Canada is facing a moment of economic uncertainty.
In the face of an escalating trade dispute with the United States and its persistent threats against Canada's sovereignty, Canadian governments at all levels are grappling with the appropriate response and counter measures needed to protect Canada's economic interests and independence. In British Columbia, Premier David Eby and his cabinet view legislative action as a necessary step.
On March 13, 2025, BC's NDP government tabled Bill 7, the Economic Stabilization (Tariff Response Act) (the Act). According to the BC Government, the Act will allow it to take fast action to defend the BC economy in response to the rapid and increasing threats Canada is facing from its southern neighbour. According to a press release from the BC Government:
If passed, the economic stabilization (tariff response) act will enable the B.C. government to be nimble in its response, giving government time to develop more long-term responses, as the threat of tariffs evolves rapidly and unpredictably. A focus on expanding interprovincial trade and moving procurement away from American vendors will help encourage greater reliance on goods and services made in Canada and increase opportunities for people and businesses in B.C.1
Traditionally, when laws are proposed and made in BC they go through a series of checks and balances. The provincial legislature acts as one of those checks and balances, where laws are created or amended by Members of the Legislative Assembly (MLAs).
As currently drafted, the Economic Stabilization (Tariff Response) is a draconian measure. The Act seeks to sideline the role of the legislature and allow the Premier and his cabinet to make sweeping laws relating to public policy, trade and the economy. If passed, the Act would allow Premier Eby and his government to effectively bypass the legislature and avoid existing oversight and accountability mechanisms. And, it does so all while shielding the government from any prospective legal proceedings relating to the same.2
Function of the Act
The Economic Stabilization (Tariff Response) Act sets out the sweeping powers (framed as Response Powers) given to the Lieutenant Governor in Council (which is effectively the Premier and their Cabinet). Ultimately, the government would be allowed to make any law it deems necessary (and without having to go through the legislature) so long as it is for any of the following purposes:
- Addressing challenges or anticipated challenges, to British Columbia arising from the actions of a foreign jurisdiction;
- Supporting interprovincial cooperation in reducing trade barriers within Canada; or
- Supporting the economy of British Columbia and Canada.3
Where the government identifies one of these purposes as supporting a decision to create a new law, regulation or directive, it would appear to be in compliance with this broad legislative scheme.
The Economic Stabilization (Tariff Response) Act gives sweeping powers to the government to issue "directives in relation to procurement of goods or services by the government or government procurement entities."4 This includes directives limiting purchases from the United States.5 Under the Act, the government can make regulations that either include or exclude corporations or organizations or classes of corporations or organizations, from the definition of a "government procurement entity."6
The powers given to the Premier and his cabinet under the Act apply to "any laws of British Columbia respecting who may sell, purchase or use a good...(or ) a service that may be supplied in another province of Canada."7 The powers apply "despite any enactment or regulatory measure that applies to the supply of a service."8 Simultaneously, accountability mechanisms are minimal. The Act provides that the government must "report" back to the Legislative Assembly about actions taken under the Act. However, there is no requirement that the actions be approved or supported and no requirement that the Legislative Assembly provide comment or advice relating to the actions.
Is hindsight 20/20?
The Economic Stabilization (Tariff Response) Act is reminiscent of the COVID-19 Related Measures Act (the CRMA) passed in British Columbia during the early days of the COVID-19 pandemic.9 The CRMA made amendments to British Columbia's Emergency Program Act (the EPA), providing a temporary legal framework for the government to enact COVID-19 orders and regulations while shielding persons from proceedings for civil liability related to the pandemic.10 At the time of its enactment, the CRMA was framed as necessary to provide the government with the tools it required to "continue to assist and protect British Columbians following the expiry of the state of emergency and to ensure that British Columbians [were] not faced with unintended practical and legal consequences."11 Under the CRMA, the government was authorized to make a regulation so long as they were satisfied that it was necessary to do so to respond to or alleviate the effects of the COVID-19 pandemic.12
With the gift of hindsight in the years following the COVID-19 pandemic, the CRMA and related measures have been criticized for lacking transparency and eroding public trust in the government. A report released by the BC Government in 2022 found that this erosion of trust might "translate into more resistance to restrictions necessitated by the next provincewide emergency."13 The report highlighted the need for the government to rebuild the trust that existed prior to the pandemic to support high levels of compliance if new restrictions should be required in the future. General conclusions were made regarding the need for the province to better communicate with the public and "develop and improve" plans in the face of future emergencies.14
The Economic Stabilization (Tariff Response) Act, in its current form, falls short of demonstrating the BC Government is considering the hindsight learnings from the CRMA.
Next steps and cautions
While the Act is not yet law, it is well on its way. The first reading of Bill 7 occurred on March 13, 2025.15 The second reading is scheduled for March 31, 2025.16 Committee debate will follow before the Bill goes to third reading, where it is voted on by the legislative assembly. If approved, which is expected given the NDP currently enjoy a majority, it will shortly thereafter become law.
Fear has too often been used by governments to justify undemocratic action. In the United States, President Trump has justified his behaviour in targeting minorities, deporting immigrants and threatening foreign nations as being necessary in times of "crisis" and "war". He too has resurrected draconian measures in an effort to justify broad, unchecked and sweeping powers to his office and those close to him. He has also used fear to justify a need for bypassing necessary democratic processes that ensure government action remains accountable to the rule of law, to due process and to the people who elected the government in the first place. British Columbia should be careful not to do the same.
Footnotes
1. Press Release, Attorney General, "New tools allow B.C. to rapidly respond to U.S. tariffs" (March 13, 2025).
2. Economic Stabilization (Tariff Response) Act, section 8, Protection Against Legal Proceedings.
3. Economic Stabilization (Tariff Response) Act, Part 4.
4. Ibid, Section 7.
5. Ibid, Section 10.
6. Ibid, Section 11.
7. Ibid, Section 2.
8. Ibid, Section 2(4).
9. COVID-19 Related Measures Act, SBC 2020, c. 8 (the "CRMA").
10. Ibid, Part 3, Section 5.
11. BC Ministry of Attorney General, "Information Bulletin: COVID-19 Related Measures Act" (July 10, 2020).
12. CRMA, Part 2, Section 9.
13. Government of British Columbia, "COVID-19 Lessons Learned Review: Final Report" (September 23, 2022), page 73.
14. Ibid at page 74.
15. Legislative Assembly of British Columbia, Progress of Bills, 1st Session 43rd Parliament. [ https://www.leg.bc.ca/parliamentary-business/overview/43rd-parliament/1st-session/bills/progress-of-bills]
16. Legislative Assembly of British Columbia, No. 25 Orders of the Day, 1st Session 43rd Parliament. [ https://www.leg.bc.ca/parliamentary-business/overview/43rd-parliament/1st-session/orders-of-the-day/o250331a.html]
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