Prime Minister Carney pledged major reforms by Canada Day. What did he achieve on trade, taxes, defence, and red tape?
A Prime Minister’s Ambitious Timeline
Prime Minister Mark Carney entered office in March with bold promises: to deliver swift reforms by Canada Day. After securing a majority Liberal government, Carney had just over 60 days to act on commitments ranging from internal trade to tax relief. With the July 1 deadline here, Canadians are assessing how much progress has truly been made.
Internal Free Trade Legislation Tabled
Carney’s pledge to “unleash free trade in Canada by Canada Day” was central to his campaign. His government passed Bill C-5, eliminating all federal barriers to interprovincial trade and labour mobility. This move targets the long-standing issue of internal trade barriers, which some economists argue cost the economy billions annually. However, since most barriers fall under provincial jurisdiction, real results will depend on cooperation from premiers. While some provinces, including Alberta and Ontario, have taken steps to reduce restrictions, a truly barrier-free Canada remains aspirational.
Tax Cuts in Motion, But Not Finalized
Carney promised swift tax relief, including cancelling the carbon tax, cutting income taxes, and removing GST for first-time homebuyers. The carbon price was scrapped April 1 via prime ministerial directive. Meanwhile, tax cuts and GST relief were bundled in Bill C-4. Although key measures have been adopted through a ways and means motion, the bill itself has not yet passed Parliament, leaving full implementation pending.
Strategic Defence Shift Underway
Responding to global security concerns, Carney sought deeper defence ties with Europe. On June 23, his government signed a strategic defence and security partnership with the EU. This agreement paves the way for Canada to join ReArm Europe and the SAFE loan program, reducing reliance on U.S. defence suppliers. While it marks a significant shift in strategy, participation in ReArm Europe remains at a framework stage.
Red Tape Review Still on the Launchpad
Carney’s platform committed to cutting red tape, requiring federal departments to review outdated or duplicative regulations. The Treasury Board is set to oversee this effort. While the government says preparations are underway, the formal review process has not yet started. The timeline remains ambiguous, with no clear indication when the 60-day review period will begin.
Next Steps for Carney’s Agenda
As the Canada Day deadline passes, Carney faces pressing tasks. A trade deal with the U.S. is slated for negotiation within 30 days. Critical bills—on tax cuts, border security, cybersecurity, and citizenship rights—are still making their way through Parliament. While Carney delivered on some promises, many remain works in progress, setting the stage for a politically charged summer.
