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Mark Carney’s Leadership Win Mirrors Past Liberal Failures

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From the Frontier Centre for Public Policy

By Lee Harding

The Liberal Party has crowned Mark Carney leader, but his path to victory is riddled with obstacles

The Liberal Party of Canada has selected a non-MP to become prime minister, but precedent suggests he won’t last long. Mark Carney represents the worst aspects of both John Turner’s and Michael Ignatieff’s political rises and appears destined for the same electoral futility.

When Pierre Trudeau stepped down as Liberal leader in 1984 after more than 15 years as prime minister, he left behind a parting gift: over 200 Liberal patronage appointments. His successor, John Turner, agreed to another 70. These appointments became a burden, weighing down Turner’s leadership before it had even begun. Like Carney, Turner was not a sitting MP when he became leader. Forced to call a snap election, he watched the Progressive Conservatives secure the first of two successive majorities.

Now, history is repeating itself. Justin Trudeau’s cabinet made 70 appointments in its final days, including 12 judges. That number doesn’t include the 10 senators he appointed while Parliament was prorogued—nearly 10 per cent of the 105-seat chamber. Like Turner, Carney must navigate a leadership legacy tainted by patronage and an unpopular outgoing prime minister.

But does Carney’s experience, reputation, and distance from Trudeau offer him a fresh start? It seems unlikely. Unlike Turner, Carney has never held elected office.

Turner at least had a political track record. As a cabinet minister under two prime ministers, he handled high-profile Justice and Finance portfolios. He also benefited from a nine-year break from politics, distancing himself from the unpopular Trudeau. None of it mattered. Turner still lost.

Liberals hope Carney can ride a wave of popularity after a dominant leadership victory, securing 85 per cent support. But what did he really win? A former central banker, he climbed atop a heap of ruins.

His victory over Chrystia Freeland, Karina Gould, and former MP Frank Baylis was less a competitive race and more a coronation. Freeland carried the baggage of Trudeau’s policies, while the other two lacked national recognition. Carney, the only contender without direct ties to Trudeau’s government, was the default choice. The Liberal Party is adrift, and he simply took the helm.

But winning an uncontested leadership race is no guarantee of electoral success. Turner’s rise in 1984 was far more hard-fought—he overcame political heavyweights, including Jean Chrétien and four other cabinet ministers, in a real contest for the party’s future. Yet despite his credentials and broad support within the party, Canadians still rejected him.

And unlike Turner, Carney’s leadership victory raises serious legitimacy concerns. Liberal leadership races allow votes from permanent residents (non-citizens) and minors aged 14 to 17—groups that have no say in a general election. Even more troubling, of the 400,000 votes cast, only 147,000 were verified. Carney received 126,000 of those votes, but nearly two-thirds of ballots were rejected. Had those votes gone to any of his opponents, Carney’s win would have been far from certain.

A Rebel News petition calling for Elections Canada, CSIS, and the RCMP to audit the leadership vote is already circulating. While skepticism over the process is reasonable, it’s doubtful that meaningful answers will emerge.

Beyond legitimacy issues, Carney shares another unfortunate trait with a failed Liberal leader: Michael Ignatieff.

Ignatieff followed Stéphane Dion, whose push for a carbon tax proved deeply unpopular. The Conservatives quickly branded Ignatieff, a long-time Harvard professor, as an elitist disconnected from ordinary Canadians. Their “He didn’t come back for you” attack ads stuck, and Ignatieff led the Liberals to a historic defeat, falling to third-party status.

Carney faces the same vulnerability. After years in England, he will struggle to shake the image of an out-of-touch globalist. His French, weaker than Ignatieff’s, will also hurt him in Quebec, a province that abandoned the Liberals in 2011 in favour of the NDP.

History suggests Carney’s leadership will pave the way for another Conservative majority government—just as Turner and Ignatieff’s failures did.

Carney’s leadership campaign combines the worst aspects of 1984 and 2011. As an unelected, elitist ex-pat with weak French, he carries a Liberal banner weighed down by both Trudeau’s baggage and the deeply unpopular carbon tax.

A Conservative government with a mandate for reform is increasingly likely. A slimmed-down civil service, reduced regulations, the abolition of the carbon tax, and renewed pipeline construction could all be on the horizon. After nearly a decade of Liberal rule, Canada’s political pendulum seems set to swing back once again.

Lee Harding is Research Fellow for the Frontier Centre for Public Policy.

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Alberta

Why Some Albertans Say Separation Is the Only Way

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From the Frontier Centre for Public Policy

Frustrated. Fed up. Ready for change. That’s how many Albertans feel after years of being sidelined by Ottawa.
In this eye-opening episode, David Leis sits down with Dr. Dennis Modry and Lawyer Jeff Rath—two key voices behind the Alberta Prosperity Project—to talk about the growing push for sovereignty.
Is Alberta better off on its own? Why are more people demanding a referendum? And what would independence really look like—for the economy, Indigenous communities, and Alberta’s place in the world?
We get into everything: Trudeau’s policies, the recent election, the TMX pipeline, Western alienation, and why some say the current system is simply ungovernable. If you think the separation talk is just noise… you’ll want to hear this. (83 minutes)

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Business

Tariffs Get The Blame But It’s Non-Tariff Barriers That Kill Free Trade

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From the Frontier Centre for Public Policy

By Ian Madsen

From telecom ownership limits to convoluted regulations, these hidden obstacles drive up prices, choke innovation, and shield domestic industries from global competition. Canada ranks among the worst offenders. If Ottawa is serious about free trade, it’s time to tackle the red tape, not just the tariffs.

Governments claim to support free trade, but use hidden rules to shut out foreign competition

Tariffs levied by governments on imports are a well-known impediment to trade. They raise costs for consumers and businesses alike. But tariffs are no longer the main obstacle to the elusive goal of “free and fair trade.” A more significant—and often overlooked—threat comes from non-tariff barriers: the behind-the-scenes rules, subsidies and restrictions that quietly block competition from foreign exporters.

These barriers can take many forms, including import licences, quotas, discriminatory regulations and state subsidies. The result is often higher prices, limited product choices and reduced innovation, since foreign competitors are effectively shut out of the market before they can enter.

This hidden protectionism harms both consumers and Canadian firms that rely on imported goods or global supply chains.

To understand the global scope of these barriers, a recent analysis by the Tholos Foundation sheds light on their prevalence and impact. Its 2023 Non-Tariff Barriers Index Report examined the policies, laws and trade practices of 88 countries, representing 96 per cent of the world’s population and GDP.

The results are surprising: the United States, with some of the lowest official tariffs, ranked 65th on non-tariff barriers. Canada, by contrast, ranked fourth.

These barriers are often formalized and tracked under the term “non-tariff measures” by international organizations such as the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization.

UNCTAD notes that while some serve legitimate non-trade objectives like public health or environmental protection, they still raise trade costs through procedural hurdles that can disproportionately affect small exporters or developing nations.

Other barriers include embargoes, import deposits, subsidies to favoured companies, state procurement preferences, technical standards designed to exclude foreign goods, restrictions on foreign investment, discriminatory taxes and forced technology transfers.

Many of these are detailed in a study by the Leibniz Institute for Economic Research at the University of Munich.

Sanctions and politically motivated trade restrictions also fall under this umbrella, complicating efforts to build reliable global trade networks.

Among the most opaque forms of trade distortion is currency manipulation. Countries like Japan have historically used ultra-low interest rates to stimulate growth, which also weakens their currencies.

Others may unintentionally devalue their currency through excessive, debt-financed spending. Regardless of motive, the effect is often the same: foreign goods become more expensive, and domestic exports become artificially competitive.

Canada is no stranger to non-tariff barriers. Labelling laws, technical standards and foreign ownership restrictions, particularly in telecommunications and digital media, are clear examples. Longstanding rules prevent foreign companies from owning Canadian telecom providers, limiting competition in an industry where Canadians already pay among the highest cellphone bills in the world. Similar restrictions on investment in broadcasting and interactive digital media also curtail innovation and investment.

Other nations use these barriers just as liberally. The U.S. has expanded its use of the “national security” exemption to justify restrictions in nearly any industry it sees as threatened. The European Union employs a wide range of non-tariff measures that affect sectors from agriculture to digital services. So while China is frequently criticized for abusing trade rules, it is far from the only offender.

If governments are serious about pursuing freer, fairer global trade, they must confront these less visible but more potent barriers. Tariffs may be declining, but protectionism is alive and well, just hidden behind layers of red tape.

For Canada to remain competitive and protect consumers, we must look beyond tariffs and scrutinize the subtler ways the federal government is restricting trade.

Ian Madsen is a senior policy analyst at the Frontier Centre for Public Policy.

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