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

How many goods and services will be affected by the removal of federal requirements? Can you give us an example of these goods and services?

This Act is strictly federal – where the federal government unilaterally recognizes comparable provincial and territorial requirements. There are few economic sectors which have overlapping federal and provincial/territorial requirements. Some examples include agriculture and agri-foods, trucking, and manufacturing.

This new legislation applies to federal requirements on the interprovincial trade of goods and services in these sectors and others.

Examples of where the Act could apply

  • Energy Efficiency Standards – a product meeting Ontario, Quebec or Nova Scotia’s energy efficiency standards (among others) will meet Canada’s comparable standards
  • Organic products – a product certified as organic by Quebec or British Columbia will meet Canada’s organic standards

Examples of where the Act wouldn’t apply and why

  • Excise Tax Act – the GST and HST apply on goods and services, but they are measures of general application rather than requirements that pertain to interprovincial trade (Application clause 7b). The GST and HST must continue to be paid on goods and services.
  • Gasoline – Under the Canadian Environmental Protection Act 1999, the Government of Canada regulates the level of lead content in gasoline, whereas provinces and territories regulate other aspects such as maximum prices for consumers. Gasoline must continue to meet federal environmental protection requirements, as there is no comparable provincial or territorial requirement.
  • The legislation will not apply to areas where the Government of Canada decides there is an unacceptable risk to the health, safety and security of Canadians, their social and economic well-being and the environment. There will be exceptions to the Act in these cases which will be made through regulations. The Act will come into force when the Governor in Council approves these accompanying regulations.

When a provincial or territorial regulation is deemed comparable, what happens? Is the federal government removing its own regulations?

When a good or service produced, used, or distributed in line with provincial or territorial requirements is recognized as meeting comparable federal requirements pertaining to interprovincial movement of goods or provision of services, it will be treated as if it meets federal requirements.

The Government of Canada is not revoking its own regulations; rather, to remove federal barriers to internal trade, it will deem a good or service as having met a federal requirement that pertains to internal trade if it has met a comparable provincial or territorial requirement. 

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.

Will this legislation result in the lowering of federal standards? How are we ensuring the health, safety and security of Canadians is maintained?

This legislation enables the federal recognition of comparable provincial and territorial requirements related to internal trade. In this case, “comparable” means that a provincial or territorial regulation/standard addresses the same aspect of a good or service and is intended to achieve a similar objective.

The Act will not apply to areas where the Government of Canada decides there is an unacceptable risk to the health, safety and security of Canadians, their social and economic well-being and the environment. There will be exceptions to the Act in these cases. Those will be made through regulations.

How will this Act interact with similar legislation passed by provinces and territories (e.g., Nova Scotia, Prince Edward Island, Ontario, Manitoba, British Columbia)?

Several provinces have introduced similar types of legislation, each of which differ slightly from one another and most of which include a reciprocity requirement. An important distinction of this Act is that it works independently of the others – no provincial or territorial action is required.

At their July 8, 2025, meeting, the Committee on Internal Trade, which is made up of federal, provincial, and territorial Ministers of Internal Trade, discussed the efforts by many jurisdictions to accelerate removal of barriers through legislation and memoranda of understanding. The Committee agreed to work together to identify areas of alignment across varying approaches by jurisdictions, including next steps to address gaps.

In parallel, the Committee on Internal Trade is working on a common mutual recognition agreement for the trucking sector and goods, excluding food. These mutual recognition agreements will create benefits for businesses and consumers across the country.

How many 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 would 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 land surveyor’s licence recognized, reducing delays and paperwork.
  • Locomotive engineers who hold a valid provincial or territorial certification will be able to more easily, and quickly, secure a corresponding federal authorization.

Who is preparing the regulations? When and how will they be approved?

The legislation is based on a negative-list approach. This means that all goods and services are included, unless specifically excluded through regulations. The regulations will provide an opportunity to exclude certain federal requirements from the application of the legislation if there are unacceptable risks to the health, safety and security of Canadians, their social and economic well-being, the environment, or international trade obligations. 

The Internal Trade group at the Privy Council Office is responsible for overseeing the regulation-making process for the Free Trade and Labour Mobility in Canada Act. In August 2025, a series of roundtables with stakeholders were organized providing participants an opportunity to engage directly with federal officials on the regulations. Over 100 business, industry and labour representatives attended the roundtables. In parallel, a Notice of Intent was published in the Canada Gazette on August 2, 2025, calling for written submissions.

Through these two approaches, 195 different stakeholders provided feedback and insights, focusing on:

  • The need to align federal, provincial and territorial requirements to eliminate regulatory and administrative barriers and called for federal leadership in fostering collaboration with provinces and territories.
  • Strong support for the Safe Foods for Canadians Act, raising concern for health, safety, and export markets if food safety requirements are lowered.
  • The importance of improving labour mobility and credential recognition, while maintaining professional standards, public safety, and worker protections.
  • Supporting harmonization efforts but concerned with adopting lower standards in areas such as energy efficiency, hazardous waste, and wildlife protections.

Once the regulations are approved by the Governor in Council, a plain language user guide will be available for Canadian workers and businesses, to clarify where the Act applies, how they can take advantage, and who to contact to get answers to their questions. The user guide will be available online once finalized.

Will there be a grace period for businesses to get to know the new regulations before they come into effect?

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

More simply, businesses can learn and understand the Act and its regulations at their own speed, taking advantage of its benefits in a time frame that works for them.

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2025-10-24