Canada's New Law Accelerates Major Projects Amid Trade Tensions with the US

Canada has passed a significant law enabling swift approvals for national projects, stirring debate and concern over Indigenous rights and environmental impact.

Canada's parliament passed a pivotal bill on Thursday, empowering Prime Minister Mark Carney's government to expedite major infrastructure projects aimed at invigorating the national economy. The One Canadian Economy Act will streamline the approval process and allow the cabinet to bypass certain federal regulations. Supporters assert that this legislation is vital for reducing Canada's reliance on the United States, particularly in light of ongoing trade disputes exacerbated by President Donald Trump's tariff policies.

However, the act has faced backlash from Indigenous leaders and environmental advocates, who argue that hastening project approvals could silence dissent, particularly from marginalized communities. While the legislation does not specify which projects will be prioritized, Carney has indicated it could facilitate the development of energy corridors such as pipelines and electricity grids, as well as expand mining operations and enhance port capacities.

Carney asserts that the act will "remove trade barriers, expedite nation-building projects, and unleash economic growth," with a commitment to involve Indigenous partnerships at its core. Proponents believe the legislation will improve internal trade conditions and labor mobility, granting the government significant authority to approve projects that serve the national interest. This has raised alarms among Indigenous leaders, who worry that insufficient consultation will occur before project implementation, potentially undermining their rights.

The passage of this law marks a notable achievement for Carney, fulfilling his electoral promise to dismantle interprovincial trade barriers by Canada Day on July 1st. This move comes as a response to Trump's imposition of tariffs on Canadian steel, aluminum, and automotive sectors, prompting a robust campaign from Carney aimed at fortifying the domestic economy against external pressures.

Nova Scotia senator Paul Prosper, representing the Mi'kmaq Indigenous community, attempted to introduce an amendment requiring Indigenous consent before project approval. He criticized the rapid approval process, suggesting that a more gradual approach could have included necessary consultations with Indigenous rights holders. Prosper emphasized the need for sustainable development that respects Indigenous communities, saying, "We do not want success and progress to come on the backs of Indigenous Peoples." In contrast, Senator Hassan Yussuff, a supporter of the legislation, called it a necessary response to an "urgent and immediate crisis."

The one Canadian economy act states that Indigenous consultation will occur prior to fast-tracking any projects, aiming to strike a balance between economic growth and respect for rights and voices of Indigenous peoples.