Friday March 21, 2025 | OTTAWA, ON [Reporting from VICTORIA, BC – Updated March 22, 2025]
by Mary P Brooke | Island Social Trends
Behind closed doors at the Canadian War Museum in Ottawa, this afternoon the new prime minister shared with Canada’s Premiers his plan to build one strong Canadian economy.
This is in response to the trade war launched by the United States against Canada. In many ways, the solutions are things the federal government should have been doing already toward greater trade and economic resilience in this country.
Just yesterday the Bank of Canada Governor Tiff Macklem said Canada’s economic productivity stalled in 2000; for 25 years some sectors have zoomed ahead while many have become stagnant or even faltered.
Election starts Sunday:
In two days the Writ will drop, and Canadians will be into a federal election to choose their next government — possibly a majority government (Liberal or Conservative) with a mandate for up to four years.
Today’s meeting was an opportunity for Carney to set some momentum for the Liberal vision for this country’s adaptation to challenging economic times and — in his view — get the country back on track.
Urgency required:
“The trade war brought on by the United States has renewed the urgency to address longstanding barriers that have fragmented our economy and reduced opportunities for Canadians,” said Carney today.
He updated premiers on the Government of Canada’s actions to support workers and businesses affected by tariffs.
To support workers, the new government will:
- Temporarily waive the one-week employment insurance (EI) waiting period.
- Suspend rules around separation for a six-month period, so workers don’t have to exhaust severance pay before collecting EI.
- Make it easier to access EI by increasing regional unemployment rate percentages.
There was no mention of EI reform; only 40% of workers in Canada can expect to rely on EI.
To support businesses, the new government will:
- Defer corporate income tax payments and GST/HST remittances from April 2 to June 30, 2025, providing up to $40 billion in liquidity to businesses.
- Deploy a new financing facility for businesses.
- Provide more funding to Canada’s regional development agencies, so they can better support businesses.
Beyond offsetting of tariffs:
The Prime Minister and the premiers today agreed that by working together to unlock economic projects and remove barriers, Canada can more than offset the effects of U.S. tariffs.
That would be done by creating higher-paying jobs, maximizing our economic potential, and becoming stronger at home and stronger abroad.
National trade and economic corridor:
A suite of measures to develop a national trade and economic corridor was outlined by Carney to the premiers.
The corridor will be intended to drive investment, create jobs, and build economic growth. It will include:
- The creation of a First Mile Fund, building transportation networks to connect energy extraction sites to rail lines and roads. By providing capital to finance these key infrastructure projects across the country, the Government of Canada will expedite project construction and create a more integrated and accessible Canadian economy.
- A “one window” approval process, streamlining approvals for large-scale, national-interest infrastructure projects. This new measure will create clear, predictable, and efficient review processes – with the highest standards for safety, environmental protection, and Indigenous consultation – and reduce uncertainty for investors.
- A contribution agreement of up to $200 million toward the construction, commissioning, and operation of a new Indigenous majority-owned Cedar LNG processing facility. A partnership between the Haisla Nation and the Pembina Pipeline Corporation, this project will create hundreds of highly skilled construction and trades jobs, generate over $275 million in economic growth, and get Canadian energy to domestic and international markets.
- A $175 million investment in the Hudson Bay Railway and at the Port of Churchill, in Manitoba. This critical investment in Canadian trade and railway infrastructure will expand and open new transportation corridors, bolster economic growth and reconciliation in the Canadian Arctic and North, and help get Canadian products to global markets.
Breaking down interprovincial trade barriers:
Carney also stressed the imperative to break down barriers to interprovincial trade.
Toward building a stronger and fairer economy, he committed to table legislation by July 1, 2025, to eliminate all federal barriers to interprovincial trade and labour mobility and to remove all federal exemptions under the Canada Free Trade Agreement.
By harmonizing regulations and enhancing labour mobility, Canada can create a truly open Canadian market – one that reduces costs for its businesses and consumers alike. This will help strengthen supply chains, boost productivity, and unlock new opportunities for Canadian companies.
Premiers after the meeting:
Before the meeting with Carney, a few premiers addressed media in Ottawa with support for the discussion about dropping interprovincial trade barriers and improving cross-country infrastructure, including Ontario Premier Doug Ford, Manitoba Premier Wab Kinew, Quebec Premier Francois Legault, and New Brunswick Premier Susan Holt.
Three premiers were acknowledged by the Prime Minister as attending remotely: Scott Moe (Saskatchewan), Danielle Smith (Alberta) and Andrew Furey (Newfoundland and Labrador). Moe and Smith are Conservative provincial leaders; Furey is Liberal but in recent weeks announced his intention to resign.
BC Premier David Eby also participated virtually. As of Friday evening, the Premier’s office has not yet issued a statement about his participation or his position on what was discussed.
===== RELATED:
- Carney & Premiers discuss interprovincial trade, economic infrastructure, more housing & being an energy superpower (March 21, 2025)
- Carney on tariff challenge: do things faster and at a different scale (March 20, 2025)
- Bank of Canada Governor: more uncertainty, tough decisions as trade war escalates (March 20, 2025)
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