Mark Carney's Liberal government plans to implement a middle-class tax cut and remove federal barriers to interprovincial trade by Canada Day, as part of a new budget. Legislation to achieve this will be introduced, along with measures to facilitate the free movement of goods, services, and workers across Canada.
A new cabinet, smaller than his predecessor's, will be appointed within two weeks, aiming for gender parity and regional representation. Parliament's recall is expected in late May, followed by a Throne Speech and budget approval.
Immediate trade and security negotiations with the U.S. are planned, addressing potential tariffs on auto parts. The G7 summit in June will be a focus, with an invitation extended to Ukrainian President Zelensky. Canada's substantial aid to Ukraine will continue.
The government aims to increase Canada's economy by $250 billion by removing trade barriers. A "First Mile Fund" will invest in transportation and transmission networks to link resource extraction sites.
Mark Carney is expected to name a new cabinet within two weeks of his election victory and recall Parliament soon after.
A senior Liberal official told The Globe and Mail that by Canada Day, the new government plans to bring in a new budget that includes a promised middle class tax cut and legislation to remove federal impediments to interprovincial trade.
The Globe and Mail is not identifying the official who was not authorized to discuss the Carney government’s plans.
Mr. Carney has promised to initiate immediate new trade and security negotiations with the administration in the United States as Canada braces for tariffs on auto parts that are expected to take effect on May 3.
He also intends to put a new face on the cabinet that will stand out from that of his predecessor, Justin Trudeau, the official said. The cabinet will be no larger than 30 people, smaller than Mr. Trudeau’s 37, the official said. Mr. Carney unveiled a 24-member cabinet when he became Prime Minister on March 14.
Some of the potential new MPs the Prime Minister is expected to bring into cabinet are former Quebec finance minister Carlos Leitao, ex-Vancouver mayor Gregor Robertson, former Delta Chamber of Commerce executive director Jill McKnight in B.C., climate change activist Shannon Miedema in Halifax and gun control advocate Nathalie Provost in Quebec. The official said Mr. Carney is determined to have a gender-parity cabinet that also ensures regional representation.
No serious discussions have taken place about what cabinet role would be assigned to new MPs and whether senior ministers such as Finance Minister François-Philippe Champagne, Foreign Affairs Minister Mélanie Joly and Trade Minister Dominic LeBlanc would keep their current high-profile posts.
Once the cabinet is in place, the official said Parliament is expected to be recalled in late May, with a Throne Speech that sets out the government’s legislative ambitions for the next couple of years. But the main priority will be a federal budget to approve spending and a promised tax cut. The budget will also mark a formal end to the consumer carbon levy, an issue that had divided Canadians for years.
The new Parliament will also include legislation to remove interprovincial trade barriers under federal jurisdiction, the official said.
In March, when Mr. Carney met the premiers and territorial leaders, he promised to move quickly to eliminate trade barriers and discussed finding ways to efficiently move energy and critical minerals across the country.
He pledged to introduce a “First Mile Fund” to provide capital to build transmission and transportation networks to link natural resource extraction sites to rail lines and roads.
He has not ruled out a pipeline from oil-rich Alberta to Eastern Canada. Quebec has previously opposed an east-west pipeline, but Premier François Legault now says opinions are changing because of the U.S. economic threats.
Removing barriers to the free movement of workers, goods and services across the country would increase the size of Canada’s economy by $250-billion, Mr. Carney has said.
Mr. Carney promised to table legislation by July 1 to allow goods to travel across the country barrier-free. He said his government would also remove labour mobility restrictions in federally regulated professions.
He has also said he will within days of being elected start trade and security talks with the U.S. administration.
President Donald Trump, who wants to impose tariffs to force manufacturers to relocate to the U.S., has already caused economic damage and job losses in Canada by imposing 25-per-cent tariffs on steel and aluminum imports. He has announced 25-per-cent levies on foreign-made vehicles, including those from Canada.
Mr. Carney and his government will also be focusing on the G7 summit with the U.S, Britain, Germany, France, Italy and Japan on June 15-17 in Kananaskis, Alta.
It’s expected to be a fraught meeting, with allies annoyed at Mr. Trump for his trade war and at odds with him over what appears to be a favourable attitude toward Russia in its war with Ukraine. Mr. Carney has invited Ukrainian President Volodymyr Zelensky to the G7 summit in a sign of solidarity as Russia’s invasion of Ukraine enters its fourth year.
Canada has so far provided almost $20-billion in assistance to Ukraine, including $4.5-billion in military hardware.
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