Bill C-5 One Canadian Economy

Bill C-5 Cartoon
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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-U.S. Trade, Intergovernmental Affairs, Internal Trade, and One Canadian Economy Dominic LeBlanc

This Bill received Royal Assent on Thursday, June 26, 2025

Estimated Read Time: 4 minutes

⚠️ The Building Canada Act created by Bill C‑5 was later amended by Bill C‑15. The amendment corrected the public registry requirements so reporting covers all five factors used to identify a national interest project.

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. 

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 recognizes compliance with a comparable Provincial or Territorial requirement as meeting the related Federal requirement for interprovincial trade. The Provincial or Territorial standard must cover the same issue and have a similar purpose. This removes duplicate Federal requirements but does not repeal a Province’s own standards.
  • 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 keep their own standards. Bill C‑5 allows compliance with one Province’s requirement to satisfy a comparable Federal requirement for interprovincial trade. It does not require British Columbia to repeal its own higher Provincial standard because Alberta uses a different standard.
  • 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 do not control the Federal approvals covered by the Building Canada Act. Provincial approvals may still be required. Government must consult the affected Province or Territory and obtain written consent when a project falls within exclusive Provincial or Territorial jurisdiction.

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 a Provincial or Territorial requirement that is comparable to a Federal requirement, that compliance can also satisfy the Federal requirement for interprovincial trade. The requirements must cover the same issue and have a similar purpose. Provincial standards remain in place.

Tool 2: Fast-track project approval Government can label a project "nationally important" and place it on an accelerated Federal approval track using one conditions document for the listed Federal authorizations. Before listing a project, Government must publish a 30-day notice in the Canada Gazette and consult affected Provinces, Territories and Indigenous Peoples. No independent body approves the designation and Parliament does not hold a separate vote on each project.

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.

⚠️ Limited Designation Transparency — Government must publish a 30-day notice in the Canada Gazette before adding a project to the national interest list. The notice identifies and describes the project, but the Act does not require Government to publish a full explanation showing why the project met the national interest factors.

⚠️ Federal Regulatory Floor Risk — A Provincial or Territorial requirement can satisfy a comparable Federal requirement when both cover the same issue and have a similar purpose. The Federal requirement remains in Law but is treated as satisfied. The concern is whether Government will treat a less demanding Provincial requirement as comparable to a stronger Federal rule.