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.
Determining that a project is in the national interest: Based on factors, including those set out in the legislation 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 listed in schedule 2 of the legislation are deemed to be granted to allow the project to proceed, subject to conditions that will be established by the designated minister 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.
Designated minister to issue single federal permit: 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 designated for the purposes of the Act, 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.
Who was consulted in developing this Act?
With respect to the Free Trade and Labour Mobility in Canada Act, provincial and territorial governments, Indigenous groups and organizations, and national and subnational business organizations were consulted in the development of the legislation, and asked about federal barriers they thought should be addressed.
With respect to the Building Canada Act, the federal government consulted with provincial and territorial governments, Indigenous Peoples, and stakeholders over the past two years to seek views on efficiencies in the federal regulatory process for major projects. This feedback informed the development of the Bill. In addition, information about the proposed legislation was shared with Indigenous Peoples ahead of its introduction.
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.
The United States imposition of tariffs has upended Canada’s longstanding economic partnership with its southern neighbour. In response, 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
What projects have been proposed and which have been designated in the national interest? What is the timeline for an initial list of national interest projects?
To date, no projects have been designated as being in the national interest under the Building Canada Act. The federal government is working collaboratively with provinces, territories, and Indigenous groups to identify and advance projects that serve the national interest and benefit communities across the country.
It’s important that we take the time to consult all parties before moving forward on the designation of nation-building projects.
However, we are moving swiftly as the provinces and territories and many Indigenous Peoples want to see critical projects like mines, pipelines, ports, and other infrastructure advance in support of their priorities.
In addition to consultation requirements with Indigenous Peoples, provinces, and territories, a 30-day notice must be published in the Canada Gazette before a potential project can be designated as being in the national interest. Publication in the Canada Gazette ensures that potential projects are made public through an established and transparent process.
What is the Federal Major Projects Office?
A federal major projects office will be established to help – among other things - implement the new process for national interest projects.
The Office will serve as a single point of contact, and information, for proponents, in order to work with the various implicated departments and to coordinate approvals. The Office would help further expedite the process and keep reviews on track.
The Office will benefit from support from an Indigenous Advisory Council with First Nations, Inuit, and Métis representation.
What is the Indigenous Advisory Council?
The government has committed to establishing an Indigenous Advisory Council — with First Nations, Inuit, and Métis representation — which will support the work of the Federal Major Projects Office by ensuring Indigenous perspectives and priorities are integrated throughout the Building Canada Act implementation process. Details of the Advisory Council remain to be determined, and details will follow as soon as possible.
Additionally, the federal government is dedicating $40 million in funding to ensure meaningful participation of Indigenous Peoples in the Building Canada Act implementation process.
Canada will uphold its constitutional obligations to consult Indigenous Peoples to ensure projects proceed in ways that respect and protect Indigenous rights. We are working in a way that respects our commitments to the implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act and the Principles Respecting the Government of Canada’s Relationship with Indigenous Peoples.
Are you consulting with provinces, territories, and Indigenous Peoples?
With the Building Canada Act in place, the Government of Canada is immediately moving forward to consult with provinces, territories and Indigenous Peoples—as required under the Act—to determine the initial list of national interest projects. Engagement between federal, provincial/territorial, and Indigenous Peoples will continue to be a feature of Canada’s evolving system of cooperative federalism.
Consultations with provinces and territories have already begun, beginning with the First Ministers Meeting held in Saskatchewan on June 2, 2025. Over the coming weeks and months, as projects are identified for consideration, discussions between federal ministers and their provincial and territorial counterparts, and with departmental officials will continue. The approach will feature coordinated and collaborative efforts among federal, provincial and territorial governments, working in partnership with Indigenous partners.
The Prime Minister met with First Nations, Inuit, and Métis groups, to ensure that Indigenous participation is at the heart of the implementation of the Building Canada Act. The Building Canada Act was designed to transform the Canadian economy and contribute to greater prosperity for Indigenous communities, through equity and resource management projects. To ensure that these major projects are built in partnership with Indigenous Peoples, the government is standing up an Indigenous Advisory Council that will closely work with the new Federal Major Projects Office to help ensure Indigenous perspectives and priorities are integrated throughout the implementation process. Comprised of First Nations, Inuit, Métis, as well as Modern Treaty and Self-Government representatives, the Indigenous Advisory Council will provide advice on the development of policy and practices related to the implementation of the Building Canada Act.
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 potentially impacted Indigenous groups, are completed the Minister responsible for the Act will issue a single set of binding conditions for the project. These conditions will include mitigation measures to protect the environment and the rights of Indigenous Peoples. Where appropriate, accommodation measures will also be considered to protect the rights of Indigenous Peoples.
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. If a proponent does not meet those required conditions, the project cannot move forward.
The Act offers a way to accelerate certain projects that are aligned with immediate priorities by providing decisions upfront. The government’s intent is to shorten decision timelines from five years to two years, while continuing to ensure environmental protections and commitments to Indigenous rights.
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 would have their provincial or territorial land surveyor’s licence recognized.
- Locomotive engineers who hold a valid provincial or territorial certification will be able to have that licence recognized at the federal level and 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. Work has begun to assess any such areas.
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. Stakeholders will be consulted during the regulatory development process.
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 on the Internal Trade website once finalized. Further details will be communicated in due course.
Will there be a grace period for businesses to get to know the new regulations before they come into effect?
The Free Trade and Labour Mobility in Canada Act will come into force with the publication of regulations. At that time, 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.
There is no requirement under the Act for businesses already following federal requirements on interprovincial trade to now meet comparable provincial and territorial ones. Businesses can learn and understand the Act and its regulations at their own speed, taking advantage of benefits in a time frame that works for them.