Business
Bad federal policy helps increase airfare in Canada

From the Fraser Institute
By Jake Fuss and Alex Whalen
Canadian air travel can be summed up in a few words—poor service, high ticket prices and little choice. And as a federal election looms, Canadians should understand that bad federal policy is to blame.
According to the International Air Transport Association, Canada ranks 101st out of 116 countries for the cost of air travel. And customer complaints against Canadian airlines have grown more than sixfold between fiscal years 2018/19 and 2022/23.
Why are ticket prices so high?
For starters, taxes and fees (imposed by governments and airports) comprise a large portion (25 to 35 per cent) of airfare costs in Canada. For example, “airport improvement” fees average $32.20 per departing passenger at Canada’s largest airports compared to $6.47 in the United States and $16.38 in Australia. For air traffic control (ATC), airlines pay charges based on distance, geography and other factors, and these costs are passed to consumers. In one illustrative example, to fly a Boeing 777 in Canada, airlines must pay an estimated $802 in ATC fees compared to between $192 and $478 in the United States and $493 in Mexico (all figures in Canadian dollars).
Moreover, Canadians pay between $9.46 and $34.42 per ticket in “security” fees, more than Americans (C$7.65) and Australians (C$4.80). Canada’s “landing” fees—charged by the airports based on the weight of the plane—are among the highest in the world and 35 to 75 per cent higher than at U.S. airports.
Our high fees originate in part due to Canada’s flawed airport ownership structure. The federal government owns the land where Canada’s major airports are built, and leases it back to not-for-profit airport authorities that pay rent—up to 12 per cent of airport revenue—to Ottawa. The airports impose fees on passengers to recoup this revenue.
But while fees help increase costs for airfare in Canada, another culprit is the lack of competition among airlines. Crucially, the federal government prevents foreign airlines from operating domestic routes within Canada’s borders, which severely limits choice and competition. While the government allows a foreign airline such as Lufthansa to fly from Frankfurt to Toronto, it prevents Lufthansa from flying passengers from Toronto to another Canadian city. As a result, there’s little competitive pressure for Canadian airlines to lower their prices for air travel within Canada’s borders.
The European Union, in contrast, removed such restrictions for member-states. The result? More competition including from new low-cost carriers such as Ryanair, a 34 per cent decline in ticket prices, more cross-border routes, and greater flight frequencies. The entry of new low-cost carriers alone helped lower airfares by 20 per cent.
Given the sorry state of air travel in Canada, our new study identifies four ways the federal government can improve competitiveness and lower airfare.
First, the government should reduce taxes and fees to be more in line with other countries. Second, the government should negotiate deals with other countries including the United States to allow foreign airlines to operate within Canada in exchange for Canadian airlines operating in those countries, which would help both Canadian consumers and Canadian airlines. Indeed, according to a 2016 report from the federal government, restrictions on foreign airlines increase air travel costs for Canadians and have outlived their usefulness. The report recommended Canada work towards an “open common market for air services” with peer countries. The key is reciprocity—if U.S. airlines, for example, are allowed access to the Canadian domestic air travel market, Canadian airlines must also have access to the U.S. market.
Third, the federal government should follow in the footsteps of Europe, Australia and New Zealand, and sell its remaining interests in airport leases and allow for-profit organizations to own and operate airports in Canada.
Lastly, the government should reduce the regulatory burden on the airline industry while maintaining strong safety standards. On this front, Canada can emulate the successful deregulation effort undertaken in the United States in the late 1970s and 1980s when widespread reform helped produce more competition, more consumer choice, lower fares and safety improvements.
Canadians will likely head to polls sometime this spring. If the next federal government wants to help improve air travel service quality, increase consumer choice and lower airfares, it should reform Canada’s antiquated airline policies.
Agriculture
Liberal win puts Canada’s farmers and food supply at risk

This article supplied by Troy Media.
A fourth Liberal term means higher carbon taxes and trade risks. Could Canada’s farmers and food security be on the line?
The Liberal Party, now led by Mark Carney, has secured a fourth consecutive term, albeit once again with a minority mandate. This time, however, the Liberals have a stronger hand, as they can rely not only on the NDP but also the Bloc Québécois to maintain power.
This broader base of parliamentary support could provide much-needed political stability at a crucial time, particularly as Canada prepares for a new round of trade negotiations with the United States and Mexico.
For the agri-food sector, the implications are significant. From carbon taxes to trade rules, federal decisions play a decisive role in shaping the costs and risks Canadian farmers face.
First and foremost, carbon pricing will remain a central issue. Carney has made it clear that the industrial carbon tax will stay—a policy that continues to erode the competitiveness of Canada’s agri-food sector, where fuel, fertilizer and transportation costs are especially sensitive to carbon pricing. The tax, currently set at $95 per metric tonne, is scheduled to climb to $170 by 2030.
While consumers may not see this tax directly, businesses certainly do. More concerning is the Liberals’ intention to introduce a border carbon adjustment for imports from countries without equivalent carbon pricing regimes. While this could theoretically protect Canadian industry, it also risks making food even more expensive for Canadian consumers, particularly if the U.S., our largest trading partner, remains uninterested in adopting similar carbon measures. Acting alone risks undermining both our food security and our global competitiveness.
Another looming issue is supply management. Although all parties pledged during the campaign not to alter Canada’s system for dairy, poultry and eggs, this framework—built on quotas and high import tariffs—is increasingly outdated. It is almost certain to come under pressure during trade negotiations. The American dairy lobby, in particular, will continue to demand greater access to Canadian markets. The Liberals have a chance to chart a more forward-looking path. Modernizing supply management could lead to a more competitive, resilient industry while providing consumers with greater choice and better prices.
The previous Parliament’s passage of Bill C-282, which sought to shield supply managed sectors from all future trade negotiations, was a deeply flawed move.
Fortunately, the new parliamentary makeup should make it far less likely that such protectionist legislation will survive. A more pragmatic approach to trade policy appears possible.
On the domestic front, there are reasons for cautious optimism. The Liberals have promised to eliminate remaining federal barriers to interprovincial trade and to improve labour mobility, longstanding obstacles to the efficient movement of agri-food products across Canada. For example, differing provincial rules often prevent products like cheese, meat or wine from being sold freely across provinces, frustrating farmers and limiting consumer choice. Momentum was building before the election, and it must continue if we are serious about building a stronger domestic food economy.
Infrastructure investment is another bright spot. The Liberals pledged more than $5 billion through a Trade Diversification Corridor Fund to upgrade Canada’s severely undercapitalized export infrastructure. Strategic investment in trade gateways is overdue and critical for agri-food exporters looking to reduce reliance on the United States and expand into global markets.
Finally, the Liberal platform was alone in explicitly committing to support food processing in Canada, a crucial pillar of domestic food security. An increased focus on manufacturing will not only create jobs but also reduce reliance on imported food products, making Canada more resilient in the face of global disruptions.
Farmers have long felt sidelined by urban-centric Liberal governments. The past four years were marked by regulatory and trade clashes that deepened that divide. The hope now is that with greater political stability and a clearer focus on competitiveness, the next four years will bring a more constructive relationship between Ottawa and Canada’s agri-food sector.
If the Liberals are serious about food security and economic growth, now is the time to reset the relationship with Canada’s farmers, not ignore them yet again.
Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain.
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.
Business
Trump’s bizarre 51st state comments and implied support for Carney were simply a ploy to blow up trilateral trade pact

From LifeSiteNews
Trump’s position on the Canadian election outcome had nothing to do with geopolitical friendships and everything to do with America First economics.
Note from LifeSiteNews co-founder Steve Jalsevac: This article, disturbing as it is, appears to explain Trump’s bizarre threats to Canada and irrational support for Carney. We present it as a possible explanation for why Trump’s interference in the Canadian election seems to have played a large role in the Liberals’ exploitation of the Trump threat and their ultimate, unexpected success.
To understand President Trump’s position on Canada, you have to go back to the 2016 election and President Trump’s position on the North American Free Trade Agreement (NAFTA) renegotiation. If you did not follow the subsequent USMCA process, this might be the ah-ha moment you need to understand Trump’s strategy.
During the 2016 election President Trump repeatedly said he wanted to renegotiate NAFTA. Both Canada and Mexico were reluctant to open the trade agreement to revision, but ultimately President Trump had the authority and support from an election victory to do exactly that.
In order to understand the issue, you must remember President Trump, Commerce Secretary Wilbur Ross, and U.S. Trade Representative Robert Lighthizer each agreed that NAFTA was fraught with problems and was best addressed by scrapping it and creating two separate bilateral trade agreements. One between the U.S. and Mexico, and one between the U.S. and Canada.
In the decades that preceded the 2017 push to redo the trade pact, Canada had restructured their economy to: (1) align with progressive climate change; and (2) take advantage of the NAFTA loophole. The Canadian government did not want to reengage in a new trade agreement.
Canada has deindustrialized much of their manufacturing base to support the “environmental” aspirations of their progressive politicians. Instead, Canada became an importer of component goods where companies then assembled those imports into finished products to enter the U.S. market without tariffs. Working with Chinese manufacturing companies, Canada exploited the NAFTA loophole.
Justin Trudeau was strongly against renegotiating NAFTA, and stated he and Chrystia Freeland would not support reopening the trade agreement. President Trump didn’t care about the position of Canada and was going forward. Trudeau said he would not support it. Trump focused on the first bilateral trade agreement with Mexico.
When the U.S. and Mexico had agreed to terms of the new trade deal and 80 percent of the agreement was finished, representatives from the U.S. Chamber of Commerce informed Trudeau that his position was weak and if the U.S. and Mexico inked their deal, Canada would be shut out.
The U.S. Chamber of Commerce was upset because they were kept out of all the details of the agreement between the U.S. and Mexico. In actuality, the U.S. CoC was effectively blocked from any participation.
When they went to talk to the Canadians the CoC was warning them about what was likely to happen. NAFTA would end, the U.S. and Mexico would have a bilateral free trade agreement (FTA), and then Trump was likely to turn to Trudeau and say NAFTA is dead, now we need to negotiate a separate deal for U.S.-Canada.
Trudeau was told a direct bilateral trade agreement between the U.S. and Canada was the worst possible scenario for the Canadian government. Canada would lose access to the NAFTA loophole and Canada’s entire economy was no longer in a position to negotiate against the size of the U.S. Trump would win every demand.
Following the warning, Trudeau went to visit Nancy Pelosi to find out if Congress was likely to ratify a new bilateral trade agreement between the U.S. and Mexico. Pelosi warned Trudeau there was enough political support for the NAFTA elimination from both parties. Yes, the bilateral trade agreement was likely to find support.
Realizing what was about to happen, Prime Minister Trudeau and Chrystia Freeland quickly changed approach and began to request discussions and meetings with USTR Robert Lighthizer. Keep in mind more than 80 to 90 percent of the agreement was already done by the U.S. and Mexico teams. Both President Andres Manuel Lopez Obrador and President Trump were now openly talking about when it would be finalized and signed.
Nancy Pelosi stepped in to help Canada get back into the agreement by leveraging her Democrats. Trump agreed to let Canada engage, and Lighthizer agreed to hold discussions with Chrystia Freeland on a tri-lateral trade agreement that ultimately became the USMCA.
The key points to remember are: (1) Trump, Ross, and Lighthizer would prefer two separate bilateral trade agreements because the U.S. import/export dynamic was entirely different between Mexico and Canada. And because of the loophole issue, (2) a five-year review was put into the finished USMCA trade agreement. The USMCA was signed on November 30, 2018, and came into effect on July 1, 2020.
TIMELINE: The USMCA is now up for review (2025) and renegotiation in 2026!
This timeline is the key to understanding where President Donald Trump stands today. The review and renegotiation is his goal.
President Trump said openly he was going to renegotiate the USMCA, leveraging border security (Mexico) and reciprocity (Canada) within it.
Following the 2024 presidential election, Prime Minister Justin Trudeau traveled to Mar-a-Lago and said if President Trump was to make the Canadian government face reciprocal tariffs, open the USMCA trade agreements to force reciprocity, and/or balance economic relations on non-tariff issues, then Canada would collapse upon itself economically and cease to exist.
In essence, Canada cannot survive as a free and independent north American nation, without receiving all the one-way benefits from the U.S. economy.
To wit, President Trump then said that if Canada cannot survive in a balanced rules environment, including putting together their own military and defenses (which it cannot), then Canada should become the 51st U.S. state. It was following this meeting that President Trump started emphasizing this point and shocking everyone in the process.
However, what everyone missed was the strategy Trump began outlining when contrast against the USMCA review and renegotiation window.
Again, Trump doesn’t like the tri-lateral trade agreement. President Trump would rather have two separate bilateral agreements; one for Mexico and one for Canada. Multilateral trade agreements are difficult to manage and police.
How was President Trump going to get Canada to (a) willingly exit the USMCA; and (b) enter a bilateral trade agreement?
The answer was through trade and tariff provocations, while simultaneously hitting Canada with the shock and awe aspect of the 51st state.
The Canadian government and the Canadian people fell for it hook, line, and sinker.
Trump’s position on the Canadian election outcome had nothing to do with geopolitical friendships and everything to do with America First economics. When asked about the election in Canada, President Trump said, “I don’t care. I think it’s easier to deal, actually, with a liberal and maybe they’re going to win, but I don’t really care.”
By voting emotionally, the Canadian electorate have fallen into President Trump’s USMCA exit trap. Prime Minister Mark Carney will make the exit much easier. Carney now becomes the target of increased punitive coercion until such a time as the USMCA review is begun, and Canada is forced to a position of renegotiation.
Trump never wanted Canada as a 51st state.
Trump always wanted a U.S.-Canada bilateral trade agreement.
Mark Carney said the era of U.S.-Canadian economic ties “are officially declared severed.”
Canada has willingly exited the USMCA trade agreement at the perfect time for President Trump.
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