Sam Cooper

A democracy watchdog is warning that Prime Minister Mark Carney’s sprawling private investments, including substantial holdings in Brookfield as well as shares in more than 550 other companies, cause a disabling conflict of interest that cannot be solved by his so-called “ethics screen,” ultimately undermining Ottawa’s credibility and negating Carney’s capacity to confront hostile regimes, including China.

In a scathing statement this week, Democracy Watch urged Carney to fully divest his shares and stock options, arguing that Ottawa’s purported “screen” — which relies on Carney’s chosen staff to supposedly shield the prime minister from conflicted business decisions — actually “allows him to participate in, and hides his participation in, almost all decisions that affect his investments.”

“PM Carney’s so-called ‘blind’ trust isn’t blind at all,” the watchdog said. “He knows exactly what he put in, he chose his own trustee, can instruct them not to sell, and can receive updates at any time. On top of that, he owns stock options in Brookfield that he can’t sell for years, guaranteeing he stays tethered to these corporate interests.”

Democracy Watch cited the landmark 1987 Parker Commission on conflicts of interest, which concluded that top public officials must sell all investments outright and that blind trusts should be banned as ineffective “shams.”

These warnings echo The Bureau’s March 2025 pre-election investigation, which outlined in granular detail Carney’s deep entanglements with Brookfield and China.

The Bureau revealed that Brookfield, the $900 billion investment giant Carney joined in 2020, held over $3 billion in politically sensitive assets connected to Chinese state-linked real estate and energy conglomerates, as well as a significant offshore banking footprint. One of its headline deals — a $750 million stake in a Shanghai commercial property project dating back to 2013 — was tied to a Hong Kong tycoon with official links to the Chinese People’s Political Consultative Conference, a central “united front” body identified by the CIA as a tool of Beijing’s overseas influence operations.

Brookfield’s heavy exposure in Shanghai was compounded last year when, amid China’s collapsing real estate market, Carney’s company secured nearly $300 million in emergency loans from the Bank of China. As The Bureau reported, this arrangement carried echoes of Carney’s tenure as Bank of England governor, when he helped facilitate the global expansion of the Chinese financial system and lauded the internationalisation of the renminbi as “a global good.”

While Carney claims to have stepped away from operational control at Brookfield before entering politics, The Bureau’s reporting suggested that his influence over the firm’s China strategy lingered well into his leadership tenure.

Duff Conacher, co-founder of Democracy Watch, reinforced the watchdog’s position in interviews with The Bureau.

“It was very unethical for Mark Carney to hide his investments in more than 560 companies for the past four months,” Conacher said. “Unfortunately, many media outlets failed to cover the conflicts of interest, especially regarding Brookfield, and failed to point out that his so-called blind trust isn’t blind at all.”

Conacher warned that Carney’s private holdings risk tainting not just domestic policy but also Canada’s international relationships and moral authority.

“Mark Carney’s investments will affect not only his decisions about laws, policies, taxes and subsidies that affect businesses in Canada but also, given Brookfield’s business interests around the world, will also taint the Canadian government’s relationships,” Conacher said. “This will weaken the government’s actions concerning other countries, including countries like China that interfere in Canadian politics and threaten Canada’s interests in many ways.”

In yet another pre-election investigation published in February 2025, The Bureau delved into Carney’s deep political and business networks that bridge global trade interests converging around China and pro-Beijing Western business elites — networks that illustrate the same theme of ethical conflicts haunting Ottawa today.

As Canada braced for a leadership change — with Prime Minister Justin Trudeau poised to step down in February — the central question of Carney’s campaign, as The Bureau reported, was whether he would govern differently from the deeply unpopular Trudeau. That framework held until Carney’s team succeeded in shifting baby boomer voters onto a new predominant election issue: that he was the best leader to confront President Donald Trump in a trade war — a claim that, in hindsight, appears absurd to critics, given Carney’s massive personal investment interests in American companies.

Regardless, back in February, Carney’s camp insisted he was a fundamentally different figure from Trudeau.

Yet The Bureau’s closer examination of Carney’s elite network — guided by the principle that long-standing relationships of trust and shared financial interests shape governance — revealed a constellation of global influencers deeply tied to the World Economic Forum and China’s trade and finance arms, particularly the Asian Infrastructure Investment Bank (AIIB). At its core, this network of influential figures — whose stated goals center on consolidating financial power across borders to coordinate carbon-reduction policies and progressive social outcomes — included not just Carney and Trudeau but also former Canadian ambassador to China Dominic Barton, Trudeau campaign backers Mark Wiseman and Gerald Butts, and AIIB’s Jin Liqun, a senior Chinese Communist Party operative.

Carney’s influence also appeared to extend into Canada’s state broadcaster. Former Power & Politics host Evan Solomon — who in 2015 was embroiled in an art-dealing scandal involving Carney, whom he referred to as “the Guv” — later joined a consultancy with Carney’s wife and Gerald Butts. In a leaked email, cited in The Toronto Star’s 2015 art-dealing exposé, Solomon reportedly wrote: “Next year in terms of the Guv will be very interesting. He has access to the highest power network in the world.”

As it turned out, the ties between the former CBC art-dealing host and the former Bank of Canada governor stood the test of years. Solomon was ultimately chosen by Carney to run for the Liberal Party in Toronto and now serves as his Minister of Artificial Intelligence — a revealing trajectory that exemplifies the ethical ambiguity behind Carney’s deeply intertwined media, business, and political influence networks.

By Sergio R. Karas for Inside Policy

One of the most effective solutions would be to amend the Citizenship Act, making automatic citizenship conditional upon at least one parent being a Canadian citizen or permanent resident.

Amid rising concerns about the prevalence of birth tourism, many Western democracies are taking steps to curb the practice. Canada should take note and reconsider its own policies in this area.

Birth tourism occurs when pregnant women travel to a country that grants automatic citizenship to all individuals born on its soil. There is increasing concern that birthright citizenship is being abused by actors linked to authoritarian regimes, who use the child’s citizenship as an anchor or escape route if the conditions in their country deteriorate.

Canada grants automatic citizenship by birth, subject to very few exceptions, such as when a child is born to foreign diplomats, consular officials, or international representatives. The principle known as jus soli in Latin for “right of the soil” is enshrined in Section 3(1)(a) of the Citizenship Act.

Unlike many other developed countries, Canada’s legislation does not consider the immigration or residency status of the parents for the child to be a citizen. Individuals who are in Canada illegally or have had refugee claims rejected may be taking advantage of birthright citizenship to delay their deportation. For example, consider the Supreme Court of Canada’s ruling in Baker v. Canada. The court held that the deportation decision for a Jamaican woman – who did not have legal status in Canada but had Canadian-born children – must consider the best interests of the Canadian-born children.

There is mounting evidence of organized birth tourism among individuals from the People’s Republic of China, particularly in British Columbia. According to a January 29 news report in Business in Vancouver, an estimated 22–23 per cent of births at Richmond Hospital in 2019–20 were to non-resident mothers, and the majority were Chinese nationals. The expectant mothers often utilize “baby houses” and maternity packages, which provide private residences and a comprehensive bundle of services to facilitate the mother’s experience, so that their Canadian-born child can benefit from free education and social and health services, and even sponsor their parents for immigration to Canada in the future. The financial and logistical infrastructure supporting this practice has grown, with reports of dozens of birth houses in British Columbia catering to a Chinese clientele.

Unconditional birthright citizenship has attracted expectant mothers from countries including Nigeria and India. Many arrive on tourist visas to give birth in Canada. The number of babies born in Canada to non-resident mothers – a metric often used to measure birth tourism – dropped sharply during the COVID-19 pandemic but has quickly rebounded since. A December 2023 report in Policy Options found that non-resident births constituted about 1.6 per cent of all 2019 births in Canada. That number fell to 0.7 per cent in 2020–2021 due to travel restrictions, but by 2022 it rebounded to one per cent of total births. That year, there were 3,575 births to non-residents – 53 per cent more than during the pandemic. Experts believe that about half of these were from women who travelled to Canada specifically for the purpose of giving birth. According to the report, about 50 per cent of non-resident births are estimated to be the result of birth tourism. The upward trend continued into 2023–24, with 5,219 non-resident births across Canada.

Some hospitals have seen more of these cases than others. For example, B.C.’s Richmond Hospital had 24 per cent of its births from non-residents in 2019–20, but that dropped to just 4 per cent by 2022. In contrast, Toronto’s Humber River Hospital and Montreal’s St. Mary’s Hospital had the highest rates in 2022–23, with 10.5 per cent and 9.4 per cent of births from non-residents, respectively.

Several developed countries have moved away from unconditional birthright citizenship in recent years, implementing more restrictive measures to prevent exploitation of their immigration systems. In the United Kingdom, the British Nationality Act abolished jus soli in its unconditional form. Now, a child born in the UK is granted citizenship only if at least one parent is a British citizen or has settled status. This change was introduced to prevent misuse of the immigration and nationality framework. Similarly, Germany follows a conditional form of jus soli. According to its Nationality Act, a child born in Germany acquires citizenship only if at least one parent has legally resided in the country for a minimum of eight years and holds a permanent residence permit. Australia also eliminated automatic birthright citizenship. Under the Australian Citizenship Act, a child born on Australian soil is granted citizenship only if at least one parent is an Australian citizen or permanent resident. Alternatively, if the child lives in Australia continuously for ten years, they may become eligible for citizenship through residency. These policies illustrate a global trend toward limiting automatic citizenship by birth to discourage birth tourism.

In the United States, Section 1 of the Citizenship Clause of the Fourteenth Amendment to the Constitution prescribes that “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.” The Trump administration has launched a policy and legal challenge to the longstanding interpretation that every person born in the US is automatically a citizen. It argues that the current interpretation incentivizes illegal immigration and results in widespread abuse of the system.

On January 20, 2025, President Donald Trump issued Executive Order 14156: Protecting the Meaning and Value of American Citizenship, aimed at ending birthright citizenship for children of undocumented migrants and those with lawful but temporary status in the United States. The executive order stated that the Fourteenth Amendment’s Citizenship Clause “rightly repudiated” the Supreme Court’s “shameful decision” in the Dred Scott v. Sandford case, which dealt with the denial of citizenship to black former slaves. The administration argues that the Fourteenth Amendment “has never been interpreted to extend citizenship universally to anyone born within the United States.” The executive order claims that the Fourteenth Amendment has “always excluded from birthright citizenship persons who were born in the United States but not subject to the jurisdiction thereof.” The order outlines two categories of individuals that it claims are not subject to United States jurisdiction and thus not automatically entitled to citizenship: a child of an undocumented mother and father who are not citizens or lawful permanent residents; and a child of a mother who is a temporary visitor and of a father who is not a citizen or lawful permanent resident. The executive order attempts to make ancestry a criterion for automatic citizenship. It requires children born on US soil to have at least one parent who has US citizenship or lawful permanent residency.

On June 27, 2025, the US Supreme Court in Trump v. CASA, Inc. held that lower federal courts exceed their constitutional authority when issuing broad, nationwide injunctions to prevent the Trump administration from enforcing the executive order. Such relief should be limited to the specific plaintiffs involved in the case. The Court did not address whether the order is constitutional, and that will be decided in the future. However, this decision removes a major legal obstacle, allowing the administration to enforce the policy in areas not covered by narrower injunctions. Since the order could affect over 150,000 newborns each year, future decisions on the merits of the order are still an especially important legal and social issue.

In addition to the executive order, the Ban Birth Tourism Act – introduced in the United States Congress in May 2025 – aims to prevent women from entering the country on visitor visas solely to give birth, citing an annual 33,000 births to tourist mothers. Simultaneously, the State Department instructed US consulates abroad to deny visas to applicants suspected of “birth tourism,” reinforcing a sharp policy pivot.

In light of these developments, Canada should be wary. It may see an increase in birth tourism as expectant mothers look for alternative destinations where their children can acquire citizenship by birth.

Canadian immigration law does not prevent women from entering the country on a visitor visa to give birth. The Immigration and Refugee Protection Act (IRPA) and the associated regulations do not include any provisions that allow immigration officials or Canada Border Services officers to deny visas or entry based on pregnancy. Section 22 of the IRPA, which deals with temporary residents, could be amended. However, making changes to regulations or policy would be difficult and could lead to inconsistent decisions and a flurry of litigation. For example, adding questions about pregnancy to visa application forms or allowing officers to request pregnancy tests in certain high-risk cases could result in legal challenges on the grounds of privacy and discrimination.

In a 2019 Angus Reid Institute survey, 64 per cent of Canadians said they would support changing the law to stop granting citizenship to babies born in Canada to parents who are only on tourist visas. One of the most effective solutions would be to amend Section 3(1)(a) of the Citizenship Act, making it mandatory that at least one parent be a Canadian citizen or permanent resident for a child born in Canada to automatically receive citizenship. Such a model would align with citizenship legislation in countries like the UK, Germany, and Australia, where jus soli is conditional on parental status. Making this change would close the current loophole that allows birth tourism, without placing additional pressure on visa officers or requiring new restrictions on tourist visas. It would retain Canada’s inclusive citizenship framework while aligning with practices in other democratic nations.

Canada currently lacks a proper and consistent system for collecting data on non-resident births. This gap poses challenges in understanding the scale and impact of birth tourism. Since health care is under provincial jurisdiction, the responsibility for tracking and managing such data falls primarily on the provinces. However, there is no national framework or requirement for provinces or hospitals to report the number of births by non-residents, leading to fragmented and incomplete information across the country. One notable example is BC’s Richmond Hospital, which has become a well-known birth tourism destination. In the 2017–18 fiscal year alone, 22 per cent of all births at Richmond Hospital were to non-resident mothers. These births generated approximately $6.2 million in maternity fees, out of which $1.1 million remained unpaid. This example highlights not only the prevalence of the practice but also the financial burden it places on the provincial health care programs. To better address the issue, provinces should implement more robust data collection practices. Information should include the mother’s residency or visa status, the total cost of care provided, payment outcomes (including outstanding balances), and any necessary medical follow-ups.

Reliable and transparent data is essential for policymakers to accurately assess the scope of birth tourism and develop effective responses. Provinces should strengthen data collection practices and consider introducing policies that require security deposits or proof of adequate medical insurance coverage for expectant mothers who are not covered by provincial healthcare plans.

Canada does not currently record the immigration or residency status of parents on birth certificates, making it difficult to determine how many children are born to non-resident or temporary resident parents. Including this information at the time of birth registration would significantly improve data accuracy and support more informed policy decisions. By improving data collection, increasing transparency, and adopting preventive financial safeguards, provinces can more effectively manage the challenges posed by birth tourism, and the federal government can implement legislative reforms to deal with the problem.

Sergio R. Karas, principal of Karas Immigration Law Professional Corporation, is a certified specialist in Canadian citizenship and immigration law by the Law Society of Ontario. He is co-chair of the ABA International Law Section Immigration and Naturalization Committee, past chair of the Ontario Bar Association Citizenship and Immigration Section, past chair of the International Bar Association Immigration and Nationality Committee, and a fellow of the American Bar Foundation. He can be reached at [email protected]. The author is grateful for the contribution to this article by Jhanvi Katariya, student-at-law.