A United Canadian Economy

Welcome back to this week’s Voice of Business. These past few months have been intense for businesses, with grand uncertainty and rising costs. We do not know what to expect, any day could bring a new tariff, complicating supply chains and squeezing margins. Despite this, the Government of Canada has taken important steps to address long-standing interprovincial trade barriers that hinder growth and add unnecessary administrative burdens.
This week’s VOB will unpack what to expect from this legislation and, more importantly, how it could impact local businesses.

Bill C-5 aims to create one Canadian economy out of 13 by removing federal barriers to internal trade. The first key measure in Bill C-5 establishes equivalency for provincial standards on goods and services. This means that goods or services produced, used, or distributed according to a province or territory’s standards would automatically meet the equivalent federal requirements. In the past, businesses had to navigate overlapping or conflicting federal and provincial regulations, which led to extra costs for businesses.
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The second major measure would federally recognize occupational certifications and titles authorized by provinces and territories. This is significant for sectors facing skilled labor shortages. For example, an Alberta-certified electrician could work in Ontario without going through a separate federal certification process. This change helps businesses fill vacancies faster and allows workers to move more freely where opportunities are available whether it’s trades, health care, or professional services. For local businesses, this means easier recruitment and a wider pool of qualified candidates.

With the federal government mirroring the authorization of products, services, and credentials, businesses would be able to access broader markets across Canada. Instead of facing a patchwork of different rules in each province, a business in Peterborough could now more easily sell to customers in British Columbia, Quebec, or Nova Scotia—without needing to re-certify or re-test products. This opens the door to increased sales, market expansion, and opportunities to diversify revenue streams.

As noted, many provinces are already working on memorandums of understanding with the federal government to align their standards and streamline trade. They should also review their own compliance processes to identify areas where they might now benefit from these equivalencies, for example, labelling, packaging, or equipment certifications.
Deviating from these past regulations means that businesses will face fewer hurdles to navigate, freeing up time and money that would otherwise go to regulatory compliance. This can be especially helpful for small and medium-sized businesses, which often lack the resources to manage complex approval processes.

While businesses stand to benefit from reduced trade barriers, Bill C-5 also addresses nation-building projects major infrastructure, energy, and economic initiatives with national significance. Under the new legislation, such projects would undergo a single, harmonized approval process, with a target timeline of two years to secure final approval. This creates predictability for businesses and investors, helping them plan and execute major projects more effectively.
Importantly, the legislation also implements meaningful consultation with Indigenous peoples during the process of determining which projects are in the national interest and setting conditions for approval. This ensures that while processes are streamlined, Indigenous rights and interests remain a core part of project development—a key consideration for any business involved in infrastructure or natural resources.

While these measures will strengthen Canada’s internal economy, it’s important to note that they won’t alleviate all the trade challenges with our largest trading partner, the United States. In 2023, about $532 billion worth of goods and services moved between provinces and territories, while annual two-way trade with the U.S. exceeded $1 trillion. This means that while the domestic market offers significant growth potential, businesses must continue to navigate cross-border issues such as tariffs, supply chain disruptions, and regulatory differences.

Finally, this legislation is expected to have positive effects from east to west and north to south. Eliminating barriers at both the federal and provincial levels is estimated to add up to $200 billion to the Canadian economy, unlocking opportunities for businesses in every region, from manufacturers and service providers in urban centers to small businesses and resource industries in remote areas. This is a significant step toward building a more dynamic, competitive, and integrated national economy.