Canada’s Parliament has passed the One Canadian Economy Act, a sweeping new law that grants Prime Minister Mark Carney’s government broad powers to expedite major infrastructure and economic development projects deemed in the national interest.
Approved by the Senate on Thursday, the legislation enables the federal cabinet to bypass certain regulatory hurdles and accelerate project approvals, aiming to reduce Canada’s economic dependence on the United States amid ongoing trade tensions, including U.S. tariffs on Canadian steel, aluminium, and autos imposed under former President Donald Trump.
While the government argues the law will stimulate economic growth, remove internal trade and labour mobility barriers, and promote nation-building projects such as pipelines, ports, mines, and electricity corridors, it has sparked significant controversy. Critics, especially Indigenous groups and environmental advocates, warn that the legislation risks marginalising opposition voices and weakening consultation standards.
“This law will help remove trade barriers, expedite nation-building projects, and unleash economic growth, with Indigenous partnership at the centre,” Carney said last week. The bill’s passage marks a major win for his administration and fulfils a campaign promise to reduce interprovincial trade barriers by Canada Day on 1 July.
However, Indigenous leaders say the bill may bypass meaningful engagement with communities whose lands and rights could be affected. Senator Paul Prosper, a member of the Mi’kmaq nation from Nova Scotia, unsuccessfully proposed an amendment requiring the government to obtain Indigenous consent before proceeding with fast-tracked projects.
“No one wants to see our communities left behind, but success should not come at the expense of Indigenous rights,” Prosper said in the Senate, criticising the speed at which the bill was passed and the limited consultation with affected groups.
Despite such concerns, supporters like Senator Hassan Yussuff defended the legislation as a necessary response to a national economic urgency. The law does include provisions for Indigenous consultation, but critics argue they fall short of ensuring meaningful participation or consent.
As Canada prepares to implement the new framework, the One Canadian Economy Act is expected to reshape the country’s infrastructure and investment landscape, raising hopes of economic resilience, but also concerns over rights and environmental protections.
