Canada’s New Law: Boosting Economy While Raising Concerns
Canada’s parliament has passed a significant piece of legislation, known as the One Canadian Economy Act or Bill C-5, granting the federal government expansive new powers to accelerate the approval process for major infrastructure and resource projects across the country. The bill, which quickly moved through Parliament and received Senate approval, is seen by supporters as a crucial step to bolster Canada’s economy and assert greater national autonomy, particularly in response to trade pressures from the United States under President Donald Trump.
Prime Minister Mark Carney’s government championed the bill, arguing it is essential for navigating an “economic crisis” brought on by US tariffs on Canadian goods like steel, aluminum, and auto products. The legislation allows the federal cabinet to streamline approvals and bypass certain provisions of existing federal laws, such as elements of the Impact Assessment Act, which proponents argue have caused lengthy delays in project development. The goal is to shift the focus from questioning “whether” a project gets built to determining “how,” accelerating development from “delay to delivery.”
“Nation-Building” and Economic Growth
The government frames the One Canadian Economy Act as a “nation-defining” bill designed to “remove trade barriers, expedite nation-building projects, and unleash economic growth.” Beyond fast-tracking major developments, it also includes provisions aimed at reducing internal trade barriers between provinces and simplifying licensing for certain workers.
While the law doesn’t specify which projects will be prioritized, the Prime Minister has indicated it could be applied to a wide range of initiatives deemed in the “national interest.” These include:
Energy corridors like pipelines and electricity grids
Expansion of mines and ports
Highways and railways
Airports
Clean energy projects and nuclear developments
Strategic infrastructure in the Arctic to assert sovereignty
The objective is to boost Canada’s economic output, enhance resilience, reduce reliance on other nations, and diversify markets, ultimately aiming for Canada to be the strongest economy in the G7.
Criticism and Concerns Over Indigenous Rights
Despite broad support for the bill’s passage in the House of Commons, including from both Liberal and Conservative MPs, it has faced significant opposition and raised serious concerns, primarily from Indigenous groups and environmental activists.
Critics argue that the accelerated timeline for approvals – which the government aims to complete within two years – risks undermining crucial environmental reviews and stifling opposition voices. A major point of contention is the potential impact on Indigenous rights and the process of consultation. While the legislation states the government will consult with Indigenous Peoples, critics fear that the rushed schedule will lead to inadequate consultation and a failure to secure free, prior, and informed consent (FPIC), a principle enshrined in the UN Declaration on the Rights of Indigenous Peoples, which Canada has endorsed but is notably absent from the bill itself.
Senator Paul Prosper, a member of the Mi’kmaq Indigenous group, was a vocal critic during the Senate debate. He unsuccessfully sought an amendment to require consent from Indigenous groups before projects proceed. He argued that the speed at which the bill passed was too fast, requiring only “a few more months” for meaningful consultation with rights holders. Senator Prosper warned that while development is needed, progress should not come “on the backs of Indigenous Peoples” and expressed concern that the law could allow the government and industry to disregard Indigenous rights, describing the accelerated process as potentially “not reconciliation” but a “betrayal of it.” Other senators echoed concerns about prioritizing speed over the protection of Indigenous rights and environmental safeguards, with some warning that rushing the bill could paradoxically lead to project delays due to potential Indigenous-led legal challenges.
The Assembly of First Nations (AFN) also urged the Senate to slow down the bill’s passage, expressing anxiety that accelerated approvals would sideline their rights. The AFN National Chief highlighted concerns about a proposed government-appointed Indigenous Advisory Council, arguing it would not be accountable to First Nations and could not genuinely represent their diverse positions or be used to claim adequate consultation.
The government has acknowledged these concerns. Prime Minister Carney has committed to personally leading engagement sessions with Indigenous rights holders to discuss consultation, cooperation, and increasing Indigenous equity in major projects to ensure they share in the economic benefits. However, critics remain skeptical about the effectiveness of these discussions given the bill’s fast-tracking powers are already law.
The passage of Bill C-5 is a key victory for the Carney government, fulfilling an election promise to remove interprovincial barriers. It marks a strategic shift towards building internal economic strength as a primary means of countering external trade pressures, balancing ambitious economic goals with ongoing concerns about environmental protection and the crucial importance of Indigenous rights and consultation in national development.
