LOCATION: National
ISSUE/SOURCE: One Canadian Economy Act (Bill C-5)
DATE: July 2025
SUGGESTED RESPONSES
- The United States imposition of tariffs and other trade-distorting policies has put Canada’s economic future at risk.
- To meet the moment, the new One Canadian Economy Act (Bill C-5) will provide a framework for the removal of federal trade barriers and to advance major projects of national interest so Canada can be strong at home and abroad.
- The removal of the remaining federal exceptions to the Canadian Free Trade Agreement was fulfilled through
Bill C-5, which received Royal Assent on June 26, 2025. This completed a key election platform commitment to finalize the work by July 1, 2025.
IF PRESSED
- The One Canadian Economy Act aims to boost the Canadian economy and reduce our reliance on the United States by removing federal barriers to trade within Canada and advancing major projects in the national interest.
- The Act will ensure that a business following provincial or territorial rules is not held up by any comparable federal rules that apply to interprovincial trade, removing duplication and cutting red tape.
- It will also make sure that a worker with a work authorization from a province or territory can easily get the federal work authorization for the same job.
BACKGROUND INFORMATION
- The trade war brought on by the United States has renewed the urgency for Canada to quickly address longstanding barriers that have fragmented our economy and limited opportunities for Canadians.
- The One Canadian Economy Act provides a framework for the multi-pronged efforts needed to liberalize Canada’s economy, diversify our trade relations and increase domestic productivity, resilience and competitiveness.
- The introduction of Bill C-5 was announced along with the Government of Canada’s commitment to remove additional federal exceptions under the Canadian Free Trade Agreement by July 1, 2025. The Bill received Royal Assent on June 26, 2025.
- In January 2025, the Government of Canada removed the majority of exceptions under the Canadian Free Trade Agreement, resulting in the removal of eight transport-related federal exceptions and the amendment of the
two remaining transport-related exceptions (for freight rail and marine transportation).