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Parliament’s Debate on Bill 377: A Battle for Transparency, Accountability, and the Control of National Security

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The Opposition with Dan Knight

Inside the Committee Circus: How Bill 377 Became a Battleground for Liberal Control Over Parliamentary Transparency!

In what could only be described as a bureaucratic circus, the Standing Committee on Procedure and House Affairs met to discuss Bill 377—a straightforward proposal that would give Members of Parliament (MPs) the right to apply for security clearances. What should have been a common-sense debate about empowering elected officials to do their jobs quickly turned into a showcase of Liberal fear-mongering, bureaucratic hand-wringing, and hypocritical stonewalling. The debate was rich in procedural distractions, leaving the core issue—government transparency—buried under layers of red tape.

The Fight for Transparency in Parliament: What CSIS and the PMO Had to Say

The debate over Bill 377—the proposal that would allow Members of Parliament (MPs) to apply for security clearances—kicked off with testimony from officials who wield significant influence over national security. First up was Nicole Giles, a representative from CSIS (Canadian Security Intelligence Service), and Sean Jorgensen, a senior official from the Prime Minister’s Office (PMO). Their comments set the stage for the battle between parliamentary transparency and bureaucratic control that would dominate the session.

Nicole Giles, representing CSIS, emphasized the importance of the security screening process in protecting national security and maintaining trust between the government and its citizens. She detailed how the security clearance process involves a rigorous collection of personal information and a careful vetting of individuals to assess their reliability and loyalty to Canada. According to Giles, this process is meant to ensure that those granted access to classified information can be trusted to protect it. But here’s the kicker: while CSIS insists that its process is designed to be rigorous, the question of who is deemed trustworthy seemed to stop at the doorstep of Parliament.

Giles explained that the process for obtaining security clearances involves informed consent and the use of data from law enforcement and intelligence sources. “The decision to grant a security clearance is made based on this evidence, ensuring individuals can be trusted to safeguard national security,” she said. Fair enough—but the fact that elected MPs are not included in this system, while low-level staffers and bureaucrats are, seemed like a glaring oversight that Bill 377 aimed to correct.

On the other side of the debate, Sean Jorgensen from the PMO seemed far more concerned with maintaining the status quo. Jorgensen echoed many of the typical bureaucratic fears about expanding access to security clearances, raising concerns about the potential for MPs to access sensitive information without the proper need-to-know basis. His testimony was filled with vague warnings about the risks of allowing more people into the security bubble, suggesting that MPs could pose a risk if not properly controlled.

But Jorgensen’s real agenda was clear: he wasn’t there to talk about enhancing transparency or improving parliamentary oversight. He was there to protect the PMO’s stranglehold on information. By casting doubt on whether MPs should even have the right to apply for security clearances, he was reinforcing the bureaucratic gatekeeping that has allowed the PMO to keep a tight grip on sensitive national security information.

Jorgensen and Giles set the stage for what would become a clear battle: Bill 377 wasn’t just about security clearances. It was about power—specifically, who holds it and who has access to the information that shapes the nation’s security policy. With CSIS and the PMO officials framing the debate, the scene was set for the Liberal swamp to defend their turf against a growing demand for accountability and transparency from parliamentarians.

What became apparent throughout the session is that while Giles and Jorgensen were trying to paint a picture of security concerns, the reality was that their testimony boiled down to protecting the existing system. The bureaucratic elite, including the PMO, seemed less interested in guarding national security and more interested in keeping MPs in the dark—ensuring that only a select few in the PMO and bureaucracy had the keys to the national security kingdom.

This fear of transparency would soon become a central theme as Conservative MPs like Alex Ruff and Eric Duncan took the floor, battling against the Liberal excuses and bureaucratic red tape designed to keep Parliament out of the national security loop.

Alex Ruff: The Champion of Accountability

Conservative MP Alex Ruff, the driving force behind Bill 377, came to the committee prepared to lay down a case so obvious it’s almost laughable that it needed to be debated. Ruff’s message was refreshingly simple: MPs should have the right to apply for security clearances, just like any other government official, intern, or low-level bureaucrat. And let’s not forget, we’re talking about Members of Parliament—elected officials responsible for voting on national security budgets and overseeing security policies that protect Canadians. How, Ruff asked, is it possible that these elected officials can’t even apply for the same clearances that government staffers are routinely granted?

Ruff’s frustration with the current system was evident from the start. As he rightly pointed out, the fact that interns—yes, interns—working in ministers’ offices can receive security clearances, while MPs are kept out of the loop, is nothing short of absurd. “If interns working in ministerial offices are given security clearances, why should MPs be left out of the loop?” Ruff questioned, nailing the fundamental issue with brutal accuracy. This isn’t some wild Conservative push for immediate access to classified documents. Ruff wasn’t demanding that MPs be handed national secrets on a silver platter. Instead, he was making the logical, common-sense argument that MPs—like everyone else—should have the opportunity to be vetted through the rigorous clearance process that is already in place.

Let’s stop for a second and think about the insanity of the current system. On one hand, you’ve got MPs, individuals who are entrusted by the Canadian people to make critical decisions affecting national security, being treated as though they’re untrustworthy amateurs. On the other hand, the same government hands out clearances to interns and bureaucrats without hesitation. Ruff was right to call this out for the farce that it is. The current setup not only undermines the authority of Parliament, but it also weakens the entire oversight process by keeping elected officials in the dark.

But Ruff wasn’t just there to point out the absurdity of the system—he was there to expose the real agenda behind the Liberal opposition to Bill 377. As the session dragged on, it became increasingly clear that the bureaucratic establishment and Liberal MPs weren’t interested in transparency. No, their goal was simple: maintain control. The PMO and its bureaucratic foot soldiers have grown accustomed to controlling access to information, shielding themselves from real scrutiny and accountability. And they’re desperate to keep things that way.

Ruff called out their tactics head-on. The Liberals, along with their bureaucratic allies, were trotting out every fear-mongering excuse they could think of. They raised hypothetical risks of MPs misusing classified information, warned of the dangers to international relations, and essentially treated elected officials like they couldn’t be trusted with the same basic tools the government hands out to junior staffers. Ruff saw right through it, and so should everyone else. This isn’t about protecting national security—this is about protecting power. The Liberals are terrified that giving MPs the ability to apply for clearances will disrupt their monopoly on sensitive information and weaken their ability to control the narrative.

Ruff’s argument is grounded in common sense and fairness. He’s not asking for special treatment—he’s asking for elected MPs to be held to the same standards as any other government official. The idea that MPs—individuals who represent the Canadian people—can’t even apply for a security clearance is insulting to the entire democratic process. By denying MPs this right, the Liberals are effectively saying that the public’s elected representatives can’t be trusted, and that only unelected bureaucrats should be allowed access to critical national security information.

What makes Ruff’s position even more powerful is that it’s not partisan—it’s pragmatic. He’s advocating for a system where MPs, regardless of their political affiliation, have the tools they need to do their jobs effectively. In fact, Ruff’s call for MPs to be allowed to apply for clearances is one of the most basic steps toward ensuring that Parliament functions as it should—as a body that can oversee and hold the government accountable on national security matters.

Yet, the response from the Liberal swamp was predictably hostile. They threw up bureaucratic roadblocks, introduced irrelevant procedural delays, and employed scare tactics to stall any real progress. The Liberals don’t want MPs—especially opposition MPs—having access to sensitive information, because it would mean that Parliament could finally hold the government accountable on key national security issues. They are far more interested in maintaining the status quo, where the PMO and bureaucrats have a stranglehold on information and can keep MPs—and by extension, the Canadian public—in the dark.

Ruff’s clarity of purpose stood in stark contrast to the bureaucratic noise surrounding him. He didn’t overcomplicate things. His message was straightforward: MPs need to have the right to apply for security clearances to do their jobs. And anyone who opposes that isn’t just standing in the way of Bill 377—they’re standing in the way of democracy and government accountability. Ruff’s push for common-sense reform is exactly what Parliament needs, and the Liberal resistance to this bill is nothing more than a desperate attempt to protect their power and secrecy.

Sherry Romanado: The Defender of the Status Quo

Liberal MP Sherry Romanado was one of the first to throw up procedural roadblocks during the committee’s debate on Bill 377. Rather than focusing on addressing the obvious issue—whether elected MPs should have the right to apply for security clearances—she chose to bog the discussion down with irrelevant questions designed to create new problems rather than solve the existing ones. Romanado fixated on the bureaucratic process of obtaining these clearances, questioning whether MPs should even have the right to apply in the first place.

She asked questions like, “Who would determine whether MPs should qualify for a security clearance?” and suggested that some kind of administrator or gatekeeper should be responsible for deciding which MPs could apply. This is classic Liberal strategy: instead of embracing transparency and accountability, she advocated for more layers of red tape and procedural delays. Her line of questioning wasn’t about protecting national security—it was about slowing down the process and keeping MPs, especially those outside the Liberal bubble, out of the loop.

Romanado’s approach was a transparent attempt to stall. By adding needless bureaucratic hurdles, she hoped to wrap the issue in so many layers of bureaucracy that it would get stuck in procedural purgatory. And that’s exactly what the Liberal swamp thrives on: bureaucratic dead-ends and vague questions designed to protect power and secrecy rather than empower the people’s representatives. By the end of her remarks, it was crystal clear—Romanado wasn’t interested in empowering MPs to fulfill their oversight role. She was laser-focused on maintaining the status quo and keeping control firmly in the hands of the PMO and bureaucrats.

BS Meter: Extremely High

Romanado’s entire line of questioning was pure bureaucratic theater, aimed at stalling real progress and keeping MPs in the dark. Her insistence on adding administrators or gatekeepers to the process was a desperate attempt to create roadblocks where none are needed. Romanado wasn’t working to protect national security; she was working to protect the Liberal power structure. This wasn’t about security—it was about control.

Marie-Hélène Gaudreau: Caution Without Vision

Bloc Québécois MP Marie-Hélène Gaudreau echoed some of the Liberal bureaucratic fears, but her concerns were framed around international relations and parliamentary privilege. Gaudreau questioned whether giving MPs access to classified information could compromise Canada’s relationships with allies like the Five Eyes and raised hypothetical scenarios where MPs might inadvertently disclose sensitive information. She warned of the risks this could pose to national security, stating, “What we would like to be able to do is provide that specific, perhaps classified information to a parliamentarian.”

However, Gaudreau seemed to miss the point. Bill 377 isn’t about giving MPs blanket access to sensitive material—it’s about letting them apply for a security clearance and undergo the same vetting process as other government officials. Gaudreau’s overly cautious stance mirrored the Liberal reluctance to trust MPs with any level of responsibility over national security. Instead of advocating for greater parliamentary oversight, she leaned heavily into fear-mongering, treating MPs as though they were a potential security threat rather than the elected representatives they are.

BS Meter: Medium-High

Gaudreau’s concerns, though reasonable to a degree, leaned too heavily on hypotheticals and fear-based arguments. Instead of pushing for more parliamentary transparency and accountability, she echoed the status quo, focusing on potential risks rather than recognizing the importance of MPs having access to the information they need. Her stance mirrored the bureaucratic excuses of those who are more interested in maintaining control than empowering elected representatives.

Ryan Turnbull: The Liberal Apologist

Of course, Ryan Turnbull—the Liberal MP who never misses an opportunity to defend the bureaucratic elite—stepped in with his fear-laden hypotheticals about the risks of parliamentary privilege. Turnbull was particularly concerned that if MPs were granted security clearances, they might misuse or disclose classified information during parliamentary sessions. He warned of onward disclosure risks, essentially treating MPs as if they’re reckless amateurs who can’t be trusted to handle sensitive material responsibly.

Turnbull’s remarks were a classic example of Liberal paranoia. He warned that without the right frameworks, Bill 377 could increase the risk of classified information being leaked, and suggested that parliamentary privilege could be used to shield MPs from the consequences of such leaks. What Turnbull conveniently ignored was that MPs, like any other officials with security clearances, would be bound by the same rules and regulations governing the handling of classified information.

His arguments weren’t about protecting national security—they were about protecting Liberal control over who gets access to classified material. Turnbull was just using scare tactics to justify keeping MPs out of the national security conversation, ensuring that bureaucrats and the PMO maintained their monopoly on sensitive information.

BS Meter: Off the Charts

Turnbull’s argument was pure Liberal fear-mongering. By focusing on parliamentary privilege and hypothetical scenarios of MPs misusing classified information, he created a smokescreen to justify keeping MPs in the dark. His refusal to engage with the actual purpose of Bill 377—which is about giving MPs the right to apply for security clearances—shows that his real priority is protecting the power structure and keeping control firmly in the hands of the Liberal elite. His exaggerated fears were nothing but a distraction to prevent real government transparency.

Eric Duncan: Calling Out Liberal Hypocrisy

Conservative MP Eric Duncan didn’t hold back in calling out the hypocrisy of the Liberal position. After listening for an hour of liberal obfuscation and gatekeeping he pointed out that interns and ministerial staffers are regularly granted security clearances, yet MPs—elected officials who are supposed to hold the government accountable—are treated like they can’t be trusted. Duncan’s frustration was palpable as he tore into the bureaucratic excuses being used to deny MPs the right to apply for clearances.

“Why can’t MPs apply?” Duncan asked, hammering home the absurdity of the situation. He wasn’t calling for MPs to get immediate access to classified information—he was simply advocating for MPs to have the opportunity to be vetted. His stance was clear: MPs deserve the same level of trust and access as other government officials. Duncan saw through the Liberal smokescreen and rightly called it out for what it was—a blatant attempt to keep MPs in the dark and protect the power structure.

Lindsay Mathyssen: Procedural Paralysis

NDP MP Lindsay Mathyssen played her role as the procedural nitpicker, focusing more on the logistics of Bill 377 than on the broader implications of transparency and accountability. Mathyssen raised concerns about the administrative burden of processing security clearances for MPs, as if the government couldn’t handle a few hundred additional applications. Her focus on training and compliance, while technically valid, felt like a deliberate attempt to bog the debate down in bureaucratic minutiae.

Rather than addressing the need for MPs to have access to classified information to do their jobs, Mathyssen seemed more interested in discussing the mechanics of security clearance applications. This focus on logistics was a convenient way to avoid taking a strong stance on the bill itself. In typical NDP fashion, she sidestepped the larger issue of democratic oversight, preferring instead to dwell on procedural details that only served to stall the conversation.

BS MeterHigh

Mathyssen’s intervention felt like an attempt to stall the conversation by focusing too much on the bureaucratic processes of security clearances. Rather than tackling the broader issue of democratic accountability and the need for MPs to have access to classified information, she chose to drown the discussion in procedural concerns. This is classic NDP—sidestepping the need for real action by focusing on technicalities. Mathyssen’s questions might seem pragmatic, but they ultimately dodge the bigger issue at hand: getting MPs the information they need to hold the government accountable.

The Core of the Debate: Transparency vs. Control

At the heart of this debate lies a fundamental clash between the desire for parliamentary transparency and the bureaucratic resistance to change. Bill 377 represents a push for greater accountability, empowering MPs to do their jobs by giving them the right to apply for security clearances. Yet, the Liberal swamp—with the help of cautious allies like Gaudreau and procedural obsessives like Mathyssen—has thrown up roadblocks at every turn.

The real issue isn’t the security clearance process itself, but the fear of losing control. The Liberal establishment doesn’t want MPs having access to sensitive information because it could disrupt their carefully guarded monopoly on national security oversight. By using hypotheticals, fear-mongering, and bureaucratic delay tactics, they’ve managed to stall real progress toward government transparency.

Bill 377 Is a Step Toward Accountability

Let’s cut to the chase: Bill 377 is nothing more than a common-sense proposal designed to do what every elected official in a free and democratic society should be able to do—apply for security clearances. That’s right—apply—not automatically gain access to top-secret documents, but simply go through the same vetting process as bureaucrats, staffers, and even interns working in government offices. It’s the least we should expect for those trusted to make decisions that directly impact the safety and security of our nation. Yet, here we are, watching the Liberal swamp and their bureaucratic enablers scramble to protect their stranglehold on power.

Let’s be clear about one thing: the pushback you’re hearing from Liberal MPs, bureaucrats. No, it’s about protecting their own power. They don’t want MPs—especially those from the Conservative benches—to have access to the information they need to do their jobs. Why? Because the Liberal establishment thrives in the darkness. They want to keep control centralized in the PMO and the hands of a few bureaucratic elites who answer to Justin Trudeau and his lackeys.

Ask yourself: Why are low-level staffers and interns granted security clearances, but elected MPs are treated like children who can’t be trusted with the truth? This isn’t about safety—this is about maintaining the status quo. They’re terrified of transparency. They’re terrified of accountability. And most of all, they’re terrified of MPs having the power to actually hold them accountable for their failures, their corruption, and their incompetence in safeguarding our nation.

Alex Ruff, Eric Duncan, and their Conservative colleagues aren’t fighting for some partisan gain here. They’re fighting for transparency and accountability—the two things the Liberal swamp fears the most. These MPs understand what the Liberal establishment refuses to admit: MPs represent the people. They are elected by Canadians to make decisions on behalf of the public, and denying them access to the information they need to oversee national security is a slap in the face to every Canadian citizen who voted them into office.

Bill 377 is about restoring power where it belongs—in the hands of elected representatives. It’s about ensuring that those entrusted with the responsibility to oversee Canada’s security apparatus aren’t left out of the loop by unelected bureaucrats hiding behind layers of red tape. This is about draining the swamp and taking the first step toward restoring accountability in government.

The Liberal swamp, with its endless bureaucratic fog, wants to keep everything behind closed doors. They want to maintain a system where only a select few—those who answer directly to the PMO—have access to the truth. They’ve turned national security into their own private kingdom, where only the loyal subjects of the Liberal elite are given clearance to enter. This isn’t about protecting Canada—it’s about protecting their grip on power.

But make no mistake—Bill 377 is the first strike against that corrupt system. It’s a crucial step toward ensuring that MPs have the tools they need to hold the government accountable, to oversee national security policies, and to ensure that the interests of the Canadian people are protected, not just the interests of the Liberal elite.

It’s time to cut through the bureaucratic nonsense and recognize Bill 377 for what it is: a bill that empowers MPs to do their jobs effectively. Anything less than full support for this bill is just another victory for the Liberal swamp—another step toward more secrecy, more control, and less accountability.

Canada deserves better. Canadians deserve leaders who have the power to hold their government accountable. Bill 377 is a patriotic first step toward that goal. Let’s drain the swamp and return power where it belongs—to the people and their elected representatives.

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Business

The Real Reason Canada’s Health Care System Is Failing

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From the Frontier Centre for Public Policy

By Conrad Eder

Conrad Eder supports universal health care, but not Canada’s broken version. Despite massive spending, Canadians face brutal wait times. He argues it’s time to allow private options, as other countries do, without abandoning universality.

It’s not about money. It’s about the rules shaping how Canada’s health care system works

Canada’s health care system isn’t failing because it lacks funding or public support. It’s failing because governments have tied it to restrictive rules that block private medical options used in other developed countries to deliver timely care.

Canada spends close to $400 billion a year on health care, placing it among the highest-spending countries in the Organization for Economic Co-operation and Development (OECD). Yet the system continues to struggle with some of the longest waits for care, the fewest doctors per capita and among the lowest numbers of hospital beds in the OECD. This is despite decades of spending increases, including growth of 4.5 per cent in 2023 and 5.7 per cent in 2024, according to estimates from the Canadian Institute for Health Information.

Canadians are losing confidence that government spending is the solution. In fact, many don’t even think it’s making a difference.

And who could blame them? Median health care wait times reached 30 weeks in 2024, up from 27.7 weeks in 2023, which was up from 27.4 weeks in 2022, according to annual surveys by the Fraser Institute.

Nevertheless, politicians continue to tout our universal health care system as a source of national pride and, according to national surveys, 74 per cent of Canadians agree. Yet only 56 per cent are satisfied with it. This gap reveals that while Canadians value universal health care in principle, they are frustrated with it in practice.

But it isn’t universal health care that’s the problem; it’s Canada’s uniquely restrictive version of it. In most provinces, laws restrict physicians from working simultaneously in public and private systems and prohibit private insurance for medically necessary services covered by medicare, constraints that do not exist in most other universal health care systems.

The United Kingdom, France, Germany and the Netherlands all maintain universal health care systems. Like Canada, they guarantee comprehensive insurance coverage for essential health care services. Yet they achieve better access to care than Canada, with patients seeing doctors sooner and benefiting from shorter surgical wait times.

In Germany, there are both public and private hospitals. In France, universal insurance covers procedures whether patients receive them in public hospitals or private clinics. In the Netherlands, all health insurance is private, with companies competing for customers while coverage remains guaranteed. In the United Kingdom, doctors working in public hospitals are allowed to maintain private practices.

All of these countries preserved their commitment to universal health care while allowing private alternatives to expand choice, absorb demand and deliver better access to care for everyone.

Only 26 per cent of Canadians can get same-day or next-day appointments with their family doctor, compared to 54 per cent of Dutch and 47 per cent of English patients. When specialist care is needed, 61 per cent of Canadians wait more than a month, compared to 25 per cent of Germans. For elective surgery, 90 per cent of French patients undergo procedures within four months, compared to 62 per cent of Canadians.

If other nations can deliver timely access to care while preserving universal coverage, so can Canada. Two changes, inspired by our peers, would preserve universal coverage and improve access for all.

First, allow physicians to provide services to patients in both public and private settings. This flexibility incentivizes doctors to maximize the time they spend providing patient care, expanding service capacity and reducing wait times for all patients. Those in the public system benefit from increased physician availability, as private options absorb demand that would otherwise strain public resources.

Second, permit private insurance for medically necessary services. This would allow Canadians to obtain coverage for private medical services, giving patients an affordable way to access health care options that best suit their needs. Private insurance would enable Canadians to customize their health coverage, empowering patients and supporting a more responsive health care system.

These proposals may seem radical to Canadians. They are not. They are standard practice everywhere else. And across the OECD, they coexist with universal health care. They can do the same in Canada.

Alberta has taken an important first step by allowing some physicians to work simultaneously in public and private settings through its new dual-practice model. More Canadian provinces should follow Alberta’s lead and go one step further by removing legislative barriers that prohibit private health insurance for medically necessary services. Private insurance is the natural complement to dual practice, transforming private health care from an exclusive luxury into a viable option for Canadian families.

Canadians take pride in their health care system. That pride should inspire reform, not prevent it. Canada’s health care crisis is real. It’s a crisis of self-imposed constraints preventing our universal system from functioning at the level Canadians deserve.

Policymakers can, and should, preserve universal health care in this country. But maintaining it will require a willingness to learn from those who have built systems that deliver universality and timely access to care, something Canada’s current system does not.

Conrad Eder is a policy analyst at the Frontier Centre for Public Policy.

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Dark clouds loom over Canada’s economy in 2026

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From the Fraser Institute

By Jock Finlayson

The dawn of a new year is an opportune time to ponder the recent performance of Canada’s $3.4 trillion economy. And the overall picture is not exactly cheerful.

Since the start of 2025, our principal trading partner has been ruled by a president who seems determined to unravel the post-war global economic and security order that provided a stable and reassuring backdrop for smaller countries such as Canada. Whether the Canada-U.S.-Mexico trade agreement (that President Trump himself pushed for) will even survive is unclear, underscoring the uncertainty that continues to weigh on business investment in Canada.

At the same time, Europe—representing one-fifth of the global economy—remains sluggish, thanks to Russia’s relentless war of choice against Ukraine, high energy costs across much of the region, and the bloc’s waning competitiveness. The huge Chinese economy has also lost a step. None of this is good for Canada.

Yet despite a difficult external environment, Canada’s economy has been surprisingly resilient. Gross domestic product (GDP) is projected to grow by 1.7 per cent (after inflation) this year. The main reason is continued gains in consumer spending, which accounts for more than three-fifths of all economic activity. After stripping out inflation, money spent by Canadians on goods and services is set to climb by 2.2 per cent in 2025, matching last year’s pace. Solid consumer spending has helped offset the impact of dwindling exports, sluggish business investment and—since 2023—lacklustre housing markets.

Another reason why we have avoided a sharper economic downturn is that the Trump administration has, so far, exempted most of Canada’s southbound exports from the president’s tariff barrage. This has partially cushioned the decline in Canada’s exports—particularly outside of the steel, aluminum, lumber and auto sectors, where steep U.S. tariffs are in effect. While exports will be lower in 2025 than the year before, the fall is less dramatic than analysts expected 6 to 8 months ago.

Although Canada’s economy grew in 2025, the job market lost steam. Employment growth has softened and the unemployment rate has ticked higher—it’s on track to average almost 7 per cent this year, up from 5.4 per cent two years ago. Unemployment among young people has skyrocketed. With the economy showing little momentum, employment growth will remain muted next year.

Unfortunately, there’s nothing positive to report on the investment front. Adjusted for inflation, private-sector capital spending has been on a downward trajectory for the last decade—a long-term trend that can’t be explained by Trump’s tariffs. Canada has underperformed both the United States and several other advanced economies in the amount of investment per employee. The investment gap with the U.S. has widened steadily since 2014. This means Canadian workers have fewer and less up-to-date tools, equipment and technology to help them produce goods and services compared to their counterparts in the U.S. (and many other countries). As a result, productivity growth in Canada has been lackluster, narrowing the scope for wage increases.

Preliminary data indicate that both overall non-residential investment and business capital spending on machinery, equipment and advanced technology products will be down again in 2025. Getting clarity on the future of the Canada-U.S. trade relationship will be key to improving the business environment for private-sector investment. Tax and regulatory policy changes that make Canada a more attractive choice for companies looking to invest and grow are also necessary. This is where government policymakers should direct their attention in 2026.

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