Carney aims to have 'free trade by Canada Day' between provinces and territories
Ontario premier says hiking energy tax on U.S. still on the table
What you need to know:
- Canada to develop national trade strategy, PM says.
- Carney says he'll keep carbon emissions cap.
- Ottawa to set up 'one project, one review' system to speed approval of major projects.
- Government will temporarily remove one-week waiting period for employment insurance.
Prime Minister Mark Carney says he and Canada's premiers have agreed to develop a national trade strategy and promised a slew of support for workers and businesses.
"We intend from a federal level to have free trade by Canada Day," he said, noting that the plan would be directed at easing transportation, energy, critical minerals and digital connectivity restrictions across the country.
The announcement comes after his meeting with premiers at the Canadian War Museum in Ottawa on Friday, with some calling for trade barriers within the country to be swiftly removed in order to make Canada's economy more resilient.
"The agreement is to turn what has been a concept into a reality that will diversify and strengthen our economy… We are committing to removing all federal exemptions under the Canada free-trade agreement," Carney said.
The gathering between Carney and the provincial and territorial leaders ran about 40 minutes longer than expected — and comes two days before a federal election is likely to be called.
U.S. President Donald Trump's trade war escalated last week as the country imposed 25 per cent tariffs on all steel and aluminum imports entering the country, prompting Canada to effectively double its retaliatory tariffs on U.S. goods.
Trump has also repeatedly suggested that Canada should become the 51st state.
"We have to do things that we hadn't imagined possible before at a speed that we haven't moved before," Carney said in his remarks before the meeting. "One aspect of that is we need builders and it's part of the reason why earlier today we've brought back the level of the capital gains so that those who take those risks get the rewards."
New measures announced:
- Temporarily waiving the one-week employment insurance waiting period.
- Temporarily allowing businesses to defer corporate income-tax payments and GST and HST remittances.
- Deploying a new financing facility (the Large Enterprise Economic and National Security Facility).
- Implementing a "one window" approval process to speed up major projects.
- Doubling the Indigenous Loan Guarantee to $10 billion, unlocking access to capital for First Nations, Inuit and Métis.
- Providing more funding for regional development agencies.
- Removing any mobility restrictions for federally regulated professions.
Carney said removing barriers to the free movement of workers, goods and services would increase the size of Canada's economy by $250 billion — equivalent to more than $6,000 for every Canadian.
He said he is proud the federal government moved on a number of projects today, such as the Cedar LNG and LNG Canada in B.C. and Port of Churchill in northern Manitoba.
"It's high time to build," Carney said.
'Focused on action'
Carney told reporters he would maintain a carbon emissions cap, but that legislation isn't enough to reduce emissions, which is why, he said, he is "focused on action."
"One of the projects, I firmly believe this, of national significance is major investments in carbon capture and storage," he said.
"We have the opportunity not just to get emissions down but very importantly to create an entirely new industry that will serve Canadians well but will create exports and jobs and opportunities for many decades."
The Conservative Party later alleged Carney was lying about his support of Canada's oil and gas industry.
"If Carney was sincere, he would immediately commit to the full repeal of the Liberals' C-69, the 'No More Pipelines' Act, C-48, the West Coast Tanker Ban, and the production cap," the party said in a statement. "Instead he doubled down on capping Canadian energy production."
Carney's announcement about a national development strategy is also reminiscent of Conservative campaign promises.
Just yesterday, Conservative Leader Pierre Poilievre said in Jonquière, Que., that he plans to create "shovel-ready zones" with pre-approved construction permits for major resource or energy projects if elected.
In 2019, Conservative Andrew Scheer, leader of the Official Opposition at the time, pledged that if elected, his government would build a single coast-to-coast energy corridor to transport natural resources.
Most premiers in agreement: Ford
In a scrum with reporters following the meeting, Ontario Premier Doug Ford said most premiers agreed about eliminating trade barriers, with he and the federal government intending to clear all exemptions.
"Nova Scotia is clearing all exemptions. As we move across the country, eventually everyone is going to hop on," he said. "They'll have no choice but to hop on board. Not forced, but there will be so much pressure within their territory or their province."
Ford repeated that all options remain on the table, including potentially increasing an energy tax on the U.S. despite Alberta Premier Danielle Smith's opposition to that approach.
"Ontario will decide that. No other jurisdiction," he said. "I don't worry about her oil and she doesn't have to worry about my energy."
Smith and Saskatchewan's Scott Moe and B.C.'s David Eby attended virtually, as did Newfoundland and Labrador Premier Andrew Furey who is in Japan for a trade mission.
Ford reiterated that he would work with anyone as long as it's in Ontario's best interest.
New Brunswick Premier Susan Holt voiced support for Carney, saying in French that she is "very happy" to have him as prime minister while Canada is under tariff threats.
"From what I've seen of Mr. Carney and the conversations we have had, his passion for Canada shines through, his intelligence shines through," she said.
She said she has yet to meet with Poilievre and doesn't have a comparison point.
Legault wants 'global negotiation'
Shortly after arriving for the meeting, Quebec Premier François Legault told reporters that he wants the next prime minister to ask Trump for a "global" negotiation of a trade agreement rather than one that is piecemeal.
"Right now, Mr. Trump doesn't respect the agreement between Canada, the U.S. and Mexico, especially on steel and aluminum. So it's important we renegotiate all the agreement," he said.
He said premiers and the prime minister need to be careful about counter-tariffs and "eventual" counter-tariffs to maximize the negative impact on U.S. businesses but minimize the impact on Canadian ones.
The Quebec premier said his province would be "open" to pipeline projects, due to Trump's threats, but there needs to be social acceptability.
Yukon Premier Ranj Pillai acknowledged that, with increased focus on the North and the Arctic, it's important to hear the plans of all political parties for the region, especially in light of the rhetoric south of the border.
Pillai said he wants to make sure the prime minister is aware that it is a "special moment in time for us" and that his visit to Iqaluit, the first domestic trip of his leadership of Canada, was "important and set a tone."
"Other people are focusing on the North and we sure need to do the same," Pillai said. "In the first week, personally, I'm very impressed with what I've seen."
Nunavut Premier P.J. Akeeagok agreed, saying it was great to see Carney underline "how important the North is and how much incredible of an opportunity we have to provide the country with an opportunity to diversify."
Manitoba Premier Wab Kinew emphasized the need for a "solid plan for Canada's economy" because the country is "fighting a trade war on two fronts."
"Trump tariffs certainly attract so much attention, but in Manitoba and in Western Canada, the tariffs from the People's Republic of China on canola and pork are having a major impact already," Kinew said.
With files from CBC's Olivia Stefanovich, Lisa Mayor, Meagan Fitzpatrick, Kate McKenna, Raffy Boudjikanian