King Charles II
I said Canada’s mission is to build the “
strongest economy in the G7
” as he laid out the federal government’s agenda in the
first speech by a Canadian monarch
to open Parliament since Queen Elizabeth II in 1957.
Amidst a trade war with the United States and various headwinds facing Canada’s economy, here are the top three economic priorities for the Liberal government in Canada’s 45th Parliament.
Middle-class tax cut
The first order of business for the federal government will be introducing legislation to pass a
middle-class tax cut
since Prime Minister
Mark Carney
faces pressure to tackle the affordability issues facing many Canadians.
“The government is guided by its conviction that the economy is only truly strong when it serves everyone,” King Charles said in the Senate chamber. “Many Canadians are struggling to get ahead. The government is responding, reducing middle-class taxes and saving two-income families up to $840 a year.”
The tax cut will cut
the marginal tax rate on the lowest income tax bracket by one percentage point and will impact 22 million Canadians. The measure promises to deliver $27 billion in tax savings for Canadians over the next five years.
As for how this plays into Canada’s fiscal position, Canadians will have to wait. Carney has faced criticism by economists that his government does not plan to present a spring budget, instead opting to provide an update of Canada’s finances during the fall session.
One Canadian Economy
Carney has promised “the biggest transformation” of the Canadian economy since the Second World War, a promise that was reiterated in the throne speech.
One way the Liberal government plans to boost Canada’s economic competitiveness is by tackling the country’s internal trade barriers. In the face of Trump’s tariffs, the removal of these barriers could boost Canada’s gross domestic product (GDP) by as much as $200 billion a year.
“The government will introduce legislation to
remove all remaining federal barriers to internal trade
and labour mobility by Canada Day,” King Charles said. “Numerous premiers have already taken vital steps to break down provincial and territorial barriers to trade.”
Ontario has led the way on this file, signing memorandums of understanding to tear down interprovincial trade barriers with Nova Scotia, New Brunswick and Manitoba.
The Committee on Internal Trade, which oversees the implementation of the
Canadian Free Trade Agreement, has until June 1 to provide a plan for Canada-wide credential recognition. But challenges remain, with Nova Scotia adding amendments to its own legislation to preserve provincial regulatory authority over all workers.
Getting big projects done
The throne speech also highlighted the federal government’s plan to create a Major Federal Project Office, which will
cut the wait time for project approvals
to two years from five years, while promising to keep environmental standards and constitutional obligations to Indigenous peoples.
“Given the pace of change and the scale of opportunities, speed is of the essence,” King Charles said.
The government will also sign co-operation agreements with provinces and territories within six months to realize its goal of “one project, one review.”
Last week, Energy and Natural Resources Minister Timothy Hodgson told an audience at the Calgary Chamber of Commerce that “energy is Canada’s superpower” in a speech that was largely seen as an olive branch to the West.
There were no specifics on proposed policy changes, but the speech highlighted the need for Canada to have a competitive industrial policy.
“It will enable Canada to become the world’s leading energy superpower in both clean and conventional energy,” King Charles said. “To build an industrial strategy that will make Canada more globally competitive while fighting climate change.”
• Email: jgowling@postmedia.com
Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.
Government's mission is to build 'strongest economy in the G7:' King Charles III
2025-05-27 19:11:54
