Spoiler alert: We're not getting free trade in Canada by Canada Day

While this legislation is a step in the right direction, it fails to capitalize on the momentum that has been built in response to the Trump tariffs.

“Free trade in Canada by Canada Day.”

This was what Mark Carney promised Canadians throughout the election. And now, we finally have his plan in front of us. Last week, the Liberal Government tabled Bill C-5 “an Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act,” also known as the One Canadian Economy Act.

While the campaign promise and the title of the act promise sweeping change, the bill they introduced is at best a baby step.

Let’s break it down.

The Bill has two parts, Part 1, Free Trade and Labour Mobility in Canada Act (FTLMCA) and Part 2, Building Canada Act. The bill is very small in word count and significance. This article will focus on the FTLMCA. FTLMCA has three main components.

The first component legislates federal recognition of provincially certified products. For example, energy standards that are determined by provinces for washing machines will now be accepted by federal regulators. But in a briefing, government officials weren't able to give a comprehensive or even any list of products that would be affected by the federal government’s recognition of provincial standards. In all likelihood, the impact of this change will be extremely modest as most product regulation is done at the provincial level.

The second component of the Bill will legislate federal recognition of provincial accreditation. The example given by federal officials was that of a land surveyor who was accredited by a province and would be applying to work on a federal government project. The federal government would be obliged by FTLMCA to accept the surveyor’s provincial accreditation. As most occupations are regulated at the provincial level, federal acceptance of provincial accreditation will have an extremely limited impact and will simply affect areas such as federal procurement or working directly for the federal government. Most problems with respect to labour mobility and accreditation relate back to provincial governments not recognizing accreditation received in other provinces. In the absence of provinces agreeing to mutually recognize professional accreditation, very little progress can be made.

The final element of FTLMCA gives the minister the ability to create regulations to enact the above two objectives. FTLMCA will allow for federal recognition of provincial product standards and labour accreditation. However, because the federal government’s role in both of these areas is quite limited, the impact of these changes will be marginal.

This legislation simply does not meet the moment. Our economy was facing a productivity and growth crisis long before the implementation of tariffs by President Trump. The additional pressure exerted on our economy by the tensions with our largest trading partner have taken our tough economic situation from bad to worse.

To the credit of all Canadians (including our premiers), we have responded to external threats with unprecedented levels of collaboration and teamwork. Canadians want to meet the moment. My concern is that Mark Carney does not. For example, he could have put forward a plan to eliminate all federal barriers to interprovincial trade, or even better worked with the premiers to eliminate all interprovincial trade barriers both federal and provincial as quickly as possible. Instead, he has held meetings, given press conferences, and tabled half hearted free trade legislation.

I am not naïve and understand that knocking down interprovincial trade barriers is hard, even when everyone is on board. But when dealing with the “crisis of our lifetimes” you would think the Prime Minister would act with boldness and courage. Why not repeal Bill C-69 to allow for the construction of national projects from coast to coast? Why not get rid of the federal industrial carbon tax to remove burdens from industries, thus relieving multiprovincial corporations from having to comply with a complicated patchwork of industrial carbon taxes across this country?

While this legislation is certainly a step in the right direction, it fails to capitalize on the momentum that has been built in response to the Trump tariffs by premiers and all Canadians.

This legislation is a smallest of baby steps when the Canadian economy desperately needed a major breakthrough.