Canada’s Liberal government is racing to finalize Bill C‑5 — the One Canadian Economy Act — before the summer recess, aiming to dismantle interprovincial trade barriers and fast‑track major infrastructure and resource megaprojects. Introduced by Prime Minister Mark Carney in June, the legislation encompasses two pillars: Part 1 dismantles internal trade restrictions to boost economic mobility, while Part 2 powers ahead with nation‑building infrastructure approvals.
Passed by the House of Commons on 20 June — the final sitting day — Bill C‑5 One Canadian Economy Act now awaits consideration in the Senate, where the government is confident it will clear by 27 June. With trade tensions from the U.S. looming large and prolonged regulatory delays, Carney has branded these reforms a “hinge moment” for Canada’s economic revitalization, emphasizing their role in unleashing growth across sectors such as critical minerals, energy, clean tech, and transportation.
A key provision grants the federal cabinet sweeping authority to override existing laws and expedite permits for projects designated “in the national interest.” Though modified to exclude areas like the Criminal Code and Hazardous Products Act, the legislation still empowers the cabinet to issue one-stop authorizations, effectively sidelining traditional regulatory frameworks.
Carney and Indigenous Affairs Minister Mandy Gull‑Masty stress that First Nations will be fully involved through consultation and even offered equity stakes in projects, asserting that the legislation centres on “free, prior and informed consent” . Despite these assurances, First Nations leaders remain resolute in their opposition. Cindy Woodhouse Nepinak, National Chief of the Assembly of First Nations, called for a legislative pause to allow meaningful review, warning the bill risks trampling constitutional rights and sparking protests akin to the Idle No More movement of 2012.
In provinces mirroring these dynamics, Bill 5 One Canadian Economy Act in Ontario — the Protect Ontario by Unleashing our Economy Act — is generating fierce resistance for designating “special economic zones,” especially in the mineral‑rich Ring of Fire. Critics say the zones would sidestep environmental, labour, and municipal regulations. Grand Chief Alvin Fiddler of the Nishnawbe Aski Nation decried it as “a direct attack on our nations, our people, our treaties and our future generations,” and pledged confrontation “on the ground”.
Despite these tensions, Ontario’s government is reaffirming steps to adjust the bill, including rewriting the preamble to affirm consultation duties. Meanwhile, Justice Minister Sean Fraser issued an apology for remarks suggesting consultation doesn’t equate to a veto, acknowledging that such missteps “eroded very precarious trust” with Indigenous communities.
Critics caution that Bill C‑5 leans toward coercive nation‑building rather than genuine reconciliation. Joel Abram, Grand Chief of the Association of Iroquois and Allied Indians, stated, “Economic reconciliation without legal and moral responsibility is just another form of coercion,” warning the legislation treats rights as transactional. Legal experts and Indigenous advocates argue that without authentic free, prior and informed consent, the bill threatens to escalate into prolonged legal disputes and nationwide protests .
Proponents, however, highlight the economic imperative. Carney and a growing coalition of business, trade and resource leaders view the bill as critical to unlocking Canada’s long‑dormant potential—streamlining internal trade and unleashing investment across critical infrastructure sectors.
As Bill C‑5 heads to the Senate, the nation stands at a crossroads. With strong alarm from Indigenous communities and early support from business sectors, the act risks deepening the divide between economic ambitions and reconciliation goals. Whether engagement efforts will assuage concerns or fuel broader conflict remains to be seen.
