On June 20, 2025, Bill C-5, known as the One Canadian Economy Act, was passed by the House of Commons with a decisive majority, aiming to dismantle internal trade and labor mobility barriers across Canada. The legislation grants the federal government expanded authority to expedite infrastructure projects deemed nationally significant and introduces structured consultation processes with Indigenous peoples. While the bill has garnered broad political support as a means to enhance economic competitiveness and job creation, it has also sparked controversy over concerns about Indigenous rights and environmental oversight. The bill now moves to the Senate for final review before anticipated enactment ahead of Canada Day.
The passage of Bill C-5, the One Canadian Economy Act, represents a significant legislative effort to unify the Canadian market by eliminating longstanding internal barriers to trade and labor movement. By easing restrictions that previously varied by province and territory, the Act aims to facilitate the free flow of goods, services, and workers across the country, thereby boosting economic efficiency and responsiveness.
Dismantling Internal Trade Barriers
One of the centerpiece reforms introduced by the Act is the removal of provincial and territorial regulatory differences that have historically hindered interprovincial commerce. These barriers often resulted in increased costs, delays, and complex compliance requirements for businesses operating in multiple jurisdictions. Under the new framework, standardized rules and mutual recognition agreements will streamline processes for product approvals and professional certifications, enabling workers and companies to operate more freely throughout Canada.
Accelerating Infrastructure Development
In addition to trade facilitation, Bill C-5 enhances federal government authority to identify and expedite infrastructure projects deemed nationally significant. This provision is intended to fast-track critical investments in transportation, energy, and digital connectivity infrastructures that underpin economic growth. The legislation outlines clear timelines and accountability measures to reduce bureaucratic delays, while maintaining provisions for environmental assessment and public consultation.
Engagement with Indigenous Peoples
A notable aspect of the legislation is the formalization of consultation requirements with Indigenous communities. Recognizing the importance of respectful and meaningful dialogue, the Act establishes structured processes to ensure Indigenous rights and interests are considered in project planning and execution. While this represents progress in aligning economic development with reconciliation efforts, some Indigenous leaders and advocacy groups have expressed concerns about the sufficiency of these protections and the potential for override in cases deemed urgent.
Political Reactions and Public Debate
The bill received broad support across major political parties, with proponents highlighting its potential to increase competitiveness, create jobs, and foster national unity. However, opposition voices and some advocacy organizations have raised challenges related to environmental oversight and Indigenous sovereignty. Critics caution that accelerating project approvals might compromise thorough environmental assessments and undermine rights guaranteed under existing treaties.
Next Steps and Implementation
Following its passage in the House of Commons, Bill C-5 will undergo final review and potential amendments in the Senate. The government aims to complete this process promptly, with an anticipated enactment before Canada Day. Upon becoming law, regulatory bodies and provincial governments will engage in coordinated efforts to implement the new provisions, monitor compliance, and address any emerging issues related to trade, infrastructure, and Indigenous engagement.
The evolution of the One Canadian Economy Act will be closely watched by industry stakeholders, Indigenous communities, environmental groups, and economists alike, as it represents a landmark shift toward a more integrated Canadian economy.
In summary, Bill C-5, the One Canadian Economy Act, marks a transformative step toward unifying Canada’s economic landscape by removing internal trade and labor barriers, accelerating infrastructure development, and formalizing Indigenous consultations. While the legislation has garnered strong political support for its potential to enhance competitiveness and job creation, it also raises important concerns regarding Indigenous rights and environmental safeguards. As the bill proceeds to the Senate for final review, its implementation will require careful balancing of economic priorities with social and environmental responsibilities. The coming months will be critical in determining how this law shapes Canada’s economic integration and its commitment to inclusive, sustainable growth.
