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OTTAWA – The Canadian Constitution Foundation (CCF) today welcomed the introduction of Bill C-5, the proposed One Canadian Economy Act, calling it a historic step toward dismantling the web of internal trade barriers that have long fragmented Canada’s economy and limited opportunities for Canadian workers and businesses. However, the CCF believes there is still more that must be done to ensure the federal government respects exclusive provincial jurisdiction on matters such as natural resources development.

The legislation would create two new federal laws, the Free Trade and Labour Mobility in Canada Act and the Building Canada Act.

The Free Trade and Labour Mobility Act would establish mutual recognition principles for goods, services, and labour mobility across federal jurisdictions.

The CCF has been at the forefront of challenging internal trade barriers through strategic litigation, including landmark cases such as R v Comeau that have clarified the scope of section 121’s guarantee of interprovincial free trade. While the Supreme Court disappointingly upheld New Brunswick’s provincial trade barriers against bringing beer into the province, the decision reminded Canadians of the absurdity of interprovincial barriers to trade.

The organization has also partnered with the Montreal Economic Institute and the Atlantic Institute for Market Studies on the “One Country, One Market” initiative, which has documented the economic costs of Canada’s fragmented internal market.

“This bill represents a significant federal action on internal free trade,” said Joanna Baron, Executive Director of the CCF. “For too long, Canadians have faced more barriers trading with each other than with our international partners. Bill C-5 finally puts the federal government’s money where its mouth is by reducing federal obstacles to the free movement of goods, services, and workers. Now it’s time for the provinces to act too.”

“Economic research consistently shows that internal trade barriers cost Canadian families thousands of dollars annually in higher prices and lost opportunities,” Baron added. “This bill won’t solve that problem overnight, but it’s a crucial first step that we hope will inspire similar action from provincial governments.”

“While this legislation only addresses federal barriers, it demonstrates the kind of leadership we need to see replicated at the provincial level,” said Josh Dehaas, CCF Counsel. “The automatic mutual recognition principle embedded in this bill should serve as a template for provinces looking to fulfil their obligations under section 121 of the Constitution.”

The CCF particularly praised several key features of the legislation:

• Supremacy clause ensuring the Act overrides conflicting federal legislation,
• Mutual recognition of provincial standards for federal purposes, reducing regulatory duplication; and
• Labour mobility provisions that will help skilled workers practice their trades across the country.

The Building Canada Act would allow the federal government to waive certain aspects of the Impact Assessment Act (IAA) and certain environmental laws for designated projects. While these provisions are welcome for expediting projects deemed to be in the national interest, they are only necessary because of the federal government’s overreach with the IAA, and they do nothing for projects that are not designated to be of national importance that are hindered by the Act.

“The fact that this legislation needs to carve out exceptions from the Impact Assessment Act underscores what we’ve long argued—that the IAA itself represents an unconstitutional federal intrusion into provincial jurisdiction,” Baron said. “Rather than creating patchwork exemptions, Parliament should repeal the IAA entirely and return jurisdiction over major infrastructure projects to their proper constitutional place.”

The CCF emphasized that while Bill C-5 represents meaningful progress, significant work remains to address both provincial trade barriers and federal regulatory overreach that continue to limit economic growth and individual freedom.

“The real test will be whether this federal leadership catalyzes broader reform,” Dehaas added. “Section 121 of the Constitution applies to all governments in Canada, not just Ottawa. We’ll continue using every tool at our disposal, including strategic litigation when necessary, to ensure all Canadian governments respect their constitutional obligations to maintain free interprovincial trade and stay within their proper jurisdictional lanes.”

The CCF urges provincial governments to follow this lead by eliminating their own internal trade barriers and fully realizing the promise of a truly national Canadian market.