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MPs pass internal trade, major projects bill before House rises for summer

Click to play video: 'Major policy win for Carney as major projects bill passes in Canada’s House'
Major policy win for Carney as major projects bill passes in Canada’s House
WATCH: Prime Minister Mark Carney has his first major legislative victory. Bill C-5, also known as the Canadian economy act, gives the federal government sweeping powers to approve infrastructure projects – and is facing tough criticism. Mackenzie Gray explains – Jun 20, 2025

MPs voted in favour Friday of the Liberal government’s Bill C-5, known as the One Canadian Economy Act, sending the House of Commons into the summer break with a big policy win for Prime Minister Mark Carney.

The House held separate votes for the two parts of Bill C-5, one that focused on tackling internal trade barriers and a second that gives the government sweeping new powers to approve major projects.

The internal trade barriers portion passed nearly unanimously, with only Green Party Leader Elizabeth May voting against it. Conservatives helped Liberals take the more controversial major projects portion over the finish line, with all other opposition parties voting no.

After the second of two votes, Carney crossed the floor to shake hands with Opposition House leader Andrew Scheer and Conservative deputy leader Melissa Lantsman.

Carney told reporters after the vote the major projects powers in the bill are “enabling legislation” that needed to be passed quickly in order to begin the process of considering and approving “nation-building projects,” not the other way around.

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“For far too long, when the federal agencies have examined a new project, their immediate question has been why. Now they will instead ask themselves how,” he said.

Yet he also affirmed that consent and unity, including with Indigenous peoples, are essential for those projects to move forward.

“Nations are built positively, not negatively,” he said.

“If there are not groups coming together, if it’s not in the interests of the country … the projects don’t move forward.”

The House is now adjourned until Sept. 15.

The Senate is set to wrap up its examination of the bill by June 27. If it approves the legislation without further amendments, it will quickly be given royal assent and become law.

Click to play video: 'More pushback for Bill C-5 from Indigenous groups'
More pushback for Bill C-5 from Indigenous groups

The Liberals promised during the election campaign to pass a law to break down interprovincial trade barriers by Canada Day.

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Carney on Thursday called the legislation the “core” of Canada’s domestic economic response to U.S. tariffs.

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The legislation was amended early Thursday to withdraw the power it gave cabinet to sidestep the Indian Act after weeks of criticism from First Nations leaders and following a marathon committee hearing on Wednesday.

Assembly of First Nations National Chief Cindy Nepinak Woodhouse said Thursday the “limited changes” made to the bill don’t go far enough and called for further study.

After Friday’s votes, Carney, surrounded by Indigenous Services Minister Mandy Gull-Masty and other Liberal caucus members, said the new major projects office created through the legislation will have an Indigenous advisory council.

He added he will meet with First Nations, Inuit and Metis rights holders and leaders over the summer for “full-day summits” to discuss the legislation and create a “better shared understanding.”

“Consultation, cooperation, engagement, participation are at the heart of this bill,” he said. “That is how we build our nation.

“This is what unlocks the potential of our country in partnership. This is what makes us different from the United States. This is what will make us more independent from the United States. This is what’s going to move us forward.”

Gull-Masty, who noted she is the first Indigenous person to serve as Indigenous services minister, said Carney and the government recognize the importance of consultation with First Nations.

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“The prosperity of Indigenous communities is intertwined with the ability to ensure capacity building as part of investments and projects like those that are in the One Canadian Economy bill, and that it will be made possible,” she said.

“This is what Indigenous peoples want, and this is what Indigenous people most importantly deserve.”

Click to play video: 'Carney looking to pass legislation ‘before summer’ to remove trade barriers in Canada'
Carney looking to pass legislation ‘before summer’ to remove trade barriers in Canada

The Bloc Québécois had called for the bill to be split to allow MPs more time to study the measures that deal with major projects, but the government refused to do that. The interprovincial trade portion of the bill had broad support from all parties.

House Speaker Francis Scarpaleggia on Friday approved a New Democrat motion to hold separate votes on third reading, agreeing with NDP MP Jenny Kwan that the bill has two distinct parts without a clear common element.

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“Through Bill C-5, the Liberal and Conservative coalition joined hands to bypass environmental reviews, ignore provincial jurisdiction and trample on the constitutional rights of Indigenous peoples,” Kwan said in a statement.

“The NDP wants economic growth, but we will never vote in favour of violating constitutional rights and contributing to the climate emergency.”

Liberals had been criticized for rushing Bill C-5 through Parliament quickly in order to met its self-imposed deadline of July 1.

The government limited debate on the legislation in order to speed it through committee review.

Carney committed Friday that the fast-track process was unique to this bill and wouldn’t be repeated for other legislative priorities.

“This is a unique situation given the crisis,” he said.

“The overwhelming support this bill just received. And that was through hard work, because it’s also because it’s the right response to the circumstance.”

Yet he and Gull-Masty also acknowledged there were “lessons” to be learned on being more clear and direct about what they said were always the government’s intentions to ensure Indigenous consultation and collaboration, as well as balancing environmental concerns.

“Indigenous people are going to be sitting at the table being a part of the development process, and making sure that Canada strong is a strong future for everybody, including Indigenous people,” Gull-Masty said.

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— with files from the Canadian Press

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