The imposition by the U.S. of tariffs on Canada has underscored the urgency to quickly address longstanding barriers that have fragmented our economy and limited opportunities for Canadians. Action to remove trade barriers and advance major nation-building projects will help maximize our economic potential and make Canada stronger at home and abroad.
The One Canadian Economy Bill includes legislative proposals to remove federal internal trade barriers and advance national interest projects, provides a framework to strengthen the Canadian economy, diversify our trade relations and increase domestic productivity, resilience, and competitiveness.
To meet the moment, Canada needs to use all the tools at its disposal to get major projects built; projects that will help Canada become the strongest economy in the G7, deepen our trade relationships with reliable partners, and create good Canadian jobs.
At the First Ministers' Meeting in Saskatoon, Saskatchewan, on June 2, First Ministers agreed on the urgency of building major projects that produce and connect clean and conventional energy, goods and services to markets across Canada and the globe. These include projects such as highways, railways, ports, airports, oil pipelines, critical minerals, mines, nuclear facilities, and electricity transmission systems.
This Bill seeks to get projects in the national interest built by focusing on a small number of executable projects and shifting the focus of federal reviews from "whether" to build these projects to "how" to best advance them. The new legislation would streamline multiple decision points for federal approval and minimize uncertainty for proponents.
The goal is to send a clear early signal, to build investor confidence and get projects to investment and construction faster.
This Bill sets out the factors that the Governor in Council may consider when determining whether a project is in the national interest for the process outlined in the Bill. A schedule listing those projects deemed to be in the national interest would be established by government order, in consultation with provinces, territories and Indigenous rights holders, and could be expanded over time.
The legislation also proposes to deliver a more flexible process for regulatory decisions about the project by establishing a "two-key" process:
- First, once a project is listed under the schedule, the legislation would have the effect of securing federal regulatory approvals, subject to conditions that will be established by a designated minister.
- Second, project proponents would still be required to provide the requisite information to federal agencies and departments, including the Impact Assessment Agency, and Indigenous consultation would be undertaken on appropriate mitigation and accommodation measures. Instead of multiple ministers rendering individual regulatory decisions pursuant to their statutory authorities, those ministers would inform the designated minister, who would then issue a single "conditions document". That document, once published, would constitute a permit, decision, or authorization under all applicable statues.
Federal Major Projects Office
The federal government would consider major projects brought forward by provinces, territories, and Indigenous partners, and consult with these same partners in determining projects of national interest. Once declared in the national interest, a project would be prioritized and benefit from a seamless, single point of contact - the federal major projects office.
This office would be responsible for helping proponents as they proceed through the assessment and permitting process. This could include consultation with Indigenous Peoples on appropriate mitigation and accommodation measures to address any impacts to rights and to also help ensure Indigenous ownership and partnerships, providing Indigenous communities with generational economic opportunities, as well as working with provinces and territories in areas of shared jurisdiction. An integral part of the Major Projects Office will be an Indigenous Advisory Council with First Nation, Inuit and Métis representation. The new legislation would ensure environmental protections for projects deemed in the national interest.
Timing for decisions
The legislation offers a way to accelerate certain projects that are aligned with immediate priorities by providing decisions upfront, with the intent to shorten decision timelines from five years to two years, while continuing to ensure environmental protections and commitments to Indigenous rights.
The legislation complements the Government's commitment to a "one project-one review" approach, which is to work with provinces and territories to achieve the goal of a single assessment for projects and better coordination on permitting processes between orders of government.
Factors that make up a project of national interest
Projects of national interest are those that would make a significant contribution to Canada's prosperity, advance national security, economic security, defence security and national autonomy through the increased production of energy and goods, and the improved movement of goods, services and people throughout Canada. They would strengthen access to Canadian resources, goods and services to a diverse group of reliable trade partners.
Certain factors would be taken into account in considering whether a project is in the national interest. These include the extent to which the project can:
- Strengthen Canada's autonomy, resilience and security;
- Provide economic or other benefits to Canada;
- Have a high likelihood of successful execution;
- Advance the interests of Indigenous Peoples; and
- Contribute to clean growth and to Canada's objectives with respect to climate change.
United Nations Declaration on the Rights of Indigenous Peoples Act
The legislation would uphold the Government's commitment under Section 5 of the United Nations Declaration on the Rights of Indigenous Peoples Act and obligations to fulfill the Duty to Consult related to major projects.
The legislation has undergone consultation and engagement. This includes the sharing of the legislative approach, how it would work, and consideration of feedback in the final design. Consultation and cooperation will continue during the Parliamentary process and its subsequent implementation.
Indigenous Loan Guarantee Program
This legislation is also in line with the Government's commitment to the long-term wealth and prosperity with Indigenous Peoples. For that reason, the Government has doubled the Indigenous Loan Guarantee Program from $5 billion to $10 billion - enabling more First Nation, Inuit and Métis communities to become owners of major projects as we move forward with nation-building projects.
Advancing Internal Trade
Across the country, there is a consensus regarding the urgent need to strengthen the Canadian economy and make it easier for business and Canadians to trade goods and services by removing barriers.
This new legislation is aligned with recent efforts from provinces and territories to accelerate the mutual recognition of rules and regulations.
Recognition of provincial and territorial requirements for goods and services
The federal government and provincial/territorial governments sometimes set similar rules and standards on businesses selling and buying the same good or service. The new legislation would provide a framework to substantially reduce the burden of federal rules that apply to trade across provincial and territorial borders.
This means that a good or service produced, used, or distributed in line with the requirements of a province or territory would be recognized as meeting comparable federal requirements. For example, a food product that meets one province's organic standards, or a washing machine that meets provincial energy efficiency standards, would be treated as if it meets comparable federal standards.
Federal recognition of goods that meet comparable provincial requirements will make it easier for Canadian businesses to sell their products across the country and in turn, increase consumer choice for Canadians.
Labour Mobility
The new legislation would provide a framework to recognize provincial and territorial licenses and certifications for workers. This means that a worker authorized by provincial or territorial jurisdiction can more quickly and easily work in the same occupation in federal jurisdiction.
Making it easier for workers to get a federal licence by recognizing workers' provincial or territorial certifications and licences for the same job benefits both workers and employers by providing workers more employment opportunities, and employers a broader selection of candidates.
Mutual recognition in the trucking sector project
This builds on the mutual recognition trucking sector project launched at the Committee on Internal Trade in 2024. At the recent First Ministers' Meeting, Premiers and the Prime Minister agreed that federal-provincial-territorial officials will work together to rapidly expand this work across the sector. Increasing the efficiency of trucking across Canada complements the removal of federal barriers on goods and services across the economy and in key sectors like home building.
Removing additional federal exceptions in the Canadian Free Trade Agreement
In addition to tabling this new legislation, the Government of Canada has also reconfirmed its commitment to remove further federal exceptions in the Canadian Free Trade Agreement (CFTA) by July 2025. This will help provide Canadian businesses with greater opportunity to compete across the country. Since the Agreement was signed in 2017, the Government of Canada has conducted several reviews of its exceptions, removing almost 70% percent of the Government of Canada's 53 exceptions.
