Frequently asked questions about the One Canadian Economy Act

Frequently asked questions about the One Canadian Economy Act

Frequently asked questions about the One Canadian Economy Act

Why was the One Canadian Economy legislation introduced?

The One Canadian Economy legislation was introduced to maximize Canada’s economic potential and reduce our reliance on the United States by removing federal trade barriers within Canada and advancing projects in the national interest.

What are the parts of the legislation? 

There are two pieces of legislation included in The One Canadian Economy Act.

1. Internal Trade (Free Trade and Labour Mobility in Canada Act)

This legislation provides a framework to recognize provincial and territorial requirements comparable to federal requirements on interprovincial trade. It removes federal trade barriers, making it easier for businesses to trade goods and services, and for skilled workers to do their job across Canada. It ensures that a business following provincial or territorial rules is not held up by any comparable Government of Canada rules that pertain to interprovincial trade, removing duplication and cutting red tape. It also means that a worker with a work authorization from a province or territory can easily get the federal work authorization for the same job. 

This legislation applies where Government of Canada rules on interprovincial trade overlap with those of provinces and territories, such as rules about energy efficiency for appliances and organic foods. Areas where the Government of Canada is the only authority, such as airlines and banking, are not affected. 

2. Projects of National Interest (Building Canada Act)

This legislation will provide regulatory certainty and help streamline the process for national interest projects.

Based on factors set out in the legislation, and following consultation with provinces and territories and Indigenous Peoples, a government order will list projects that are in the national interest in a schedule to the legislation. This list can be added to over time for a period of five years. Once a project is designated, subsequent federal regulatory approvals are deemed to be granted to allow the project to proceed, subject to conditions that will be established by the Minister of One Canadian Economy within two years.

The legislation provides a single decision on a project upfront, which would eliminate “downstream” decisions under related pieces of legislation about whether the project can proceed, including decisions under the Impact Assessment Act.

Project proponents will continue to provide the requisite information to federal agencies and departments, including the Impact Assessment Agency of Canada. However, instead of multiple ministers rendering individual regulatory decisions pursuant to their statutory authorities, those ministers would inform and advise the Minister of One Canadian Economy, who would issue a single “conditions document.” Indigenous consultation will also be undertaken on impacts to rights and to develop appropriate responses, including avoidance, mitigations, and, as appropriate, accommodation measures that may be required prior to the issuance of the conditions document.

Once issued, the document would constitute a federal permit, decision, or authorization under applicable statutes.

How will the interests of Indigenous Peoples be reflected in these national interest projects?

Indigenous consultation on projects of national interest is required throughout the process, including at the early stage of designating a project under the Act, throughout the development of conditions needed to meet legislative and regulatory requirements, and any amendments to those conditions required during the lifecycle of the project.

This legislation seeks to advance Indigenous interests through opportunities for shared economic benefit and participation in major projects going forward, including Indigenous ownership.

Why was this bill passed so quickly?

The One Canadian Economy Bill was advanced with urgency given the need for a timely response in the current economic context.

In response to changes to Canada’s longstanding economic partnerships, Canada needs to immediately bolster its economic resilience by encouraging internal trade, diversifying external trade, building trade-enabling infrastructure projects, and responsibly developing energy and natural resources.

Canada must build critical new infrastructure at speeds not seen in generations. This includes the infrastructure to diversify our trading relationships and to become an energy superpower in both clean and conventional energies.

We must also remove federal barriers to the movement of goods, services, and workers across Canada to help grow our economy.

To meet the moment, the new One Canadian Economy legislation provides a framework to remove federal trade barriers and to advance major projects of national interest, so Canada can be stronger at home and abroad.

Despite the speed at which it was enacted, this legislation followed all necessary Parliamentary procedures for the legislative process, and incorporated feedback from Indigenous representative organizations who were consulted on the proposed legislation.

The legislation provides an enabling framework, with opportunities for further consultation before it is implemented – through regulations to remove internal trade barriers, and through the process for listing and developing conditions on projects of national interest.

The legislation ensures that Canada is taking immediate steps to improve productivity, growth, and economic competitiveness, while ensuring that federal standards for health, safety, environmental protections and for respecting Indigenous rights, are upheld.

Frequently asked questions about the Building Canada Act

Answers to top questions about the Building Canada Act

How does the Building Canada Act differ from the existing legislative and regulatory regime? What changes in the approval process for these projects?

Major projects are normally subject to approvals, permits and authorizations under various federal laws – such as the Impact Assessment Act, Fisheries Act, and Species at Risk Act.

The determination that a project is in the national interest sets in motion a more flexible and streamlined process for regulatory decisions about the project that has three important elements: 

  • First, the Act provides that subsequent federal regulatory approvals, listed in the legislation, are deemed to be granted to allow the project to proceed, subject to conditions that will be established by the Minister designated as responsible for the legislation. This effectively substitutes for the "downstream" approvals about whether the project can proceed, including decisions under the Impact Assessment Act.
  • Second, project proponents will continue to provide the requisite information to federal agencies and departments, including the Impact Assessment Agency, who will review the project as they would in the ordinary course. However, the focus of these reviews would shift from a decision on ‘whether’ the project should proceed, to inform ‘how’ the project should proceed.
  • Another key difference is that instead of multiple ministers rendering individual regulatory decisions pursuant to their respective statutory authorities such as the Fisheries Act or a decision on migratory birds, those ministers will inform and advise the designated minister, who will then issue a consolidated “conditions document.”

The conditions document, once published, would be deemed to constitute a permit, decision, or authorization under all applicable statutes. It would be enforceable by the responsible ministers as though it were issued under their individual existing statutory authorities. 

An adaptive management approach will be taken so that conditions can be modified throughout the lifecycle of the project, if required, to account for changing circumstances. The conditions can also be sequenced to avoid delays if certain conditions are not ready for implementation.

Furthermore, the Government will have the authority to modify requirements through regulations, if required, on a project-by-project basis.

What is a project of national interest under the Building Canada Act? What are the specific criteria being evaluated and who is evaluating them?

Section 5 of the Building Canada Act provides a framework for consideration of whether a project is in the national interest, namely, the extent to which the project can:

  • Strengthen Canada’s autonomy, resilience and security;
  • Provide economic or other benefits to Canada;
  • Have a high likelihood of successful execution;
  • Advance the interests of Indigenous Peoples; and
  • Contribute to clean growth and to meeting Canada’s objectives with respect to climate change.

These factors allow flexibility to consider a project’s contribution to the national interest across diverse sectors, regions, and contexts, and through meaningful consultation with Indigenous Peoples.

The Major Projects Office will evaluate projects against these factors. This work will be informed by consultation with Indigenous Peoples, provinces and territories, and the expertise of other federal departments and agencies.

What is the Major Projects Office?

The mandate of the Major Projects Office is to attract domestic capital and global investors to Canada by providing more certainty and efficiency to the federal approval process. It will house the necessary financial expertise to help structure financing for major projects, as well as help co-ordinate financing from the private sector, provincial partners, as well as government initiatives like the Canada Infrastructure Bank and the Indigenous Loan Guarantee Program. By accelerating major projects such as ports, railways, pipelines, and energy corridors, the Office will better position Canada to get products to market domestically and internationally.

The Major Projects Office will help streamline the federal approval process to get major projects built faster. It will act as the single point of contact for governments, industry, and Indigenous communities to get nation-building projects approved faster. The Office identifies projects that are in Canada’s national interest and fast-tracks them. It streamlines the approval process by creating a single set of conditions, therefore reducing the approval timeline for projects of national interest from a maximum of five years to a maximum of two years.

What is the Indigenous Advisory Council?

The Indigenous Advisory Council — with First Nations, Inuit, and Métis, and Modern Treaty and Self-Governing communities’ representation — supports the Major Projects Office by ensuring that partnership and Indigenous economic participation are embedded in major projects advanced in Canada. The Council will provide expert advice and recommendations to the Office and the Minister of the One Canadian Economy Act on policy, operational practices, and process improvements related to the inclusion of Indigenous perspectives on and interests in major projects.

The establishment of the Indigenous Advisory Council does not replace consultations with rights-holders or the government’s commitments under the United Nations Declaration on the Rights of Indigenous Peoples Act and the Principles Respecting the Government of Canada’s Relationship with Indigenous Peoples. While Council members may engage with Indigenous Peoples, communities and organizations to help inform their advice in areas related to their mandate, the Duty to Consult is a requirement that will be carried out by the government and not the Council.

What projects have been proposed and which have been designated in the national interest?

On September 11, 2025, the Prime Minister announced the first series of projects being referred to the Major Projects Office for consideration. While these are not projects designated in the national interest, these are projects that have been deemed to be of national importance and significance, and have been referred to the Major Projects Office for further assessment and consultations. The Major Projects Office will continue to work with proponents, provinces and territories, and Indigenous Peoples, to find the right way forward for each project.

The Prime Minister also announced strategic areas of focus and activity that will be transformative for Canada and Canadians. These transformative strategies are either concepts or project areas that have boundless potential but are at an early stage and require further development. The Major Projects Office will create business development teams to work with provinces and territories, proponents, and Indigenous peoples to further develop and make these national interest strategies a reality.

Information about these projects and strategies are listed on the Major Projects Office website.

This is only the first initial set of projects. The Government of Canada and the Major Projects Office will continue to review these and other projects, and make further announcements over the coming months.

How many other projects is the Major Projects Office considering?

The Major Projects Office is considering and reviewing a number of projects – both projects that are deemed to be of national importance and significance and other transformative strategies (concepts and projects).

The Government of Canada and the Major Projects Office will continue to review these and other projects, and make further announcements over the coming months.

How are you ensuring the protection of the environment?

Projects will continue to be subject to all regulatory review processes that would ordinarily apply, varying depending on the project type and sector. This includes Acts and regulations to protect the environment as well as to respect Indigenous rights.

Once the review process, including consultations with Indigenous Peoples are completed, the Minister of One Canadian Economy will issue a single set of binding conditions for the project. These conditions will include mitigation measures to protect the environment that would otherwise be issued under separate acts, such as the Species at Risk Act or Migratory Birds Convention Act.

While the discretionary decision points under those Acts and regulations will be deemed conditionally approved, the proponent will continue to follow processes to provide information to the relevant departments and agencies, to inform the development of a conditions document that will take the place of the authorizations under each of the Acts and regulations. All federal environmental protection requirements that are not the subject of an authorization will continue to apply. These include, for example, regulatory restrictions on the use of toxic substances, air and water pollution, and GHG emissions. If a proponent does not meet those required conditions, the project cannot move forward.

Frequently asked questions about the Free Trade and Labour Mobility in Canada Act

Frequently asked questions about the Free Trade and Labour Mobility in Canada Act

What goods and services will be affected by the removal of federal requirements?

Under the Act, the federal government unilaterally recognizes comparable provincial and territorial requirements. Examples of the goods, which will be affected by the removal of federal requirements include:

  • Home appliances (washing machines, dishwashers, etc.)
  • Heating and air conditioning equipment
  • Lighting products
  • Water heaters

If a provincial or territorial regulation is deemed comparable, what happens?

If a provincial or territorial good or service is recognized as meeting comparable federal requirements, it is deemed to meet federal requirements for interprovincial movement of goods or provision of services.

The same applies for workers, where a worker authorized to work in a province or territory would be authorized to work the same occupation in federal jurisdiction without the need for further approvals or requirements.

What types of jobs/occupations will be impacted by this legislation?

The Free Trade and Labour Mobility in Canada Act will strengthen labour mobility so that any worker authorized to work in a province or territory can seamlessly be authorized federally for a comparable occupation.

The federal government regulates several sectors, such as air, rail, and marine transportation (e.g., airports, ports, ferries), radio and television broadcasting, telecommunications, and more. In Canada, approximately 20% of jobs are in professions regulated by certificate, licencing, or registration requirements. Of this national total, roughly 10% are licensed at the federal level.

Examples of occupations in federal jurisdiction that fall within scope of the Free Trade and Labour Mobility in Canada Act:

  • Land surveyors who currently require a federal licence to work on federal projects will have their provincial or territorial licence recognized, reducing delays and paperwork.
  • Locomotive engineers who hold a valid provincial or territorial certification will be able to more quickly and easily secure a comparable federal authorization.

Occupations not covered by this legislation include those that are regulated solely by provinces and territories, such as doctors, nurses and construction workers, as well as those regulated solely by the federal government.

Does the Act require me to change my existing business processes?

There is no requirement under the Free Trade and Labour Mobility in Canada Act for businesses following federal requirements on interprovincial trade to change their existing processes or to meet comparable provincial and territorial ones.

Once the Act comes into force, businesses will have the option to:

  • continue following federal requirements on interprovincial trade as they have in the past, or,
  • meet comparable provincial and territorial requirements.

However, many businesses can benefit from the Act and its regulations.

To help businesses understand the Act and how to take advantage of it, a user guide will be available online in December 2025. This guide will clarify where the Act applies, how businesses can take advantage of it, and who to contact to answer any questions.

Will this legislation result in the lowering of federal standards?

The Government of Canada has listened to feedback from industry, businesses and labour representatives in drafting the regulations, to ensure that the Free Trade and Labour Mobility in Canada Act does not apply to areas where there is an unacceptable risk to the health, safety and security of Canadians, their social and economic well-being and the environment.

Based on their feedback, there are two main exceptions to the Free Trade and Labour Mobility Act.

a) Federal standards for food commodities

The Free Trade and Labour Mobility Act will not apply to food safety requirements for products under the Safe Food for Canadians Act and regulations.

Industry stakeholders and provinces and territories expressed strong support for the federal food system to remain the basis of food trade in Canada.

The Safe Foods for Canadians Act is built on stringent, science-based international food safety and animal welfare standards. It allows the Canadian Food Inspection Agency to know who is trading food in Canada and gives it oversight powers to assess business compliance, inspect and sample food, and to take enforcement action when non-compliance is found – protecting the health and safety of Canadians.

The system also protects Canadian exports by maintaining a high level of confidence in Canada’s food safety system. Trading partners grant Canadian businesses access to their markets based on regular assessments of the strength and integrity of Canada’s federal food system. With a food export market of over $64 billion a year, preserving the existing system is paramount to Canada’s continued reputation as a reliable and high-quality food producer and exporter, and to our continued ability to access, diversify and grow its food export markets.

b) Supply-management for poultry, dairy and egg products

The Free Trade and Labour Mobility Act will not apply to poultry, dairy and egg products governed by Canada’s supply management policy framework.

Supply Management controls the supply of dairy, poultry and eggs to ensure Canadian consumers have access to a high-quality and secure supply of these products at stable prices without shortages, while supporting fair returns for farmers.

This exception is necessary to avoid any unintended consequences to the supply management system, which relies on complimentary provincial and federal measures to balance supply and demand across the country.

How does this Act relate to similar legislation passed by provinces and territories?

Several provinces have introduced similar types of legislation, most of which include a reciprocity requirement. The Free Trade and Labour Mobility Act does not require provincial or territorial action.

In parallel, at their November 19, 2025 meeting, the Committee on Internal Trade, which is made up of federal, provincial, and territorial Ministers of Internal Trade, signed the Canadian Mutual Recognition Agreement. This ensures that businesses can sell their goods across Canada without having to meet duplicative regulatory requirements, unless the good is specifically exempted from the agreement.

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2025-12-11