Canada's New Law to Accelerate Major Projects Amid Trade Tensions

Thu Jul 17 2025 20:01:43 GMT+0300 (Eastern European Summer Time)
Canada's New Law to Accelerate Major Projects Amid Trade Tensions

Newly enacted legislation empowers Canada's government to streamline federal project approvals for economic growth.


Canada faces heightened trade challenges from the U.S. as it prioritizes national projects under the One Canadian Economy Act, sparking concerns over Indigenous rights.

The Canadian Parliament has successfully enacted a groundbreaking bill, the One Canadian Economy Act, granting Prime Minister Mark Carney's administration authority to expedite approvals for significant national projects. The Senate approved the bill on Thursday, enabling the cabinet to streamline the approval processes of major constructions, which the government argues will enhance economic stability and diminish Canada's reliance on the United States amid ongoing trade disputes fostered by President Trump’s tariffs.

Supporters view this legislation as crucial for bolstering Canada's economy; however, critics, including Indigenous groups and environmental advocates, express concern that the fast-tracking could suppress dissenting voices and sideline important consultations. While the bill does not explicitly dictate which projects will be advanced, there have been indications that it could facilitate the implementation of new energy corridors, including pipelines and electricity networks, as well as the expansion of existing mines and transportation ports.

“This act represents a vital step towards removing trade barriers, expediting nation-building projects, and fostering economic growth, with Indigenous partnerships central to this vision,” stated Carney in a prior address. Alongside reducing restrictions on interprovincial trade and labor mobility, the legislation will provide the government with extensive authority to prioritize projects deemed "in the national interest," which has raised alarms among Indigenous leaders regarding the potential lack of adequate consultation.

The successful passage of this bill marks a notable achievement for Carney, fulfilling a key campaign promise to dismantle interprovincial barriers by Canada Day on July 1st. Trump’s imposition of tariffs on Canadian steel, aluminum, and automotive industries has spurred Carney to adopt measures to fortify the Canadian economy against such external pressures.

Nova Scotia Senator Paul Prosper, representing the Mi'kmaq Indigenous group, criticized the swift progression of the legislation and made a bid to add an amendment mandating Indigenous consent before any project could proceed. He expressed significant apprehension that the haste could overlook Indigenous rights and issues. Echoing sentiments of urgency, Senator Hassan Yussuff defended the bill, highlighting it as a remedy to an "immediate crisis" facing the country. The legislation does assert that consultations with Indigenous peoples will occur prior to fast-tracking projects, but concerns persist regarding the adequacy of these consultations moving forward.

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