Canada's Bill C-5 now in effect

'Its success will depend on cooperation from provinces and effective implementation'

Canada's Bill C-5 now in effect

Canada’s Bill C-5 is now officially in effect.

The legislation—titled One Canadian Economy: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act—provides a framework to recognise provincial and territorial licences and certifications for workers. According to the federal government, this means that a worker authorised in a provincial or territorial jurisdiction can more quickly and easily work in the same occupation under federal jurisdiction.

Under the legislation, workers certified in one province or territory will be permitted to work in the same occupation within federal jurisdiction without requiring additional approvals. The government stated it will develop regulations to clarify the definition of “comparable” requirements, which will guide how federal and provincial standards are assessed.

The legislation will not apply in cases where federal authorities determine there is an unacceptable risk to public health, safety, economic well-being, the environment, or international trade objectives.

A plain-language guide will be issued following regulatory approval to assist businesses and workers in understanding where the Act applies and how to access its provisions.

Ottawa introduced the One Canadian Economy legislation earlier this month.

Recently, the Canadian Federation of Independent Business (CFIB) called on governments to address the labour quality and mobility issues that small businesses are currently experiencing.

Building Canada Act

Meanwhile, the Building Canada Act establishes a framework for identifying and advancing projects deemed to be in the national interest. These projects will be selected based on criteria such as economic benefit, feasibility, Indigenous partnership, and contribution to clean growth and climate objectives. The federal government stated that consultation with provinces, territories, and Indigenous rights-holders is required before a project can be added to the Act’s official schedule.

The government is adopting a “one project, one review” model to eliminate duplication between federal and provincial assessments. A new Major Projects Office will be created to serve as a single point of contact for project proponents, supported by an Indigenous Advisory Council comprising First Nations, Inuit, and Métis representatives.

The government also reiterated its commitment to Indigenous participation, noting that no project will be approved without meaningful consultation. To support Indigenous equity participation, the federal Indigenous Loan Guarantee Program has been expanded from $5 billion to $10 billion.

“This legislation provides a clearer path forward for national projects and reduces unnecessary barriers for Canadian workers,” the federal government stated.

The federal Cabinet is scheduled to meet with Indigenous communities throughout the summer to ensure ongoing collaboration in the rollout of the new measures.

Stakeholder commencts

“The One Canadian Economy Act will work towards unifying Canada’s landscape by seeking to pursue the dismantling of interprovincial trade barriers and promoting faster government approvals for projects of national interest,” said Lampros Stougiannos, a partner in Dentons’ Infrastructure and Public-Private Partnership group, and Anoosh Loertscher, an associate in the same group.

“While it lays the foundation for a unified internal market and streamlined project approvals, its success will depend on cooperation from provinces and effective implementation.”

Previously, federal Conservative Leader Pierre Poilievre expressed scepticism over Ottawa’s proposal under the legislation. Regarding labour mobility, he argues that internationally trained doctors should be allowed to practise in Canada if they pass a rigorous test and meet national standards.

“That is one way to knock down barriers between provinces,” he says, according to The Globe and Mail.

Numerous provinces have previously worked to break down interprovincial trade barriers.

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