Carney gov’t tables bill to reduce interprovincial trade barriers, build national projects

Prime Minister Mark Carney’s government tabled much-anticipated legislation on Friday, aimed at reducing interprovincial trade barriers, easing labour mobility and advancing major projects.

“With the ‘One Canadian Economy’ bill, we are aligning federal rules and regulations with those from the provinces and territories, helping to create one market, not 13.” Carneys said Friday.

“That will allow more goods, more services to be transported, sold, and bought across our nation without restriction, generating new opportunities for Canadian businesses and lowering costs for Canadian consumers.”

Interprovincial trade barriers – such as health and safety regulations, varying product standards, or incongruent trade and professional licensing standards – exist to protect jobs regionally, but can result in consumers paying 7.8 to 14.5 per cent more for the goods and services they buy, according to Statistics Canada.

Less than 20 pages in total, the legislation is being billed as the catalyst for Carney’s promise to create “one Canadian economy” by seeking to enact a new “Free Trade and Labour Mobility in Canada Act” and a “Building Canada Act.”

Bill C-5, as it’s been labelled, was tabled by Canada-U.S. Trade and Intergovernmental Affairs Minister Dominic LeBlanc, who stood alongside other key ministers on Parliament Hill Friday as Carney spoke to the measures within it.

“Canada is a country that used to build big things… But in recent decades, it’s become too difficult to build in this country… and it’s holding our country back,” Carney said.

Equivalency for standards on goods, services

In terms of internal trade limits, Carney’s efforts focus on adjusting federal rules and regulations, building on work already undertaken by many premiers to alleviate cross-province restrictions.

Bill C-5 provides “a framework to substantially reduce the burden of federal rules that apply to trade across provincial and territorial borders,” according to briefing materials provided to reporters.

This means that goods or services produced, used, or distributed in line with a province or territory’s standards would also meet the equivalent federal requirement.

One example given by officials ahead of the bill’s tabling was food. If a product meets one province’s organic standards, it would be treated as if it meets the national standard as well.

Similarly, should a washing machine meet provincial energy efficiency requirements, it would be approved federally.

The government says this change would make it easer for Canadian businesses to sell their products across the country, while expanding choice for consumers.

Framework for labour mobility

In terms of easing labour mobility, the government bill seeks to “provide a framework to recognize provincial and territorial licenses and certifications for workers.”

In practice, should Bill C-5 pass, a worker approved by one provincial or territorial jurisdiction would be able to more easily and rapidly work in the same occupation federally.

For example, it would be less burdensome for workers to receive a federal license, as their provincial certification would be recognized. The government says that would also provide employers with a broader candidate base for jobs.

The legislation also includes provisions to give cabinet the power to make regulations respecting the movement of labour within Canada.

Coming out of Monday’s First Ministers’ Meeting, an agreement was made to work together “towards a 30-day service standard for credential recognition,” an official said Friday. This would apply to professions such as doctors and skilled trades workers.

New rules for projects of national interest

There is also a significant portion of this legislation that would change how new major projects can be built, building on Carney’s promise to develop a “one project, one review” approach.

Bill C-5 proposes to speed up the development of these projects, and streamline multiple decision points, seeing the federal government determine whether it is in the national interest. That determination – taken by cabinet – would be weighed by a few factors, including Indigenous and provincial consultation.

The other criteria the legislation outlines are whether a project: strengthens “Canada’s autonomy, resilience and security”; provides “economic or other benefits to Canada”; has “a high likelihood of successful execution”; advances “the interests of Indigenous peoples; and contributes “to clean growth and to Canada’s objectives with respect to climate change.”

“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,” according to the government.

The legislation also proposes to create “a more flexible process” for regulatory decisions about a project, by creating a “two-key” process that seeks to centralize some of the paperwork and decision-taking, such as around impact assessments, consultations and permits.

Carney’s aim, according to officials, is to remove uncertainty, build investor confidence, and shorten the amount of time it takes for approvals, from five years to two years.

When asked to put a dollar figure on the value of the projects that would be unlocked and become eligible under these changes, an official said it was “not possible to say.”

“There’s a lot of potential,” the official— speaking on a not-for-attribution basis – said. “You’ve seen discussions started with provinces through the First Ministers Meeting and initial meetings with Indigenous people. So those conversations have started. There’s a lot of potential, but there’s nothing in the legislation that defines a number of projects. So, it’s too hypothetical to say.”

Questions raised over consensus, scope

The streamlining of approvals is expected to be funnelled through a new “Major Projects Office” which would act as a main hub for contact between proponents and the government.

Though questions remain around how decisions will be taken and what powers provinces or Indigenous stakeholders would have on stopping a project they don’t approve of from going ahead.

Carney said today that he would not “impose a project on a province,” adding that “we need consensus behind these projects and we need the participation of Indigenous peoples.”

Reacting to the proposed bill, Conservative Leader Pierre Poilievre raised concern that the prime minister’s plans don’t go far enough to free the flow of goods or resources.

“It’s a small step, but it is breadcrumbs when we needed a bold move,” Poilievre said, adding that he wanted to talk with his caucus before confirming whether they’ll support the legislation.

“A very small amount of interprovincial barriers will be eliminated by this bill, which is better than nothing, but the tens of billions of dollars of obstacles at a provincial level are untouched because the prime minister has not yet incentivized the provinces to remove them,” he said.

Removing more free trade barriers by July

In addition to tabling this new legislation, the federal government is committing to remove further federal exceptions from the Canadian Free Trade Agreement, by July 2025.

Throughout the election campaign, Carney repeatedly pledged to eliminate interprovincial trade barriers by Canada Day, while his platform promised only to table the necessary legislation by July 1. He also vowed to “remove all federal exceptions under the Canadian Free Trade Agreement.”

While the legislation does not do that, the Liberals made it clear today that they intend to follow-through, and that they do not require legislation to lift the remaining limitations, noting 20 federal exemptions were lifted by the federal government before the election.

According to an official, the remaining exceptions relate to national security or areas where there are “co-legislated frameworks,” with another province or territory.

“We’re continuing to do the analysis to see whether or not they can be dropped,” the official said. “My team and I continue work with other departments to see what do we really need to maintain and does it impact internal trade?”

According to the Committee on Internal Trade, in 2024 more than $530 billion worth of goods and services moved across provincial and territorial borders, representing almost 20 per cent of Canada’s gross domestic product.

Eliminating barriers – both at the federal and provincial levels – is estimated to potentially add up to $200 billion to the Canadian economy.

With just two weeks left until the House of Commons is scheduled to adjourn for the summer, the pressure is on to try to advance this legislation before the break. Today, Carney said the bill is “a top priority for this government, and we will do everything to get it passed before the summer.”

“And if Parliament needs to sit longer, it should sit longer in order to get it passed,” Carney said.

“That’s what Canadians expect.”

With files from CTV News’ Noah Watcher