Prime Minister Mark Carney's government has introduced Bill C-5, the "One Canadian Economy" bill, to dismantle interprovincial trade barriers and expedite the approval of major infrastructure projects. This legislative move seeks to unify Canada's fragmented internal market and strengthen its economy amid escalating trade tensions with the United States.
It was tabled after a first ministers' meeting in Saskatoon, during which Prime Minister Mark Carney, premiers, and territorial leaders discussed expediting major projects and interprovincial trade. The proposed legislation targets the elimination of federal obstacles to interprovincial trade and labor mobility.
Carney said that these internal barriers cost the Canadian economy approximately $200 billion annually. By aligning federal regulations with those of the provinces and territories, the bill will create a cohesive national market for the free movement of goods, services, and labor across Canada.
“With the ‘One Canadian Economy’ bill, we are aligning federal rules and regulations with those from the provinces and territories, helping to create one market, not 13,” Carney said on Friday, June 6.
The Canadian Chamber of Commerce supported the initiative, noting that while it may not entirely counteract the effects of a trade war with the US, it represents a significant step toward internal economic integration.
Matthew Holmes, the Chamber's chief of public policy, stated that eliminating exceptions to the Canadian Free Trade Agreement is a logical progression toward true free trade within Canada.
Accelerating Nation-Building Projects
In addition to addressing trade barriers, the bill proposes a streamlined process for approving major infrastructure projects deemed of national interest. The government plans to establish a federal office dedicated to expediting project approvals, potentially reducing timelines from up to a decade to just two years.
Eligible projects would include those in the energy, mining, and transportation sectors, provided they offer significant economic and environmental benefits, such as carbon emission reductions and support for Indigenous communities.
Respecting provincial governments' autonomy, Carney has assured that no projects will proceed without their consent.
However, some provinces, including Alberta and British Columbia, have expressed differing views on specific projects.
Responding to US Trade Pressures
The introduction of the "One Canadian Economy" bill comes in the wake of increased US tariffs on Canadian exports. Carney has labeled these tariffs as "unlawful" and emphasized the need for Canada to bolster its domestic economy.
Carney's approach includes engaging with the oil industry to balance environmental goals with economic growth.
Discussions have centered around supporting new pipelines and carbon capture initiatives, aiming to position Canada as an energy leader while reducing reliance on U.S. markets.
Legislative Outlook
The government wants to pass the "One Canadian Economy" bill before Parliament's summer recess, though the timeline remains tight. As a minority government, the Liberals will need to garner support from opposition parties to ensure the bill's passage.
The outcome will significantly influence Canada's economic strategy and its ability to navigate current and future trade challenges.
This legislative effort represents a bold move toward unifying Canada's internal market and enhancing its economic sovereignty. If successful, it could pave the way for increased domestic trade, improved infrastructure, and a more resilient national economy.
Source Name : Economic Times