Canada Approves New Bill C-5: A Practical Guide

Table of Contents

1. What Is Bill C-5?

2. Bill C-5: Key Dates and Status

3. Bill C-5: Free Trade and Labor Mobility

4. Bill C-5: Building Canada Act Explained

5. Why Bill C-5 Matters for Immigrants and Businesses

6. Step-by-Step: How Bill C-5 Affects Your Application

7. Pros and Cons of Bill C-5

8. Next Steps and Where to Find Updates

What Is Bill C-5?

Bill C-5, officially titled the One Canadian Economy Act, is a transformative federal law passed by the House of Commons on June 20, 2025. It is made up of two major legislative components:

1. The Free Trade and Labor Mobility in Canada Act, and

2. The Building Canada Act.

Together, these acts aim to break down economic barriers between provinces and territories, promote labor flexibility, and accelerate the construction of large-scale infrastructure projects deemed essential to Canada’s long-term prosperity.

For decades, Canada has struggled with fragmented provincial regulations that make it harder to move goods, offer services, or work across provincial borders. These internal trade barriers cost the country billions of dollars annually and reduce national productivity. Bill C-5 directly addresses these inefficiencies by requiring mutual recognition of standards and certifications across provinces. That means if a product or service is approved in one province, it must be accepted in others. Likewise, if a skilled worker holds a license in one province, that credential can be used to work in another—without repeating licensing exams or training.

The second component, the Building Canada Act, gives the federal government authority to fast-track high-impact infrastructure projects. Once a project is designated as being of “national interest,” it gains access to a streamlined regulatory process, including faster environmental reviews and one centralized conditions document instead of multiple approvals. A new Federal Major Projects Office will manage these applications and consultations, including with Indigenous communities.

It’s a major shift toward building a more connected, competitive, and inclusive Canadian economy.

Bill C-5: Key Dates and Status

• First Reading: June 6, 2025, tabled by Minister Dominic LeBlanc.

• Second Reading: Passed June 18, 2025, with majority support.

• Third Reading: Passed June 20, 2025, in the House of Commons.

• Senate Review: Scheduled June 16–18, 2025.

• Coming into Force: By Order in Council once Senate approves.

Free Trade and Labor Mobility

1. Removing Trade Barriers

• Mutual Recognition: Goods or services meeting one province’s rules count as meeting federal standards.

• CFTA Exceptions Reduced: 70% of federal exceptions under the Canadian Free Trade Agreement will vanish by July 2025.

• Trucking Harmonization: Builds on 2024 rules to ease cross-country freight.

2. Simplifying Worker Mobility

• Credential Recognition: Nurses, engineers, and tradespeople licensed in one province can work in any other with minimal red tape.

• One Application Process: Federal recognition through a single online portal.

• Faster Approvals: Target is 30-day processing instead of months.

Building Canada Act Explained

1. National Interest Projects

The Building Canada Act lets the Governor in Council designate projects—highways, ports, pipelines, renewable energy—as “national interest,” cutting approval timelines from five years to two.

2. Two-Key Approval Process

1. Designation: Minister’s directive names the project.

2. Single Conditions Document: Replaces multiple regulatory approvals under one set of terms.

3. Federal Major Projects Office

• Single Point of Contact: Coordinates all federal permits, environmental assessments, and Indigenous consultations.

• Indigenous Advisory Council: Ensures rights under Section 35 of the Constitution Act, 1982, and UNDRIP are respected.

Why the Bill Matters for Immigrants and Businesses

Bill C-5 has far-reaching implications for immigrants, skilled workers, and businesses operating across Canada. By removing interprovincial trade and labor mobility barriers, the law creates a more accessible and efficient economic landscape for newcomers and companies alike. Here’s how:

1. Faster Licensing and Credential Recognition

One of the biggest hurdles for immigrants in Canada is the complex and inconsistent process of getting their foreign credentials recognized. Under Bill C-5, professional licenses and certifications granted in one province will now be recognized across others through a mutual recognition system. This significantly reduces processing times and eliminates the need to reapply or retake exams when moving between provinces. For example, a nurse licensed in Ontario will be able to work in Alberta or British Columbia without undergoing redundant assessments. This change benefits not only immigrants, but also employers facing critical labor shortages in healthcare, construction, and engineering.

2. Expanded Employment Opportunities

With provincial borders no longer acting as barriers to employment, immigrants will have greater flexibility to seek work anywhere in the country. Whether you’re a plumber in Nova Scotia or a truck driver in Manitoba, you can now pursue job opportunities across Canada without facing new licensing requirements. This flexibility allows for better job matches and reduces unemployment or underemployment among newcomers.

3. Stronger, More Reliable Infrastructure

The fast-tracking of infrastructure projects means more dependable roads, public transit, power grids, and housing developments. For immigrants, this leads to better living conditions, easier access to services, and more efficient transportation. It also helps businesses operate smoothly by reducing logistical delays and energy costs.

4. Economic Growth and Investment

A unified Canadian economy—free of redundant provincial regulations—creates a more attractive environment for foreign direct investment (FDI). This boosts demand for skilled labor in industries such as renewable energy, technology, and manufacturing. Immigrants with technical expertise or trades experience will benefit from a growing job market driven by large-scale national development projects.

Step-by-Step: How Bill C-5 Affects Your Application

1. Credential Assessment

   • Upload your foreign diploma to the federal portal.

   • Receive a “recognized” status if standards match.

2. Provincial Notification

   • Federal office sends approval to your target province automatically.

3. Work Permit Update

   • Apply for a work permit noting “Bill C-5 mutual recognition” to speed processing.

4. Job Start

   • Begin work as soon as you hold a valid provincial license status.

Pros and Cons of the Bill

Next Steps and Where to Find Updates