Federal Government Tables Bill Addressing Internal Trade and Major Projects

The Government of Canada introduced new legislation on June 6, 2025, called One Canadian Economy: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, according to Intergovernmental Affairs.

The proposed legislation is intended, according to the government, to address internal trade barriers and create new processes for advancing certain infrastructure projects across the country. The announcement follows recent U.S. tariffs on Canadian goods and discussions among First Ministers, including a meeting in Saskatoon on June 2, where provincial and federal leaders agreed to prioritize major national projects.

According to the backgrounder provided by the government, the bill proposes to remove some federal internal trade barriers and sets out a process for designating and advancing projects of national interest, including highways, railways, ports, airports, oil pipelines, mines, and electricity transmission systems. The government states that the approach will focus on a small number of major projects selected for accelerated review.

The backgrounder notes that for these projects, multiple federal approvals would be consolidated by having a designated minister issue a single conditions document. Consultation with Indigenous peoples on mitigation and accommodation measures would be part of the assessment process, according to the government.

The government plans to create a federal Major Projects Office to serve as the contact point for project proponents. According to the announcement, this office would consult with provinces, territories, and Indigenous rights holders to determine which projects qualify as being of national interest. The office is intended to house an Indigenous Advisory Council and support Indigenous participation in eligible projects. The government states that environmental protections would apply to projects deemed in the national interest.

The legislation aims, according to the government, to shorten decision timelines on designated projects from five years to two years and adopt a “one project-one review” model, coordinating approvals between the federal government and the provinces and territories. The government lists several factors to be considered in determining a project's national interest, including economic benefits, national security, likelihood of completion, advancement of Indigenous interests, and contributions to climate change objectives.

The act references obligations under the United Nations Declaration on the Rights of Indigenous Peoples Act, including Section 5 and the Duty to Consult. The government reports that consultations were held before the legislation was drafted and will continue as the bill proceeds through Parliament.

The government has also announced that it will double the Indigenous Loan Guarantee Program from $5 billion to $10 billion to broaden Indigenous ownership in major projects.

On labour and trade, the bill provides a framework for mutual recognition of provincial and territorial standards for goods and services, and for licensing and certification of workers in federal jurisdictions, according to the government. The government indicates this builds on a previous mutual recognition project in the trucking sector and intends to expand such practices to other sectors. The government also projects the removal of additional federal exceptions from the Canadian Free Trade Agreement by July 2025.