In this week’s edition, Prime Minister Mark Carney’s government takes centre stage with the tabling of the One Canadian Economy Act—a sweeping proposal to eliminate internal trade barriers and fast-track nation-building projects. As unemployment ticks upward and new health reports raise concern, the Liberals also rolled out a $9 billion defence package to meet NATO targets early and continued high-level diplomacy ahead of the G7 Summit.
Liberals Target Internal Trade Barriers with One Canadian Economy Act Amid Rising Unemployment
The Liberal government tabled Bill C-5, also known as the One Canadian Economy Act, aiming to break down Canada’s longstanding internal trade barriers and accelerate major infrastructure and energy projects. The proposed legislation pledged to accelerate major nation-building projects through evaluation. Projects must strengthen Canada’s autonomy, resilience, and security, provide economic benefits, have high rates of successful execution, be aligned with the interests of the Indigenous Peoples, and contribute to clean growth with respect to climate change.
Minister of Finance François-Philippe Champagne stated that the federal government is targeting to build the strongest economy through a strong and united Canadian economy. Minister for Canada-US Trade, Intergovernmental Affairs Dominic Leblanc also assured that their team, along with the Prime Minister, are focused on building and fast-tracking big projects to boost the economy.
In terms of labour, Carney stated that provinces will retain their power over projects and will not force areas that refuse to do so. The legislation would create a framework recognizing certifications and licences issued by one province or territory across all federal jurisdictions, making it easier for workers to transition without redundant credentials.
The Canadian Chamber of Commerce applauded the introduction of the legislation, citing that businesses are looking forward to the plans of the federal government. Executive Vice President Matthew Holmes emphasized that after months of uncertainty and stalled investment decisions, there is now an urgent need to kickstart major projects that businesses, investors and Indigenous communities can all be confident in.
Meanwhile, the Green Party warned that the proposed federal bill is far more dangerous than described. Party leader Elizabeth May claims that Bill C-5 effectively grants the Cabinet a “blank cheque” to fast‑track projects. She described it as a “political playbook,” giving ministers the ability to override planning timelines and customize rules project-by-project.
The bill comes amid mounting job losses and economic pressure driven by U.S. tariffs and industry stagnation. Canada’s unemployment rate rose to 7% in May 2025—its highest since 2016, excluding the pandemic years, with 1,574,600 people unemployed and little overall employment growth. The trade conflict with the U.S. has intensified economic pressures, especially on export-related industries.
Youth unemployment across Canada reached 14.2%, while unemployment for men aged 25 and over rose to 6.1%, and for women slightly declined to 5.5%. Student unemployment is a particular concern, with over 20% of returning students unemployed, the highest rate since 1999 outside the pandemic years. The average duration of unemployment increased to 21.8 weeks in May from 18.4 weeks a year earlier, indicating it is now harder for Canadians to find work.
Federal Conservative Shadow Minister Garnett Genuis blamed Liberal policies for the rising unemployment and called for removing barriers to work, tax reductions, and boosting business growth.
Carney Names Michael Sabia as New Clerk
On the diplomatic front, Prime Minister Mark Carney announced that Michael Sabia will become Clerk of the Privy Council and Secretary to the Cabinet effective July 7, 2025, bringing decades of public and private sector leadership experience. He also thanked outgoing Clerk John Hannaford for his years of service and confirmed Hannaford would be appointed to the King’s Privy Council for Canada prior to his retirement.
Carney also confirmed that U.K. Prime Minister Sir Keir Starmer will visit Ottawa from June 14 to 15, 2025, to strengthen economic and security ties, with further discussions planned at the 2025 G7 Leaders’ Summit in Kananaskis, Alberta.
He also spoke with Brazilian President Luiz Inácio Lula da Silva to discuss expanding trade, energy security, and cooperation on critical minerals, emphasizing shared environmental and economic values ahead of COP30 and the G7 Summit.
Carney then spoke with South African President Cyril Ramaphosa to advance G7-G20 priorities, including energy, AI, critical minerals, and wildfire response and thanked South Africa for its firefighting support.
However, Carney drew criticism over G7 guest invitations extended to Indian Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman. Liberal MP Sukh Dhaliwal met with Carney to express concerns over the invitation of Indian Prime Minister Narendra Modi to the G7 summit, citing human rights issues and the 2023 killing of Hardeep Singh Nijjar. Other MPs and the NDP also criticized the decision, while Carney defended the move as part of Canada’s G7 leadership, emphasizing the need for continued law enforcement dialogue with India.
An editorial from The Hill Times criticized Carney’s decision to invite the Saudi Crown Prince and Indian Prime Minister to the G7 summit, arguing it prioritizes economic strategy over human rights concerns.
In the Senate, Senator Mary Coyle urged the federal government to promote education as a pillar of peace and security at the upcoming G7 Summit in Kananaskis.
Canada Hits NATO Target with $9B Defence Boost
In a landmark announcement, Carney and Defence Minister David McGuinty unveiled a $9 billion boost to defence spending for 2025–26, bringing Canada’s military spending to 2% of GDP, with investments in recruitment, equipment, digital infrastructure, and partnerships to bolster security and resilience. Carney confirmed that Canada will reach NATO’s 2% defence spending target this year, five years ahead of the previous 2030 schedule, as part of efforts to strengthen sovereignty and alliances.
The plan includes major investments to modernize Canada’s military equipment—such as submarines, ships, aircraft, artillery, and drones—while prioritizing the use of Canadian steel, aluminum, and labour to rebuild domestic industrial capacity.
Total spending will rise to approximately $62.5 billion, with additional support for a national defence industrial strategy and the integration of Coast Guard spending into NATO operations, reflecting rising global threats and questions about U.S. reliability.
The policy shift drew broad political support. Conservative Leader Pierre Poilievre announced his party’s support for the defence spending increase, committing to NATO’s 2% target while criticizing the Liberals for weakening the military and calling for a full federal budget. He outlined plans to strengthen Arctic infrastructure, improve recruitment, and foster a “warrior culture,” while expressing doubt over NATO members reaching a 5% spending goal.
Meanwhile, the NDP condemned the plan for failing to consult Inuit and Arctic communities and warned that increased military spending could undercut peace programs and essential public services.
Reports Urge Action on Grief, Men’s Health, and Youth Mental Wellness
As federal politics focused on economics and global strategy, new reports spotlighted the urgent state of Canadians’ mental health and well-being. The Canadian Grief Alliance has released a national action plan calling on the federal government to address Canada’s growing grief crisis, citing a lack of services, low grief literacy, and disproportionate impacts on marginalized communities. Funded by Health Canada, the report recommends public education campaigns, culturally responsive care, professional training, and the creation of a Canadian Centre for Grief.
A new report by Movember revealed that 44% of Canadian men die prematurely from largely preventable causes, with suicide and opioid-related deaths disproportionately affecting them. The report urged Ottawa to adopt a National Men’s Health Strategy to address gender-specific health challenges and disparities, particularly among Indigenous and marginalized male populations.
As we push forward with bold economic reforms and strategic alliances at home and abroad, the coming weeks will test how quickly these promises can turn into progress. With Parliament in motion and the G7 Summit on the horizon, all eyes remain on whether this wave of legislation and diplomacy can deliver real results.
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