Parliament returned from its summer break Monday with new MPs taking their seats, several ridings still vacant and the Liberal government unveiling major economic legislation aimed at accelerating infrastructure development as Canada faces continued trade tensions with the United States.
Prime Minister Mark Carney’s government introduced Bill C-39, the Building Canada Strong Act, which the Liberals say would speed up approvals for major projects. The legislation follows Carney’s recent international investment summit, where the government sought billions of dollars in investment for projects including data centres, ports, airports and energy infrastructure. The bill would also make changes to the Canada Labour Code, prompting concerns from union leaders about potential effects on the right to strike. Labour Minister Patty Hajdu rejected those concerns.
The government has framed the legislation as part of a broader effort to strengthen the Canadian economy and reduce its dependence on the United States by expanding trade and investment relationships with Europe and Asia. Finance Minister François-Philippe Champagne also introduced legislation Monday to extend the excise tax break on fuel, a measure the government had announced earlier this month.
Affordability quickly emerged as another major issue as question period resumed. Conservative Leader Pierre Poilievre accused the government of contributing to inflation and rising grocery costs, while Carney argued that international conflicts — including the Canada-U.S. trade dispute, the U.S.-Iran war and Russia’s war in Ukraine — are putting additional pressure on fuel and food prices. Carney pointed to the government’s groceries and essentials benefit as part of its response to higher living costs.
The composition of the House has also changed considerably since MPs left Ottawa in June. Nine MPs have stepped down since the summer recess began. Three resulting byelections have already been held, with the Liberals winning all three, including seats represented by new MPs Braeden Caley in North Vancouver-Capilano, Tanveer Shahnawaz in Beaches-East York and Daniel Gobeil in Chicoutimi-Le Fjord. Six seats remain vacant and will require byelections in the coming months.
Canada-U.S. relations are expected to remain a central issue throughout the fall sitting. Trade negotiations broke down in August, followed by additional U.S. tariffs and Canadian counter-tariffs. U.S. President Donald Trump has also threatened further tariffs on steel and automobiles if the two countries fail to reach an agreement by the end of the year.
Against that backdrop, Carney has stepped up efforts to deepen Canada’s economic and diplomatic relationships beyond the United States. During a recent speech to the European Parliament, he welcomed European Commission President Ursula von der Leyen’s proposal to explore a form of associate status for Canada, although the details of such an arrangement remain undefined. Further discussions are expected at a Canada-Europe summit in Montreal in October.
Carney also recently met French President Emmanuel Macron in St-Pierre-Miquelon and Norwegian Prime Minister Jonas Gahr Støre in Ottawa. He is in New York this week for meetings surrounding the United Nations General Assembly, although he is not scheduled to address the assembly. The prime minister is expected to continue an active international travel schedule throughout the fall, with several major summits ahead.
