The next edition of the Ottawa Report is scheduled to be sent at the end of June.
Latest News
Mark Carney Forms More Centrist Cabinet
Mark Carney has created a two-layered cabinet with 29 senior ministers who are to attend all cabinet meetings and 10 secretaries of state or “junior ministers” who are to attend only meetings relevant to their files. This balance allows Carney to maintain a “smaller” cabinet while still rewarding members of Parliament (MPs) in his caucus across the country.
Senior supporters of Carney remain in senior roles. François-Philippe Champagne remains in Finance and adds the role of National Revenue. Given indications that Carney will have a strong hand in finance, a good working relationship between the two men will be crucial.
Carney’s signature campaign commitment to create “One Canadian Economy” where he will “unite, secure, protect, and build” is signalled through several key cabinet appointments, notably the most senior minister in the order of precedence, Dominic Leblanc, receiving the role in his title of “President of King’s Privy Council for Canada and Minister Responsible for Canada-US Trade, Intergovernmental Affairs and One Canadian Economy.” He will be joined in his efforts by Carney leadership rival (and close friend) Chrystia Freeland, who maintains her role at Transport and Internal Trade.
Key ministers relevant to CPWA members:
- Mark Carney (Ontario), Prime Minister
- François-Philippe Champagne (Quebec), Minister of Finance and National Revenue
- Gregor Robertson (British Columbia), Minister of Housing and Infrastructure
- Eleanor Olszewski (Alberta), Minister of Emergency Management and Community Resilience
- Dominic Leblanc (New Brunswick), Minister Responsible for Canada-US Trade, Intergovernmental Affairs and One Canadian Economy
- Chrystia Freeland (Ontario), Minister of Transport and Internal Trade
- Julie Dabrusin (Ontario), Minister of Environment and Climate Change
- Buckley Belanger (Saskatchewan), Secretary of State for Rural Development
Canada-US Relations Update
On May 6, 2025, Prime Minister Carney met with US President Donald Trump at the White House for a bilateral discussion that signaled a new tone in Canada-US relations. President Trump reiterated that current tariffs on Canadian goods—particularly in automotive, aluminum, and steel—are not being lifted. Carney underscored that he will continue to work toward removing tariffs on Canadian goods. Both leaders referenced the Canada-United States-Mexico Agreement (CUSMA) as the basis for broader negotiations. They agreed that negotiations will take time and require ongoing engagement, as they are looking for a solution beneficial to both countries. Carney emphasized that he will not accept a deal unless it strengthens Canada’s strategic position.
Western Premiers Discuss Emergency Preparedness
Western premiers met in Yellowknife to discuss shared priorities and collaborate on evolving issues such as economic corridors, energy security, arctic sovereignty and security, public safety, emergency preparedness, and housing. Considering the threat wildfires pose to western Canada, western premiers discussed the importance of having a proactive approach to disaster management, focusing on long term preparedness, climate change adaptation and mitigation, and enhancing community resilience through planning, coordination, and information sharing during emergencies. From a federal government context, the premiers acknowledged the federal Disaster Financial Assistance Arrangements (DFAA) as a critical pillar in helping affected communities recover from disaster and related events in a timely manner. Premiers expressed concern on how the new federal DFFA guidelines download further cost on the provinces and territories, and called on the federal government to implement adequate mitigation and adaption funding programs to assist the provinces and territories build protection for communities.
Parliamentary Business
Speech from the Throne Signals Ambitious New Agenda
Prime Minister Carney signalled his ambitious plans for Canada by inviting King Charles III to deliver the 2025 Speech from the Throne. The king’s presence and his speech confirm the government’s intention to entrench Canadian political sovereignty and independence from the United States through the pursuit of a generational transformation of Canada’s economy and place in the world, with bold goals for internal trade liberalization, infrastructure and housing, economic sovereignty, and defense.
The king’s speech offers few specifics on timelines, performance metrics, or departmental ownership. The government is delaying a new budget until the fall to give the ministers time to do the homework outlined in the prime minister’s mandate letter: build an implementation plan for the prime minister’s goals. The government’s success will depend heavily on disciplined and expedited execution, coherent direction and coordination from the center, and top-level performance from a team with many ministers new to their files or to Cabinet altogether. There will be no room for error or imprecision. The world is realigning as the United States steps back from its role as world policeman. Stumbling will leave Canada with few real friends and little support.
As for how this impacts advocacy efforts, it is clear that ministers must quickly turn their attention to implementing an ambitious agenda within the constraints of a minority government. This creates a critical window that closes in late summer or early fall for stakeholders to engage directly and influence how the priorities outlined today are understood and put into action. These crucial months will prepare the Carney government so it can avoid stumbling out of the gate and step into their plan to reform the country with assurance and force.
The king’s speech is organized around six thematic sections, each continuing the theme of “building” that we have seen framing the economic messaging of governments in Canada and the United States since COVID (e.g., “Build Back Better”):
- Building new relationships with the United States and the world
- Building a more affordable Canada
- Building a stronger Canada
- Building a safer and more secure Canada
- Building a united Canada
- Building Canada Strong by spending less and investing more
The rubrics reorganize the priorities of the prime minister’s mandate letter, expressing the overlapping themes of economic security, affordability, sovereignty, reconciliation, and government modernization. The overarching motif of “building” underscores the government’s focus on tangible outcomes and large-scale transformation, but also echoes a different view of the economic messaging of President Trump, who focuses on the wealth that he wants to bring to the United States through his various America First economic initiatives.
The king’s speech places Canada’s relationship with the United States front and center, with the government aiming to “define a new economic and security relationship” rooted in mutual respect and common interests. This language signals Prime Minister Carney’s intention to differentiate his approach from earlier efforts at appeasement, while responding directly to the growing unpredictability of US foreign policy under President Trump.
At the same time, the government reiterates its desire to deepen ties with other like-minded allies and trading partners. Canada’s hosting of the G7 Summit in June will offer a platform to reassert its international leadership and promote values-based trade, democratic cooperation, and economic resilience.
We can expect that the evolving US-Canada dynamic will remain a dominant theme as the government implements its agenda. While details are scarce, the king’s speech underscores the government’s intention to lead amid rising global volatility, with implications for trade and defense policy that will continue to unfold in the months ahead.
The centerpiece of the king’s speech is the goal of building the strongest economy in the G7 by removing internal trade barriers, unlocking infrastructure, and streamlining project approvals. A bill to eliminate remaining federal trade and labor mobility barriers will be introduced by July 1. A new Major Federal Project Office will cut federal approval times to two years, and “one project, one review” cooperation agreements will be pursued with provinces and Indigenous partners within six months.
The government also says it will double the rate of home building through a series of measures aimed at boosting supply, using Canadian technology, skilled workers, and lumber. The creation of a new agency, Build Canada Homes, is touted as a measure that will deliver affordable homes, notably by investing in the growth of prefabricated and modular housing.
Federal Funding Awarded
Canada and Nova Scotia finalize agreement to build more homes
The Government of Canada and Nova Scotia have finalized a 10-year agreement under the Canada Housing Infrastructure Fund (CHIF). Nova Scotia will receive $170.9 million to invest in infrastructure such as drinking water, wastewater, stormwater, and solid waste systems, all of which are essential to unlocking sustainable, long term housing supply. Nova Scotia will extend the freeze on development charges announced on November 10, 2024, to reduce development charges to ensure that costs are brought down for home builders.
