Canada’s Bill C-5: Expert says federal policy bill brings hope in challenging economic times

Michael Dobner, National Leader of Economics & Policy Practice at PwC Canada, joins BNN Bloomberg to discuss the outlook for M&A activity in Canada.

An economic and policy analyst is hopeful proposed legislation from the federal government will aid companies amidst global uncertainty and a cooling domestic outlook.

Michael Dobner, national leader of economics and policy practice for PwC Canada predicts there could be a pickup in mergers and acquisition activity in 2026, particularly if Ottawa passes Bill C-5 aimed at faster project approvals.

“We are optimistic because we are hearing good signals from the federal government,” said Dobner. “Bill C-5 is suggesting that the government is very serious about moving projects much faster.”

A report from PwC Canada states Canadian companies announced 996 deals totaling $134 billion. However, the report notes a decline in inbound and locally sourced deals in Canada due to persistent uncertainty from U.S. President Donald Trumps tariffs. PwC’s baseline projection for Canadian GDP growth in 2025 remains below one per cent.

Bill C-5, the One Canadian Economy Act, establishes a statutory framework to remove federal barriers to the interprovincial trade of goods and services and to improve labour mobility within Canada. It aims to fast-track major projects deemed of national interest.

“We will see probably more investment starts to come in, especially if the signals from the government are continuing to show that it’s serious and it’s overcoming all the difficulties that it may face in trying to transform the Canadian government,” said Dobner.

The firms note the bill is part of a suite of policy priorities shaping Canada’s new vision. It states key priorities such as streamlined regulations, large-scale infrastructure projects, increased investment in defence and Arctic development, the removal of interprovincial trade barriers, fast-tracked integration of artificial intelligence and a changed immigration system to focus on attracting highly skilled individuals will address Canada’s productivity and competitiveness challenges.

“The government has an agenda for housing, especially modular housing,” said Dobner. “Let’s not forget the defence sector, which is going to benefit from a big boost. So those are areas that we are seeing definitely a potential for further investments in 2026.”

The report notes that if early policy actions are interpreted by market players as genuine, practical and decisive, PwC Canada suggests that meaningful improvements in Canada’s economic outlook could begin as early as 2026. Dobner expects increased investment in mining, infrastructure, housing, and defence.

“We have seen critical minerals, which we think is a big catalyst for the Canadian economy, being a key central point in the G7 discussion, as well as the discussion or negotiation between the U.S. and Canada,” said Dobner. “On the basis of the government showing seriousness and giving good signals, and the fact that our allies are coalescing around critical minerals, defence and AI, we are more optimistic about what would happen in 2026.”

He acknowledged concerns that projects will be rushed. The Chiefs of Ontario are concerned it would undermine Indigenous rights and environmental protections.

“We are in an economic emergency,” said Dobner. “I’m not putting out a political view, but from an economic standpoint, it may make sense.”

While the report highlights good reason for cautious optimism, it notes that the global environment remains unpredictable with potential global crises, a financial crisis from a weakening U.S. dollar, or disruption of entire sectors by emerging technologies.