An Act to Enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act
Short Title: One Canadian Economy Act
Bill Type: House Government Bill
Bill Sponsor: President of the King's Privy Council for Canada and Minister Responsible for Canada-US Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy
This Bill received Royal Assent on Thursday, June 26, 2025
What is this Bill For?
Bill C-5 combines two separate pieces of Legislation into a single Bill. Part 1 removes barriers to trade and labour mobility between provinces through mutual recognition of standards and credentials. Part 2 creates a fast-track Federal approval process for projects Government designates as nationally important.
Status: Royal Assent — June 26, 2025. This Bill is now Law.
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WHO GAINS POWER
- The Governor in Council gains authority to designate any project as "nationally important" — triggering a streamlined single-document Federal approval that bypasses normal regulatory timelines. The criteria for designation include economic benefits, security, Indigenous interests and climate goals — broad enough that Government holds significant discretion over which projects qualify
- Government gains authority to override Provincial regulatory differences through mutual recognition. If a good, service or credential meets one province's standard, it automatically meets the Federal standard — regardless of whether other provinces have set higher requirements
- Large corporations gain national market access under a single compliance standard instead of adapting to different Provincial rules in each jurisdiction where they operate
WHO LOSES POWER
- Provincial Governments lose the ability to keep their own higher standards for products, services and workers coming in from other provinces. If Alberta allows something under its rules, British Columbia has to accept it too — even if BC had stricter rules for good reason
- Indigenous communities get a seat at the table — but not a veto. Government must consult them before approving a fast-tracked project. But if Government decides the project is important enough, it can approve it anyway. And the fast-track timeline means less time to have that conversation in the first place
- Environmental and community groups get less time to raise concerns. Faster approvals mean shorter windows for public input, environmental reviews and legal challenges
- Provincial and Territorial Governments lose the final say on major projects inside their own borders. Once Government stamps a project as "nationally important," Federal approval overrides whatever the province would have decided
WHO GAINS MONEY
- Large corporations operating nationally gain the most from mutual recognition — one compliance standard replaces ten to thirteen different Provincial requirements. A national chain that was blocked by stricter Provincial rules in some markets gains full national access
- Resource extraction, construction and infrastructure developers gain faster project approvals. Reduced regulatory timelines lower carrying costs and uncertainty on major capital projects
- Mobile skilled workers and professionals gain credential recognition across provinces — the ability to move for work without re-certification reduces barriers to employment and increases earning options
WHO LOSES MONEY
- Local businesses in provinces with higher standards face increased competition from out-of-province operators who previously could not meet local requirements. Mutual recognition removes that barrier
- Workers in regulated professions face a larger labour pool competing for the same positions as credential recognition increases mobility — with potential downward pressure on wages in high-demand trades
- Taxpayers bear the risk if fast-tracked projects are poorly vetted and fail or cause environmental damage. Cleanup costs and liability fall on public budgets. Annual Parliamentary reviews happen after designation — not before
THE CATCH
Bill C-5 gives Government two powerful new tools — and very little independent oversight over either one.
Tool 1: Mutual recognition If a product, service or worker meets the rules in one Province, it automatically meets the Federal standard everywhere. It means a Province that chose stricter food safety rules, environmental standards or professional requirements has no way to keep those higher standards if another province's lower bar triggers automatic acceptance.
Tool 2: Fast-track project approval Government can label any project "nationally important" and put it on an accelerated approval track — one document, faster timeline, Federal override of Provincial processes. There is no independent body checking whether that label is being applied fairly. No requirement to explain publicly why one project gets fast-tracked and another does not.
The accountability gaps in plain language:
- Government picks the projects — no outside check on that decision
- Indigenous communities must be consulted but their answer does not have to be yes
- Parliament sees the list after the fact — it cannot stop a project once it is designated
- If a fast-tracked project goes wrong — pipeline spill, construction failure, environmental damage — taxpayers pay the cleanup bill
⚠️ No Independent Designation Review — Government decides which projects are "nationally important" with no arm's-length body checking that call. The criteria are broad enough to fit almost any major project Government wants to prioritize.
⚠️ Consultation Without Consent — Indigenous communities must be consulted — but their answer does not have to be yes. Government can approve a project over their objection if it decides national interest comes first. The fast-track timeline makes meaningful consultation harder, not easier.
⚠️ Reactive Parliamentary Oversight — Parliament gets an annual report on designated projects — after they are already approved. There is no mechanism for Parliament to stop a project before it goes ahead.
⚠️ No Designation Transparency — Government does not have to explain publicly why one project gets the "nationally important" label and another does not. The selection process is entirely internal.
⚠️ Regulatory Floor Risk — Government decides what the Federal standard is under mutual recognition. If a Province sets a higher standard — stricter food safety, tighter environmental rules, stronger consumer protections — mutual recognition can effectively nullify it without Parliament ever voting to change that Province's Law. That is a significant shift in who controls regulatory standards in Canada, done quietly through a trade mechanism rather than a Legislative debate.
[Source: Bill C-5 — One Canadian Economy Act, Royal Assent June 26, 2025, Statutes of Canada 2025, c. 2]