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Ontario moving ahead with special economic zones in 2026 despite pushback

First Nations’ court challenges are also progressing
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Workers relax before the start of the day in the lunch room of the bunk house in Webequie, Ont., approximately 60 km northwest of the Ring of Fire mineral deposit in the James Bay lowlands of northern Ontario, Friday, Oct. 24, 2025.

EDITOR’S NOTE: This article originally appeared on The Trillium, a Village Media website devoted exclusively to covering provincial politics at Queen’s Park.

The legal framework for the Ford government’s special economic zones will be in place in the New Year, the province announced Wednesday.

In a press release, the Ford government touted its plan to “Protect Ontario” by designating economic development projects in special zones where provincial cabinet members can waive laws and regulations that apply elsewhere in Ontario. It announced that the regulatory framework for designating projects, proponents and zones will come into effect on Jan. 1.

“Special Economic Zones will bolster Ontario’s economic advantage by cutting red tape, accelerating approvals and protecting the jobs and industries that keep our province resilient and competitive,” said Economic Development Minister Vic Fedeli in the news release.

The plan was immediately controversial when it was introduced in legislation this spring. Environmental groups raised alarms, and Indigenous groups promised to fight back “on the ground” and in the courts.

Court actions

The special economic zone announcement comes as a 2023 legal action from several Treaty 9 First Nations, including Attawapiskat and Apitipi Anicinapek Nation, is scheduled for court hearings Thursday and Friday in Toronto.

Treaty 9 territories are where the Ford government is moving to fast-track the development of Ring of Fire mining projects.

The 2023 statement of claim for the $95 billion lawsuit accuses the Ontario and federal governments of breaching Treaty 9 “by granting rights and authorizing activities in and to” land in the area “without the plaintiffs’ consent, especially where such regulation threatens their way of life.”

It also calls for declarations that the nine First Nation plaintiffs hold “decision-making governance authority” on lands and natural resources in Treaty 9 territory and that their “way of life” can continue “without interference.”

The province has filed a motion — which is expected to be considered in court on Thursday — to dismiss the First Nations’ 2023 legal action.

Lawyers from the Attorney General of Ontario argue that Treaty 9 doesn’t impact Crown sovereignty over the affected lands and that jurisdictional claims made by the First Nation plaintiffs are not valid.

Without jurisdiction, the provincial lawyers argue, there’s no “reasonable cause of action” for the First Nation legal claim.

In media statements ahead of Thursday’s hearings, chiefs from the First Nation plaintiffs have accused the province of trying to reinforce colonialism by blocking their bid for shared decision-making authority on the lands.

“Ontario’s position is basically that colonialism is a done deal and that it cannot be undone; that we’re doomed to live in this state, which we consider a crime against humanity,” Apitipi Anicinapek Nation Chief June Black said.

Leaders from nine First Nations announced legal action in July to overturn Ontario’s Bill 5, which contained the Special Economic Zones Act, allowing their creation. That action was abandoned in October, but has since been “reconstituted with no amendments” and refiled, according to a representative from Woodward and Company Lawyers, who was representing the First Nation plaintiffs.

Regulations

The regulations announced by the provincial government on Wednesday provide few guardrails around the use of the zones. They state that the zones must comprise a single area of the province that is no larger than necessary to encompass the designated economic activity.

The minister can designate a “trusted proponent” for a project as long as the minister is satisfied that the person, corporation, agency or municipality has a good record of complying with legal requirements and is not a security risk.

The minister must also be of the opinion that the project will have significant long-term economic benefits for Ontario and benefit communities in Ontario, and is likely to succeed.

The minister must believe that exemptions and modifications of provincial laws and regulations would make it possible to complete the project faster, and make it more likely to succeed. 

Ring of Fire

The province has said it intends to designate a special economic zone for mining in the Ring of Fire, which it's been making other progress toward. 

The Canadian Press reported Wednesday that Ottawa and Ontario are planning to sign a deal on Thursday to eliminate duplicative work on the federal government’s impact assessments on large projects, including the Ring of Fire.

The deal will allow Ontario to take the lead in environmental assessments of "primarily provincially regulated” projects, The Trillium has reported.

It is part of the federal government’s new “one project, one review” process, which aims to reduce duplication in an effort to get shovels in the ground faster.

Premier Doug Ford said Wednesday that even with the federal government stepping aside, there’s still a need for special economic zones for the Ring of Fire and other projects, “because it moves things a lot, lot quicker.”

“And we have to cut out red tape and regulations,” Ford said. “Every government, no matter if it's municipal, federal or provincial, nothing gets in the way of progress more than red tape and regulations.”

Ford also said he believes the agreement signed on Thursday will be the last piece needed before getting started on road access to the Ring of Fire.

“But we're always in consultation with the leadership of the First Nations up north — Martin Falls, Webequie and Arrowland — we've signed great agreements, and they're really, really excited,” he added.

—With files from The Canadian Press and Katherine DeClerq



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