Canada Minute: Issue 62

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

📅 This Week In Canada: 📅

• Prime Minister Mark Carney expressed cautious support for recent US and Israeli strikes on Iran, acknowledging them as an extreme symptom of a fracturing international order. Speaking at the Lowy Institute in Australia, Carney said Canada was not informed or consulted before the airstrikes and noted that their legality under international law remains a matter for others to judge. While condemning Iran’s nuclear ambitions and threats to global security, he emphasized Canada’s regret over the conflict, describing it as another example of the failure of the international system. 
  
  
• Canada-US trade talks have resumed face-to-face for the first time since President Donald Trump cancelled negotiations last October, raising stakes for Canada’s $1.3-trillion annual trade with the US. Trade Minister Dominic LeBlanc met with US Trade Representative Jamieson Greer in Washington, with discussions described as “constructive and substantive.” Key issues include tariffs on Canadian steel, aluminum, autos, softwood lumber, and other products, alongside potential changes to the Canada-US-Mexico Agreement (CUSMA), including US demands for greater dairy access and modifications to Canadian content rules for streaming services. US threats of new or higher tariffs, splitting CUSMA, or terminating the agreement continue to loom, but the resumption of talks is a positive step. 
  
  
• Canada and the European Union are set to sign updates to their bilateral trade agreement, the Comprehensive Economic and Trade Agreement (CETA), aimed at modernizing provisions and expanding economic opportunities. The agreement enhancements include adding a digital trade chapter, mutual recognition for architects to access Europe’s $1.1-trillion construction market, streamlined pharmaceutical manufacturing protocols, and strengthened investment protections for small and medium-sized businesses. Officials will also approve supplemental rules for resolving investment disputes, addressing past concerns over CETA’s investor court system. While these improvements are being implemented, the full investment chapter will only take effect once all EU member states complete ratification - a process still pending in ten countries.
  
  
• Eight provinces and two territories have signed a memorandum of understanding to develop cross-country electricity transmission infrastructure, aiming to better connect Canada’s fragmented grid and enhance energy independence. Ontario Minister of Energy and Mines, Stephen Lecce, noted that Canada currently has “13 islands” of grids, which primarily flow north-south into the US rather than between provinces. The agreement, which includes Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Yukon, Prince Edward Island, Nova Scotia, and the Northwest Territories, seeks to expand electricity trade within Canada before exporting power abroad. Participants emphasized the importance of energy security, particularly in northern regions like Yukon, where extreme cold has forced industrial customers to disconnect from the grid. The provinces also plan to seek federal financial support to build transmission corridors and advocate for a national pan-Canadian grid strategy connecting east-west and north-south. Quebec has not signed, noting that resources are within provincial jurisdiction.
  
  
• Alcohol sales in Canada fell for the fourth consecutive year in 2024-25, marking the largest annual decline since Statistics Canada began tracking in 2004-05. Total volume dropped 3% to 2,898 million litres, while the value of alcohol sold fell 1.6% to $25.8 billion, despite a 1.6% price increase. Beer remained the top-selling category but saw a 3.8% decline in volume, while wine sales dropped 2.2%, driven by a 3.9% fall in imported wine - the first such decrease since tracking began. Spirits sales also fell 3.2% in value and 4.4% by volume, with whisky, vodka, and liqueurs leading the category. Ciders and coolers were the only beverage category to grow, with sales rising 4.8% to $2.4 billion. Meanwhile, recreational cannabis sales increased 11.5% to $2.5 billion.
  
  

🚨 This Week’s Action Item: 🚨