada.
- Streamlines recognition of provincial occupational authorizations, allowing easier access for workers across provinces.
- Authorizes projects deemed to be in the national interest to move forward with simplified approvals.
This bill aims to enhance trade across provinces and improve labour mobility while also designating national interest projects, which can influence government priorities. However, it may simultaneously relax certain environmental protections.
The bill balances economic growth and increased trade against the risk of weakened environmental protections, potentially harming ecosystems and communities reliant on natural resources.
The title omits the changes to environmental regulations and the listing of national interest projects, which are significant components of the bill.
This part of the bill establishes the Free Trade and Labour Mobility in Canada Act, which aims to eliminate federal barriers to the interprovincial trade of goods and services and facilitate the movement of workers across provinces by recognizing provincial qualifications. It allows goods and services that meet provincial standards to automatically meet corresponding federal standards.
This is significant for Canadians as it could enhance economic activity by allowing smoother trade and labour movement, potentially leading to job creation and lower prices for consumers. By reducing barriers, businesses may find it easier to operate across provincial lines, optimizing resources and expanding markets.
The bill addresses the existing federal barriers that hinder interprovincial trade and restrict the mobility of workers, creating inefficiencies in the Canadian economy.
Businesses and workers gain from the reduced bureaucratic hurdles, making it easier for them to trade and work in different provinces without facing conflicting regulations.
The most significant tradeoff involves the potential diminished oversight of health, safety, and environmental standards, which could lead to unsafe practices if not carefully regulated, affecting public welfare.
Amends: Free Trade and Labour Mobility in Canada Act
Read the actual text (13)
2The Free Trade and Labour Mobility in Canada Act is enacted as follows: An Act to promote free trade and labour mobility in Canada Preamble Whereas the Government of Canada intends to remove federal exceptions under the Canadian Free Trade Agreement ; Whereas the Government of Canada wishes to continue to work with provinces and territories towards establishing a national system of mutual recognition in which a good, service or worker that meets the requirements of one Canadian jurisdiction would be recognized as meeting the requirements of all; And whereas Parliament is committed to strengthening the Canadian economy by improving labour mobility within Canada, and making it easier for businesses and Canadians to buy Canadian goods and services through the removal of federal barriers to the interprovincial movement of goods and provision of services, while continuing to protect the health, safety and security of Canadians, their social and economic well-being and the environment; Now, therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title Short title 1 This Act may be cited as the Free Trade and Labour Mobility in Canada Act .
2The following definitions apply in this Act. federal regulatory body means (a) in relation to a good or service, (i) a body that is empowered under an Act of Parliament to regulate the good or service, or (ii) a body designated by the regulations that regulates the good or service; and (b) in relation to an occupation, (i) a body that is empowered under an Act of Parliament to issue authorizations to practise the occupation, or (ii) a body designated by the regulations that issues authorizations to practise the occupation. ( organisme de réglementation fédéral ) federal requirement means a requirement established under an Act of Parliament or by a federal regulatory body. ( exigence fédérale ) Minister means the member of the King’s Privy Council for Canada designated under section 6 . ( ministre ) provincial or territorial regulatory body means (a) in relation to a good or service, (i) a body that is empowered under an Act of the legislature of a province or territory to regulate the good or service, or (ii) a body designated by the regulations that regulates the good or service; and (b) in relation to an occupation, (i) a body that is empowered under an Act of the legislature of a province or territory to issue authorizations to practise the occupation, or (ii) a body designated by the regulations that issues authorizations to practise the occupation. ( organisme de réglementation provincial ou territorial ) provincial or territorial requirement means a requirement established under an Act of the legislature of a province or territory or by a provincial or territorial regulatory body. ( exigence provinciale ou territoriale )
3The provisions of this Act and the regulations made under it prevail over the provisions of any other Act of Parliament and any regulations made under any other Act of Parliament to the extent of any conflict between them.
4The purpose of this Act is to promote free trade and labour mobility by removing federal barriers to the interprovincial movement of goods and provision of services and to the movement of labour within Canada while continuing to protect the health, safety and security of Canadians, their social and economic well-being and the environment.
5This Act is binding on His Majesty in right of Canada.
6The Governor in Council may, by order, designate a member of the King’s Privy Council for Canada as the Minister for the purposes of this Act.
7Sections 8 and 9 apply in respect of a federal requirement only if the federal requirement pertains to (a) a good or service that is also subject to a provincial or territorial requirement; and (b) the interprovincial movement of the good or provision of the service.
8(1) Subject to the regulations, a good produced, used or distributed in accordance with a provincial or territorial requirement is considered to meet any comparable federal requirement. Comparable requirements (2) For the purposes of subsection (1), a provincial or territorial requirement is considered to be comparable to a federal requirement only if (a) the requirements are in respect of the same aspect or element of the good; (b) the requirements are intended to achieve a similar objective; and (c) any conditions set out in the regulations are met. Decision (3) The federal regulatory body responsible for the administration and enforcement of a federal requirement may decide, in accordance with subsection (2), whether a provincial or territorial requirement is comparable to the federal requirement.
9(1) Subject to the regulations, a service provided in accordance with a provincial or territorial requirement is considered to meet any comparable federal requirement so long as the provincial or territorial requirement continues to apply to the service provider. Comparable requirements (2) For the purposes of subsection (1), a provincial or territorial requirement is considered to be comparable to a federal requirement only if (a) the requirements are in respect of the same aspect or element of the service; (b) the requirements are intended to achieve a similar objective; and (c) any conditions set out in the regulations are met. Decision (3) The federal regulatory body responsible for the administration and enforcement of a federal requirement may decide, in accordance with subsection (2), whether a provincial or territorial requirement is comparable to the federal requirement.
10Subject to the regulations, a federal regulatory body must (a) recognize an authorization to practise an occupation issued by a provincial or territorial regulatory body as comparable to an authorization that the federal regulatory body may issue to practise that occupation; and (b) on application by the holder of such a provincial or territorial authorization, issue them an authorization to practise that occupation.
11(1) The Governor in Council may, on the recommendation of the Minister, make regulations respecting federal barriers to the interprovincial movement of goods and provision of services and to the movement of labour within Canada, including regulations (a) providing for exceptions to subsection 8 (1) or 9 (1) or section 10 ; (b) imposing obligations, prohibitions, conditions and restrictions for the purposes of any of sections 8 to 10 ; (c) respecting, for the purposes of subsections 8 (2) and 9 (2), the meaning of the expressions “same aspect or element” and “achieve a similar objective” or any term used in those expressions; (d) respecting the meaning of the term “authorization” for the purposes of this Act; (e) respecting any transitional matters arising from the coming into force of this Act or of any amendments to it; and (f) respecting anything that by this Act is to be provided for by the regulations. Consultation (2) Before recommending a regulation to the Governor in Council under paragraph (1)(a) in relation to a federal requirement or authorization, the Minister must consult the federal regulatory body responsible for the administration and enforcement of the federal requirement or for the issuance of the authorization.
12(1) Despite any other Act of Parliament, no civil action lies against His Majesty, a servant or agent of the Crown or a federal regulatory body in respect of anything done or omitted to be done, or purported to be done or omitted to be done, in good faith in the course of applying section 8 , 9 or 10 or any regulations made for the purposes of any of those sections, including anything in relation to whether provincial or territorial requirements are comparable to federal requirements and the recognition and issuance of authorizations to practise an occupation. For greater certainty (2) For greater certainty, subsection (1) does not apply in respect of applications for judicial review or to proceedings under Chapter Ten of the Canadian Free Trade Agreement .
13Within five years after the day on which this Act comes into force, the Minister must complete a review of this Act and its operation and cause a report on the review to be laid before each House of Parliament.
This part lists specific projects deemed to be in the national interest, providing a description for each. It creates a framework for identifying and categorizing these projects.
This matters because designating projects as national interest can influence funding, regulatory processes, and prioritization in government agendas. It impacts how resources are allocated and can shape economic development.
It addresses the need for clarity and organization around which projects are prioritized for national significance.
Entities involved in the listed projects gain from increased government support and streamlined processes.
The tradeoff may involve prioritizing certain projects at the potential expense of local or regional interests that may not be included in this national framework.
This part of the bill lists specific Acts of Parliament and regulations that are impacted, indicating their repeal or modification. It identifies various environmental and wildlife protection statutes and regulations.
Changes to these laws can significantly impact environmental protection efforts in Canada, affecting ecosystems, wildlife, and water resources. The public's access to clean water and healthy habitats could be at stake.
This provision seeks to amend or remove certain regulations to streamline processes or reduce bureaucratic burdens.
Industries and developers may benefit from reduced regulatory requirements, allowing for easier access to resources and fewer restrictions on operations.
The significant tradeoff here involves a potential decrease in environmental protections and oversight, which may lead to increased harm to wildlife and ecosystems, impacting communities that rely on these resources.
Official drafter summary (parl.ca)
Part 1 enacts the Free Trade and Labour Mobility in Canada Act , which establishes a statutory framework to remove federal barriers to the interprovincial trade of goods and services and to improve labour mobility within Canada. In the case of goods and services, that Act provides that a good or service that meets provincial or territorial requirements is considered to meet comparable federal requirements that pertain to the interprovincial movement of the good or provision of the service. In the case of workers, it provides for the recognition of provincial and territorial authorizations to practise occupations and for the issuance of comparable federal authorizations to holders of such provincial and territorial authorizations. It also provides the Governor in Council with the power to make regulations respecting federal barriers to the interprovincial movement of goods and provision of services and to the movement of labour within Canada. Part 2 enacts the Building Canada Act , which, among other things, (a) authorizes the Governor in Council to add the name of a project and a brief description of it to a schedule to that Act if the Governor in Council is of the opinion, having regard to certain factors, that the project is in the national interest; (b) provides that determinations and findings that have to be made and opinions that have to be formed under certain Acts of Parliament and regulations for an authorization to be granted in respect of a project that is named in Schedule 1 to that Act are deemed to have been made or formed, as the case may be, in favour of permitting the project to be carried out in whole or in part; (c) requires the minister who is designated under that Act to issue to the proponent of a project, if certain conditions are met, a document that sets out conditions that apply in respect of the project and that is deemed to be the authorizations, required under certain Acts of Parliament and regulations, that are specified in the document; and (d) requires that minister, each year, to cause an independent review to be conducted of the status of each national interest project. Available on the House of Commons website at the following address: www.ourcommons.ca
- Disagreement over the adequacy of consultations with Indigenous peoples
- Concerns about the impact on environmental standards and existing laws
- Debate over the definition of 'national interest' projects
- Perceived overreach of federal powers at the expense of provincial rights
Conservatives and Liberals generally aligned, while NDP, Bloc, and Greens expressed serious concerns.
- First reading (House of Commons)Jun 6, 2025
- Second reading (House of Commons)Jun 16, 2025
- Third reading (House of Commons)Jun 20, 2025
- First reading (Senate)Jun 25, 2025
- Second reading (Senate)Jun 25, 2025
- Third reading (Senate)Jun 26, 2025
- Royal AssentJun 26, 2025