Blog

Briefing Note: Bill C-5

This briefing explains Canada’s new legislation, Bill C-5, also known as the One Canadian Economy Act, which received Royal Assent on June 26, 2025.

Key Messages:

  1. Bill C-5 reduces the federal restrictions on interprovincial trade in goods, services, and labour.
  2. Enables “comparable” provincial standards to be accepted federally.
  3. Allows Governor General to designate “national interest” projects.
    1. These projects bypass many federal permitting processes.
    2. Conditions set by ministerial order, which significantly reduces timelines.
  4. The intent of the Act is to ensure these nation-building projects are through the federal reviews within 2 years.

Part 1: Free Trade & Labour Mobility in Canada Act

  • Removes federal barriers to interprovincial trade on goods and services and labour mobility.
  • A good or service which meets provincial or territorial requirements is considered to meet the comparable federal requirements.
  • Labour mobility: an authorization to practice an occupation issued by a provincial or territorial regulatory body is recognized as comparable by the federal regulatory body.
  • Governor in Council can 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: Building Canada Act

  • Authorizes the Governor in Council to add projects of “national interest” to a federal schedule.
  • The project then has all determinations, findings and opinions necessary for authorizations required of the project under other federal enactments deemed favourable.
  • The responsible minister then issues a document that sets out compliance conditions covering the subject matter of the authorizations that would otherwise have been required.
  • Before a project is added to the list, its name and description will be published in the Canada Gazette for 30 days, allowing for feedback.
  • Governor in Council must consult with:
    • the government of the province or territory where the project takes place. Additionally, written consent is needed if the project falls within areas of exclusive provincial or territorial jurisdiction.
    • Indigenous peoples whose section 35 rights may be affected.
  • Projects may be considered if they:
    • (a) strengthen Canada’s autonomy, resilience and security;
    • (b) provide economic or other benefits to Canada;
    • (c) have a high likelihood of successful execution;
    • (d) advance the interests of Indigenous peoples; and
    • (e) contribute to clean growth and to meeting Canada’s objectives with respect to climate change.
  • Nuclear Safety and Control Act & Canadian Energy Regulator Act: it is required that the responsible minister consult with the Canadian Nuclear Safety Commission and the Canadian Energy Regulator for projects that fall under those Acts. The authorization is not given until the CNSC or CER confirm the project will not compromise the health or safety of persons or regulated facilities, national security or implementation of international obligations.
  • Impact Assessment Act: if a project is also deemed a designated project (as defined in section 2 of the Impact Assessment Act); the Agency will have decided that an impact assessment of the project is required.
  • The Governor in Council is not authorized to amend Schedule 2 (which lists the Acts whose regulations can be bypassed) to add any of the following:
    • Access to Information Act
    • Canada Elections Act
    • Canada Labour Code
    • Conflict of Interest Act
    • Criminal Code
    • Foreign Influence Transparency and Accountability Act
    • Investment Canada Act
    • Lobbying Act
    • Official Languages Act
    • Use of French in Federally Regulated Private Businesses Act
    • Indian Act
    • Railway Safety Act
    • Trade Unions Act
    • Explosives Act
    • Hazardous Products Act
  • Regulation Making Authority: The Governor in Council can make regulations exempting it from, or varying the application of, any provision of 13 statutes or regulations made thereunder, or to enact other regulations for the purpose of carrying out the Act.

Indigenous Consultation

  • A process must be established which allows for the active and meaningful participation of the affected Indigenous peoples and that a report of the consultation process and results is made available to the public within 60 days of the required document issuance.
  • Indigenous consultation and engagement is said to be critical and pivotal to the success of future projects.

Next Steps:

  • Assembly of First Nations (AFN) is organizing a second National Virtual Forum with Chiefs on July 10, 2025, to discuss the amendments to the bill since their first meeting.
  • Prime Minister Carney says he will meet with First Nations, Inuit, and Metis over the coming weeks.