New Ottawa legislation aims to remove labour mobility, internal trade barriers

Tabled bill will introduce framework to recognise provincial and territorial licences and certifications for workers

New Ottawa legislation aims to remove labour mobility, internal trade barriers

Aiming to build a stronger, more competitive, and more resilient Canadian economy, the federal government has introduced legislation to eliminate barriers to labour mobility and internal trade.

The legislation—titled One Canadian Economy: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act—will provide a framework to recognise provincial and territorial licences and certifications for workers. According to the government, this means that a worker authorised in a provincial or territorial jurisdiction can more quickly and easily work in the same occupation under federal jurisdiction.

“Through this legislation, we are giving ourselves the means to lift obstacles to economic growth and productivity, realise nation-building projects, create jobs and allow businesses to expand,” says Dominic LeBlanc, president of the King's Privy Council for Canada and minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, and One Canadian Economy. “Together with provinces and territories and Indigenous communities, we will make Canada the strongest economy in the G7.”

High housing costs are making it increasingly difficult for Canadian workers to relocate for better job opportunities, thereby limiting talent mobility and slowing national productivity growth, according to a report.

Under the new legislation, in cases where there is a federal barrier, a good or service that meets comparable provincial or territorial rules will be considered to have met federal requirements for internal trade. The government notes that this change will make it easier for Canadian businesses to buy, sell, and transport goods and services across the country.

Canadian businesses are increasingly pessimistic as the ongoing trade war initiated by U.S. President Donald Trump continues to impact the economy, according to a previous report.

Ottawa’s legislation also outlines that projects deemed to be of “nation-building” significance will be conditionally approved at the outset. These projects will still undergo environmental and regulatory reviews, but the federal government intends to shift the focus from deciding “whether” to proceed to determining “how” the project should move forward.

An Indigenous Advisory Council, comprising First Nations, Inuit, and Métis representatives, will be included in the newly created federal major projects office, which will serve as a central coordinating body. The office will also be responsible for consulting with Indigenous Peoples and supporting mitigation measures to protect rights and the environment.

The federal government will assess project eligibility based on factors such as economic benefit, climate change alignment, Indigenous interests, and likelihood of successful execution. Examples include transportation infrastructure, energy initiatives, and critical mineral developments.

Rigorous testing to improve labour mobility

Meanwhile, federal Conservative Leader Pierre Poilievre has expressed scepticism over Ottawa’s proposal.

Regarding labour mobility, he argues that internationally trained doctors should be allowed to practise in Canada if they pass a rigorous test and meet national standards.

“That is one way to knock down barriers between provinces,” he says, according to The Globe and Mail.

Poilievre also called on the federal government to remove laws that block projects in general, rather than making case-by-case exemptions.

“If you have a wall that’s blocking everybody from getting where they need to go, why would you say that only a certain group of people are allowed to go around it and the rest must stand there facing that wall?” he says.

“While the government made minor baby steps, what we needed was a big breakthrough on interprovincial trade. And we will keep fighting for that.”

Recently, Ontario also introduced its Working for Workers Seven Act, 2025 to enhance labour mobility.

Latest stories