Shortly into its new term, the Provincial Government of Ontario (the "Province") has proposed additional and controversial new legislation seeking to "protect" Ontario, and which will directly impact Ontario's construction and development industry. On April 16th and April 17th, 2025, the Province introduced Bill 2: Protect Ontario Through Free Trade Within Canada Act, 2025 ("Bill 2"). Following Bill 2, the Province has also introduced Bill 5: Protect Ontario by Unleashing Our Economy Act, 2025 ("Bill 5") (see our summary of Bill 5 here), followed most recently by Bill 17: Protect Ontario by Building Faster and Smarter Act ("Bill 17") (see our summary of Bill 17 here).
Most of the changes proposed under this legislation will come into force and effect upon the bill receiving Royal Assent. As of the date of this bulletin, Bill 2 remains in second reading, and has been referred to a Standing Committee for further consideration.
The first bill in this "Protect" trilogy, Bill 2 seeks to improve labour mobility across Canada by enacting the new Ontario Free Trade and Mobility Act, 2025, and by amending the Ontario Labour Mobility Act, 2009 and the Fair Access to Regulated Professions and Compulsory Trades Act, 2006. It also seeks to improve trade within Canada by amending the Liquor Control Board of Ontario Act, 2019 and the Liquor Licence and Control Act, 2019, and by enacting the Buy Ontario, Buy Canadian Day Act, 2025 (proclaiming the last Friday of June each year as "Buy Ontario, Buy Canadian Day").
Under the proposed Ontario Free Trade and Mobility Act, 2025, the Lieutenant Governor in Council will have the authority to designate another Canadian jurisdiction as a "reciprocating jurisdiction" under specific conditions. These mutual recognition provisions state that, when certain criteria are met: (i) goods from a reciprocating jurisdiction will be treated as though they comply with Ontario's equivalent standards and approvals, and (ii) individuals or entities authorized to provide a service in a reciprocating jurisdiction will be entitled to receive the corresponding authorization in Ontario.1
This means that, once this proposed legislation is enacted, certified workers from other provinces and territories can begin working immediately in Ontario while they complete a streamlined registration process. Goods and services certified in other parts of Canada will also be recognized as adequate for sale and use in Ontario.2
The proposed amendments to the Ontario Labour Mobility Act, 2009, correspond with and address the enactment of the Ontario Free Trade and Mobility Act, 2025. These amendments are aimed at reducing red-tape and limiting conditions authorities can impose for certification to work in Ontario.3 They also propose to allow individuals certified by an out-of-province authority to be deemed certified to work in a regulated occupation in Ontario, under certain conditions, for a one-time period of six months.4
Bill 2 has the potential to have a significant impact on developers, owners, contractors and consultants by (i) increasing the availability of and creating a more seamless process for goods, services, and (ii) permitting labour to move freely between Ontario and other provinces or territories in Canada. Construction and development companies in Ontario will be able to hire skilled workers from across Canada and source "compliant goods" from other Canadian jurisdictions, which may reduce any project delays related to labour and product or material shortages – especially key in a trade war.
Conclusion
McMillan will continue to monitor the status of Bill 2, Bill 5 and Bill 17.
Footnotes
1. Bill 2, Schedule 5, Section 4.
2. Ontario Unlocking Free Trade Within Canada | Ontario Newsroom
3. Bill 2, Schedule 6, Section 1(1).
4. Bill 2, Schedule 6, Section 3.
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2025
