Canada Minute: Issue 36

Canada Minute - Your weekly one-minute summary of Canadian politics.

📅 This Week In Canada: 📅

• The federal government has drafted a list of 32 potential infrastructure projects that could qualify for fast-track approvals under the Building Canada Act, including a proposed Northwest Coast Oil Pipeline to bring Alberta crude through northern BC to the Pacific. The list also includes port expansions, energy projects such as LNG Phase 2 and transmission lines, nuclear and hydroelectric initiatives, mining developments, and transportation upgrades like highways and rail projects. Inclusion on the list does not guarantee funding but signals federal interest in projects deemed in the national interest. Other notable projects include offshore wind and oil developments, small modular nuclear reactors in Ontario, and Arctic trade corridor upgrades linked to the Port of Churchill.
  
  
• Prime Minister Mark Carney has announced a pause on Canada’s zero-emission vehicle (ZEV) mandate. A review of the policy will last 60 days and is part of a broader assessment of the government’s climate measures, prompted by the auto industry’s struggles with US tariffs and falling sales. Carney stressed that the government recognizes the pressures on manufacturers and wants to remove immediate burdens while determining the future of the mandate. The ZEV policy, introduced under former Prime Minister Justin Trudeau, set targets beginning at 20% of light-duty vehicle sales in 2026 and increasing to 100% by 2035. Automakers and industry associations welcomed the delay, arguing that the mandate imposed unsustainable costs, threatened Canadian jobs, and risked deterring investment. Critics warned the pause undermines climate action, delays the transition to electric vehicles, and creates uncertainty for both consumers and industry. The government is also exploring ways to make EVs more affordable, with discussions about reinstating consumer rebates of up to $5,000 for electric cars and $2,500 for plug-in hybrids.
  
  
• Carney also unveiled a broad economic strategy aimed at helping Canada withstand trade disruptions caused by US tariffs, with measures targeting both workers and businesses. Up to 50,000 workers will gain access to reskilling programs, employment services, and extended employment insurance benefits to support job transitions. Businesses will benefit from a new $5-billion strategic response fund to develop products, retool plants, and expand into new markets, alongside an expanded Regional Tariff Response Initiative that increases support for small- and medium-sized enterprises from $450 million to $1 billion. The government is also introducing a “Buy Canada” policy, requiring public procurement to prioritize Canadian suppliers to strengthen domestic industry. Additional measures target the agricultural and seafood sectors, including $370 million in biofuel incentives and support for marketing, trade diversification, and value chain restructuring. Carney emphasized these initiatives as immediate steps to build economic resilience, while critics like Conservative Leader Pierre Poilievre dismissed the strategy as largely symbolic and ineffective.
  
  
• Conservative Leader Pierre Poilievre is calling for the permanent end of Canada’s temporary foreign worker (TFW) program, arguing it suppresses wages and limits opportunities for Canadian workers, particularly youth. His proposal would immediately stop issuing new TFW permits, phase out the program over a maximum of five years in low-unemployment regions, and create a separate program for hard-to-fill agricultural jobs. Under the plan, employers would face caps on low-wage foreign workers and shorter maximum employment durations. Poilievre cited declining youth employment as a key reason for the proposal, while Canada’s immigration plan aims to gradually reduce temporary foreign workers to under five per cent of the population by 2026. Prime Minister Mark Carney defended the TFW program, saying it remains necessary for filling labour shortages and is being adjusted to function effectively. Migrant rights groups criticized Poilievre’s stance, calling it xenophobic and misleading, while Immigration, Refugees and Citizenship Canada noted the program is meant to respond to labour market gaps. 
  
  
• Canada’s economy lost 66,000 jobs in August, pushing the unemployment rate up to 7.1% - the highest non-pandemic level since 2016. Most of the losses were in part-time positions, affecting workers aged 25 to 54, while youth employment remained largely unchanged. Sectors exposed to tariffs, including transportation, warehousing, manufacturing, and scientific and technical services, were hit hardest, whereas construction added 17,000 jobs. The participation rate fell to 65.1%, also a pandemic-era low. Economic uncertainty from US trade policy and minimal business investment contributed to the job losses. Analysts say the report could prompt the Bank of Canada to consider interest rate cuts. Youth continue to face particularly high unemployment, compounded by factors such as the rise of gig work, population growth, and increased competition from foreign workers and international students. 

🚨 This Week’s Action Item: 🚨