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"The law amends the Canadian Human Rights Act by adding "gender identity or expression" as a prohibited ground of discrimination." That doesn't have any effect on free speech except by extension and at that it would clearly be open to interpretation that is outside the hands of the Prime Minister and squarely upon the shoulders of the courts.
There is more to it though, in terms of what the concern is
This is from Canada's humans right commissioner (The C-16 thought crime stuff is enforced through that tribunal)
"Refusing to address a trans person by their chosen name and a personal pronoun that matches their gender identity, or purposely misgendering, is discrimination when it takes place in a social area covered by the Code (employment, housing, and services like education)"
http://torontosun.com/2016/11/13/hu...-hir/wcm/0254ab55-ade7-40f4-b1f3-553b75b10842
So they are saying here that 'misgendering someone' (not calling them 'xer' or whatever they want) can be considered a crime under C16
So, understandably it is not apparently obvious as to where this could go just reading a blurb summary of the bill, but it gets a little weird when looking deeper into it,