New Canada Bill C-5 | One Canadian Economy | Full Explainer

Last Updated On 20 June 2025, 10:25 PM EDT (Toronto Time)

On June 20, 2025, Canada passed the bill C-5, officially titled the One Canadian Economy Act, in the House of Commons, which is good news for Canadians from coast to coast.

This landmark legislation, led by new Prime Minister Mark Carney, aims to unify Canada’s fractured economy by removing internal trade barriers, enhancing labour mobility, and accelerating nation-building infrastructure projects.

Honestly, the idea for this legislation did not originate with Carney; rather, it arose from the demand and need expressed by provincial counterparts to facilitate business operations across provincial borders.

Comprising the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, Bill C-5 is designed to foster economic growth, create jobs, and strengthen Canada’s global competitiveness.

In this article, we’ll explore the details, implications, and debates surrounding this transformative act, ensuring you have all the information you need.

Bill C-5, introduced on June 6, 2025, is a bold legislative initiative to address longstanding economic challenges in Canada.

It seeks to create a unified national economy by eliminating federal barriers to interprovincial trade and worker mobility while streamlining the approval and construction of major infrastructure projects.

The act responds to the urgent need to enhance Canada’s economic resilience, particularly in light of external pressures such as U.S. tariffs, which demonstrate the value of a strong, cohesive domestic market.

The structure of the legislation revolves around two key components:

Free Trade and Labour Mobility in Canada Act: This focuses on reducing regulatory barriers to the movement of goods, services, and workers across provincial and territorial borders.
Building Canada Act: This enables the federal government to fast-track infrastructure projects deemed in the national interest, such as highways, pipelines, and renewable energy facilities.

Together, these components aim to transform Canada from a collection of 13 distinct economies into a single, competitive economic powerhouse.

Canada’s economy has long been hindered by interprovincial trade barriers, which create inefficiencies and increase costs for businesses and consumers.

Estimates suggest these barriers cost the economy billions annually, limiting productivity and global competitiveness.

Additionally, Canada faces an infrastructure deficit, with aging transportation networks and a pressing need for sustainable energy projects.

Bill C-5 addresses these challenges by:

Promoting Economic Unity: By harmonizing regulations and reducing trade barriers, the act aims to create a seamless economic framework across provinces and territories.
Boosting Competitiveness: A unified economy positions Canada to compete more effectively in the global market, particularly against economic giants like the U.S. and the EU.
Addressing Infrastructure Needs: The legislation prioritizes major projects to modernize Canada’s infrastructure, supporting economic growth and job creation.
Responding to External Pressures: Recent U.S. tariffs have highlighted the need for a resilient domestic economy, prompting swift action to remove internal barriers.

The bill was introduced following a First Ministers’ Meeting in Saskatoon on June 2, 2025, where Prime Minister Mark Carney and provincial premiers agreed on the urgency of building transformative projects and enhancing interprovincial trade.

1. Free Trade and Labour Mobility in Canada Act

This component targets the elimination of federal barriers to internal trade and labour mobility, creating a more fluid economic environment.

Key provisions include:

Harmonizing Regulations: The act recognizes provincial and territorial standards for goods and services, such as organic food certifications or energy efficiency requirements, as meeting comparable federal standards. This reduces the regulatory burden on businesses operating across provinces.
Enhancing Labor Mobility: Workers with provincial or territorial licenses, such as nurses, engineers, or tradespeople, can more easily obtain federal recognition to work in other jurisdictions. This addresses labor shortages and expands employment opportunities.
Mutual Recognition in Trucking: Building on a 2024 initiative, the act supports mutual recognition of trucking regulations, streamlining the movement of goods across Canada.
Reducing Canadian Free Trade Agreement (CFTA) Exceptions: The government has committed to removing nearly 70% of its 53 federal exceptions under the CFTA by July 2025, further facilitating internal trade.

These measures aim to increase consumer choice, lower costs, and enable businesses to expand more easily across Canada.

2. Building Canada Act

The Building Canada Act is the more ambitious and controversial part of Bill C-5, focusing on expediting infrastructure projects of “national interest.”

Its key features include:

Project Designation: The Governor in Council can designate projects—such as highways, ports, pipelines, critical mineral mines, or nuclear facilities—as nationally significant. These projects benefit from streamlined approvals and regulatory exemptions.
Two-Key Process: Once designated, projects receive federal approvals subject to conditions set by a designated minister. A single “conditions document” replaces multiple regulatory decisions, reducing approval timelines from five years to two.
Federal Major Projects Office: A new office will serve as a single point of contact for project proponents, coordinating assessments, permitting, and consultations with provinces, territories, and Indigenous communities.
Indigenous Consultation: The act mandates consultations with Indigenous Peoples to ensure projects respect rights under Section 35 of the Constitution Act, 1982 and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). An Indigenous Advisory Council will support this process.
Environmental Protections: While streamlining approvals, the act commits to upholding rigorous environmental standards, though specifics remain under scrutiny.

The Building Canada Act aims to boost investor confidence, accelerate construction, and create economic opportunities, particularly for Indigenous communities through an expanded $10-billion Indigenous Loan Guarantee Program.

Bill C-5’s passage through the House of Commons was swift but not without debate:

Introduction: Tabled on June 6, 2025, by the Honourable Dominic LeBlanc, Minister responsible for Intergovernmental Affairs and One Canadian Economy, the bill was prioritized as a key government initiative.
Second Reading and Debate: The bill passed its second reading on June 18, 2025, with support from the Liberal and Conservative parties. The Bloc Québécois and NDP raised concerns about federal overreach and inadequate Indigenous consultation.
Final Vote: On June 20, 2025, the House of Commons passed Bill C-5, reflecting bipartisan support. It now awaits Senate consideration, with committees scheduled to review its provisions from June 16–18, 2025.

Prime Minister Mark Carney has emphasized the bill’s urgency, suggesting Parliament may extend its session beyond June 20 to ensure its passage before the summer.

Bill C-5 promises significant economic and social benefits:

Economic Growth: By removing trade barriers and expediting infrastructure projects, the act is expected to boost GDP and create thousands of jobs.
Consumer Benefits: Harmonized regulations will increase competition and lower prices for goods and services, benefiting Canadian households.
Investor Confidence: Streamlined approvals and a clear regulatory framework will attract domestic and foreign investment, particularly in energy and infrastructure.
Indigenous Opportunities: The expanded Indigenous Loan Guarantee Program and consultation requirements aim to foster economic reconciliation by enabling Indigenous ownership of major projects.
Global Competitiveness: A unified economy positions Canada to strengthen trade relationships with reliable partners and compete in the G7.

Despite its ambitious goals, Bill C-5 has faced significant opposition:

Federal Overreach: Critics, including the Bloc Québécois and NDP, argue that the bill undermines provincial autonomy by granting the federal government authority to override provincial regulations.
Indigenous Rights: NDP MP Leah Gazan has claimed that the bill violates Section 35 of the Constitution Act, 1982 and UNDRIP by failing to ensure robust consultation processes.
Environmental Concerns: Environmental groups worry that streamlined approvals could prioritize economic gains over environmental protections, particularly for projects like pipelines or mining.
Transparency Issues: The Building Canada Act’s exemptions from certain regulations, such as the Access to Information Act, raise concerns about accountability and potential misuse of power.
Regional Disparities: Some fear the bill prioritizes urban and resource-rich regions, potentially neglecting rural communities.

Business Community: The Canadian Chamber of Commerce supports the bill, citing its potential to reduce costs and enhance competitiveness. Small businesses, in particular, benefit from simplified regulations.
Indigenous Groups: Leaders have called for stronger consultation frameworks to ensure meaningful engagement and consent, as mandated by UNDRIP.
Labor Unions: Unions are optimistic about job creation but seek assurances that workers’ rights and safety standards will be protected.
Environmental Advocates: Opinions are split, with some supporting the bill’s potential for clean energy projects and others concerned about environmental risks.
Public Sentiment on X: Posts on X reflect polarized views, with some praising the bill as a “game-changer” for economic unity and others criticizing it as a “power grab” that undermines democratic processes.

Bill C-5 builds on existing initiatives while introducing bold new measures:

Canadian Free Trade Agreement (CFTA): The act strengthens the CFTA by further reducing federal exceptions and enforcing mutual recognition of standards.
Infrastructure Programs: Unlike previous programs like the Investing in Canada Plan, Bill C-5 combines funding with regulatory streamlining to accelerate project delivery.
Indigenous Economic Reconciliation: The expanded Indigenous Loan Guarantee Program aligns with Canada’s commitment to economic reconciliation, enabling Indigenous communities to own stakes in major projects.

As Bill C-5 moves to the Senate, several key developments are expected:

Senate Review: Committees of the Whole will review the bill from June 16–18, 2025, with input from ministers like Chrystia Freeland and Dominic LeBlanc. Amendments may address concerns about transparency and consultation.
Implementation Challenges: The success of the bill depends on federal-provincial cooperation, robust Indigenous consultation, and effective execution by the Federal Major Projects Office.
Public and Legal Scrutiny: Potential legal challenges from Indigenous groups or environmentalists could arise if consultation or environmental standards are deemed inadequate.

Prime Minister Carney has committed to ongoing engagement with Indigenous leaders and provincial premiers to ensure the bill’s success.

The One Canadian Economy Act represents a bold step toward a stronger, more connected Canada.

By addressing internal trade barriers, accelerating infrastructure development, and fostering Indigenous partnerships, it aims to unlock Canada’s economic potential and enhance its global standing.

However, its success hinges on balancing federal authority with provincial and Indigenous rights, maintaining environmental protections, and ensuring transparency.

For Canadians, Bill C-5 promises lower costs, more jobs, and modern infrastructure. For businesses, it offers opportunities for growth and innovation.

For Indigenous communities, it holds the potential for economic empowerment.

As the bill progresses, it will continue to spark debate about Canada’s economic and political future.

What are your thoughts on Bill C-5? Share your perspective and stay informed as this transformative legislation shapes Canada’s economy.

What is Bill C-5 in Canada?

Bill C-5, the One Canadian Economy Act, is a 2025 federal law aimed at unifying Canada’s economy by removing interprovincial trade barriers, enhancing labor mobility, and fast-tracking major infrastructure projects of national interest.

What is the new hate speech law in Canada?

There is no new hate speech law directly associated with Bill C-5. The One Canadian Economy Act focuses on economic integration and infrastructure, not hate speech.

However, Bill C-63, introduced in 2024, addresses online harms and hate speech, amending the Criminal Code to strengthen penalties and regulations.

What does the One Canadian Economy Act mean?

The One Canadian Economy Act (Bill C-5) seeks to create a unified Canadian economy by eliminating federal barriers to internal trade, recognizing provincial standards, enabling worker mobility across provinces, and

Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.