The federal government introduced long-awaited legislation on Friday aimed at reducing interprovincial trade barriers, improving labour mobility, and speeding up the development of major projects across Canada.
With the new “One Canadian Economy” bill, the government plans to better align federal rules and regulations with those already in place across provinces and territories. The goal is to create a single, unified market across the country instead of operating like 13 separate ones.
“This approach will make it easier for goods and services to move freely across Canada, opening new doors for businesses and helping lower costs for consumers,” said Prime Minister Mark Carney.
Currently, various interprovincial trade barriers—such as different safety standards, product regulations, or inconsistent professional licensing—can increase the price of goods and services by 7.8% to 14.5%, according to federal data.
At under 20 pages, the legislation introduces two new acts: the Free Trade and Labour Mobility in Canada Act and the Building Canada Act. Together, these aim to fulfill the government’s commitment to build a truly national economy.
The bill, officially titled Bill C-5, was presented by the Minister of Canada-U.S. Trade and Intergovernmental Affairs, alongside other senior cabinet ministers.
“Canada was once known for building major projects,” Carney said. “But over the years, it has become too difficult to get things done. This legislation is about removing those roadblocks.”
Streamlining Rules for Goods and Services
One key element of the bill is the principle of regulatory equivalency. This means that if a product or service meets standards in one province or territory, it would automatically be considered to meet federal standards as well.
For example:
- A food product that is certified organic in one province would be recognized nationally.
- A washing machine that meets provincial energy efficiency rules would also qualify under federal standards.
This would make it easier for businesses to operate across provincial lines and offer more options to consumers across the country.
Improving Labour Mobility
The bill also seeks to simplify and speed up worker mobility between provinces and territories. It proposes a framework that would allow a worker licensed in one part of Canada to more easily be recognized at the federal level.
For instance, a professional such as a doctor or a tradesperson who is certified in one province would have a faster path to being approved nationally.
The bill gives the federal cabinet new authority to regulate labour mobility and supports an agreement from recent discussions between the prime minister and provincial premiers to create a 30-day standard for credential recognition.
