Carney’s Major Projects and Internal Trade Bill Becomes Law Amid Controversy

Prime Minister Mark Carney’s Liberal government has successfully passed its major projects and internal trade legislation, Bill C-5, which received royal assent on Thursday. The bill, which aims to eliminate federal internal trade barriers and accelerate approval of major infrastructure initiatives, was passed by the Senate without amendments following a swift review.
The legislation enables the federal government to fast-track projects deemed essential to the national economy by bypassing certain environmental regulations and existing legislation. Under the new law, such “nation-building” projects are to be approved within two years.
The timing of the bill’s passage aligns with Carney’s pledge to dismantle internal trade barriers before Canada Day. However, the bill has faced significant criticism from Indigenous leaders and environmental organizations. They argue the government rushed the process and failed to provide sufficient time for consultation, especially regarding the impact on Indigenous rights and environmental protections.
While a few senators pushed for language recognizing Indigenous rights to be included, their proposals were not adopted. Carney has since pledged to hold forums with Indigenous leaders this summer to discuss the bill’s implementation and oversight.
Key sectors identified for development under the new legislation include Arctic ports, critical minerals, supply chain infrastructure, energy, and AI and telecommunications networks. Bill C-5 was introduced in the Senate just one day after passing through the House of Commons, where the major projects portion received support from both Liberals and Conservatives, while the internal trade section was approved by all parties except the Green Party’s Elizabeth May.
With Parliament now adjourned for the summer, further discussions and consultation on the bill’s implementation are expected to continue into the fall session.