Canadians expect progress on domestic trade barriers, and Carney is poised to deliver

By Yiannis Damellos

The Angus Reid Institute has just published its first poll on Prime Minister Marc Carney's popularity, showing he begins his term with a 57 percent approval rating—comparable to, though slightly lower than, that of his predecessors. To his credit, Carney has committed to working through the summer to pass a new bill aimed at accelerating the approval of major projects. As he and the provincial premiers have agreed on the criteria for defining projects in the "national interest," Carney pledged to ensure the passage of the "One Canadian Economy" legislation before the summer break. Furthermore, he has indicated that if the bill does not pass, Members of Parliament may need to remain in session over the summer to secure its adoption.

The first approval ratings are positive

As the nation’s leaders work to “Trump-proof” Canada’s economy, optimism stemming from meetings between Prime Minister Mark Carney and provincial premiers was quickly tempered by U.S. President Donald Trump’s announcement of a doubling of tariffs on Canadian steel and aluminum later that week. Generally, Canadians express confidence in some of the government’s priorities while being less optimistic about others. Over half (57%) approve of Carney's early actions, while 29% disapprove, and approximately one in seven (15%) remain unsure.

This positivity extends to several key government initiatives. Three in five Canadians are confident that the Liberals and Carney will make significant progress in removing inter-provincial trade barriers, a focus of discussions in Saskatoon this week. Strengthening relationships with like-minded nations also contributes to this confidence. However, the relationship with the United States, which Carney described as entering a new phase, inspires less optimism, with twice as many Canadians expressing doubt about making progress in this area compared to those who feel positively.

Two other key priorities for Carney and the Liberals generate significant skepticism. Seven in ten (69%) are not confident in achieving reductions in government operational spending, and three-quarters (74%) are pessimistic about making significant strides in reducing housing costs. This sentiment is nearly identical among homeowners (75%) and renters (73%).

Top Priority to pass the “One Canadian Economy” bill before summer break

In light of these challenges, the Prime Minister stated that his government will “do everything” to pass its “One Canadian Economy” legislation before the summer break. He emphasized that if necessary, MPs may need to sit over the summer to ensure its adoption.

On Friday, Intergovernmental Affairs Minister Dominic LeBlanc introduced “An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act,” aimed at removing federal barriers to internal trade and labor mobility while expediting the approval of “nation-building projects.”

“Today is an important day for Canada, one that has literally been decades in the making,” Carney remarked at an Ottawa press conference alongside ministers LeBlanc, Chrystia Freeland, Tim Hodgson, Rebecca Alty, and Rebecca Chartrand. “We have a tremendous opportunity to build strength at home. This bill helps unlock that potential,” he added.

Carney aims to have the bill passed before June 20, when the House of Commons rises for summer recess. “It is a top priority for this government, and we will do everything to get it passed before the summer. If Parliament needs to sit longer, it should,” he stated.

The bill focuses on getting projects deemed in the national interest built by prioritizing a small number of proposals, including highways, railways, ports, airports, oil and gas pipelines, critical minerals, mines, nuclear facilities, and electricity transmission systems.

Five factors will determine whether a project is in the national interest: its ability to enhance Canada’s autonomy, resilience, and security; provide economic benefits; advance Indigenous interests; contribute to clean growth; and have a high likelihood of successful execution.

Carney noted that it has become “too difficult to build in this country” in recent decades due to numerous reviews and assessments, expressing a desire to change that. “For too long, when federal agencies have examined a new project, the immediate question has been ‘why?’ With this bill, we will instead ask ‘how?’”

The government plans to establish a major projects office to coordinate and expedite project reviews, ensuring collaboration among departments, especially in areas of shared jurisdiction. This office will also include an Indigenous Advisory Council with varied representatives.

First Nations have reservations

The federal government has pledged that the proposed bill to fast-track resource project approvals will adhere to the constitutional duty to consult First Nations. On Friday, the Assembly of First Nations reiterated concerns that the rapid pace of these projects poses a “serious threat” to treaty rights.

“The Assembly of First Nations remains deeply concerned about the lack of time and appropriate processes to fulfill the Crown’s consultation and consent obligations, especially given the potential impact on First Nations’ rights,” the AFN stated.

The government has assured that nation-building projects will only proceed after consultations with the affected provinces, territories, and Indigenous peoples. Once a project is approved, the Major Projects Office will issue a set of binding federal conditions.

Carney also reaffirmed that his government would not impose projects, such as oil pipelines, on provinces, emphasizing the need for “consensus behind these projects.” He expressed encouragement from the First Ministers meeting with provincial and territorial premiers, noting that many provinces support major projects that cross provincial boundaries.

The government has committed to reducing the approval process to two years from the current five. Federal officials, speaking on the condition of anonymity in a technical briefing on the legislation, indicated that while the bill aims to streamline conditions and accelerate the timeline, “the timeline is not legislated.”

Another aspect of the legislation seeks to eliminate internal trade and labor mobility barriers in federal jurisdiction. Carney has stated that lifting all federal, provincial, and territorial barriers over time could add an additional $200 billion to the Canadian economy, which would help mitigate the impacts of the trade war with the United States. “This legislation addresses only the federal portion, which is a small part of the overall barriers,” noted a federal official.

The bill would allow goods or services meeting provincial or territorial standards that are comparable to federal requirements to be deemed compliant for internal trade. For example, a washing machine meeting one province’s energy efficiency standards would be recognized as meeting comparable federal standards for sale elsewhere in Canada.

“For Canadian businesses, this will facilitate the buying, selling, and transporting of goods and services across the country,” the news release stated.

On the labor mobility front, the bill aims to eliminate federal barriers by simplifying the process for workers to obtain federal licenses based on provincial or territorial work authorizations. For instance, a land surveyor in Ontario would not need additional certifications to work on a federal project.

In addition to the legislation, the federal government plans to remove further federal exceptions in the Canadian Free Trade Agreement by July 1. Since the agreement was signed in 2017, the government has eliminated nearly 70% of its exceptions.

Bloc Québécois intends to take its time

While Carney is eager to fast-track the bill’s adoption, at least one opposition party has indicated that this may not happen. Bloc Québécois House leader Christine Normandin stated that her party intends to study the bill thoroughly and hear from experts in parliamentary committees, which are not yet operational.