Feds remove internal trade barriers, fast-track nation-building infrastructure
The One Canadian Economy Act marks a major federal push to remove internal trade barriers and speed up large infrastructure projects.
Bill C-5, the One Canadian Economy: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, received Royal Assent on June 26.
First, through the Free Trade and Labour Mobility in Canada Act, it helps build one strong Canadian economy by eliminating federal trade barriers, enhancing labour mobility, and creating a unified national market – barriers that have held back Canadian businesses and workers for decades.
“In this pivotal moment in Canada’s story, it is clear that the conventional ways of doing business no longer serve us. We must act decisively to secure our future, build big things in this country once again, and cultivate the strongest economy in the G7,” said Tim Hodgson, Minister of Energy and Natural Resources. “Our goal is clear: to make Canada an energy superpower.”
Internal trade is the over $530 billion worth of goods and services that are exchanged across Canadian provincial and territorial borders every year – nearly 20 per cent of our entire economy.
But despite how simple this may seem – and how important it is to our economy – for too long, it has been easier to trade with countries like the United States than among ourselves.
The impact of these barriers is like imposing tariffs of nearly 7 per cent on our own goods, in our own country. Removing these barriers, on the other hand, could unlock up to $200 billion in Canadian economic growth.
With this new legislation, the Government of Canada has removed the federal obstacles that have prevented the free flow of goods and services between all provinces and territories. For example, a food product certified as organic under one province’s standards, or a washing machine meeting a province’s efficiency regulations, are now accepted under comparable federal rules.
The government is also enabling workers to move freely across provincial boundaries and pursue employment opportunities without federal restrictions. For example, an electrician certified in Ontario could move to a similar job in Alberta without the extra paperwork. With these measures, the federal government is clearing the path for all provinces and territories to follow suit, and many are already on board. As they remove their own barriers, Canada will operate as one seamless national marketplace, allowing businesses, workers, goods, and services to flow freely throughout the country.
The economic impact of this approach is substantial. It is estimated that removing interprovincial trade barriers could lower consumer prices by up to 15 per cent.
But removing trade barriers is only half the equation. Canada also needs the infrastructure to support that expanded activity. The second major component of the Act tackles this challenge by reforming how we build big things in this country: nation-building projects like the roads, bridges, energy systems, and digital networks that can connect our newly unified economy.
The Building Canada Act reforms how Canada builds major infrastructure projects by reducing approval timelines to two years while maintaining environmental protections and Indigenous consultation.
“We are removing barriers, leveraging Canada’s resources and talented workers, centring Indigenous consultation and equity, and continuing to fight climate change – all to get building and to become an energy superpower,” said Hodgson, MP for Markham–Thornhill. “In the new economy we are building, Canada will be defined by delivery, not delay.”
To support this effort, the government will establish a Major Federal Projects Office to guide key projects, partner with provinces, and engage an Indigenous Advisory Council. With Bill C-5, the government signals its intent to turn economic ambition into action.
Photo: “Our goal is clear: to make Canada an energy superpower,” said Tim Hodgson, Minister of Energy and Natural Resources.