Prime Minister Mark Carney is pitching Canada as a “safe harbour” for some of the world’s largest investors in an era of geopolitical and economic uncertainty. Canada is “perfectly situated to build in the new global economic order”, he told more than 100 major investors in Toronto. The prime minister has pledged to bring in C$1tn ($720bn; £530bn) in investments in the next five years as he seeks to reduce Canada’s reliance on the US, and the summit he convened this week is a test of whether he can deliver on promises to strengthen economic resilience. The stakes are high as the trade dispute with the US has pushed Canada to seek deeper economic partnerships with Europe, Asia and the Middle East.
Here are five takeaways from the summit on Tuesday. Carney said over the weekend that the summit was chance for the deep-pocketed financiers attending, representing more than C$120tn of assets, to “come to ‘peer into our shop window'”. More than 160 projects were on offer, from data centres to pipelines and port expansions. Ottawa also dangled a series of new tax incentives, including a “mega deduction” measure in front of potential buyers, and the prime minister underscored government efforts to offer faster approvals for big projects.
Economic analysts have said Canada needs to make significant policy changes to help attract investment, including more competitive tax and regulatory systems, and ensuring a supply of skilled labour. Carney said Ottawa will now offer “predictability” for major proposed projects, with the goals of a one-year review timeline. “If we’re going to say no, a quick no is necessary,” he said. On Monday, he held bilateral meetings with chief executives from major finance companies, like BlackRock’s Larry Fink and Blackstone president Jon Gray.
One of the big announcements to come out of the summit was Carney’s plan to allow private investment in four of Canada’s main airports, in Toronto, Vancouver, Montreal and Calgary. The prime minister said the plan would raise billions of dollars that could be reinvested in transport infrastructure, including smaller regional airports. Many developed countries allow some degree of private investment in airports, but Canada has lagged behind and its airports operate through a not-for-profit governance model. Under Carney’s new proposal, the federal government will retain ownership of the underlying land and assets, but allow private investments into airport operations.
Labour unions have criticised the proposal, saying it will be bad for both workers and passengers. “In the middle of a trade war, handing profitable public infrastructure over to private investors is exactly the wrong move,” said Lily Chang, with the Canadian Labour Congress, in a statement. But Nick Barry-Shaw, of the advocacy group Council of Canadians, said it was “a privatisation summit”. “This isn’t nation building,” he said.
“This is country selling.” On Tuesday, the prime minister’s office said the summit had generated nearly C$500bn in new investments across sectors like critical infrastructure, digital technology, energy and defence. One sector that generated a lot of interest was AI infrastructure projects. Canada has a cold climate, lots of space, and a “clean” energy grid, meaning there is space and capacity to build infrastructure like data centres, said Aidan Gomez, cofounder of AI firm Cohere. Dave McKay, CEO of RBC, one of Canada’s largest banks, told reporters there had been “a consistency of message” between the prime minister and executives, with all “pulling in the same direction”.
UK in talks about joining global defence bank led by Canada Carney’s new love-in with EU has everything to do with Trump Former Goldman Sachs executive and central bank chief Carney’s political career was built in part on a promise to take a tough stance on the US. After trade talks suddenly collapsed last month, the two countries have imposed tit-for-tat tariffs and been embroiled in a war of words. There are no signs formal trade talks will resume anytime soon. On Tuesday, new US tariffs came into effect on a number of Canadian goods while some others were lifted, and bans on goods like alcohol and motorcycles are due to be imposed next week.
But the prime minister made clear the relationship wasn’t over, addressing the American executives in Toronto directly. “To our American friends, let me say this. We will always be neighbours, and Canada will continue to be the US’s most important partner in many key areas,” he said. “After all, even at times of disagreement during our long history, we have always maintained deep ties.” Meanwhile, protestors accused the Carney government of organising a “great Canadian sell-off” of public resources and infrastructure to corporate interests, and hundreds appeared outside the opening night gala at a downtown museum.
“Half the buyers that he has invited here to Toronto are American,” said Kai Nagata, with advocacy group Dogwood, on Monday. “Let’s be clear, every piece of our country that we sell off to American billionaires brings us closer to becoming the 51st state.” The prime minister heads to Europe next, where he will address the EU parliament and begin discussions “to build a unique security and economic alliance” with the bloc. RBC’s McKay said Canada will always be closely aligned with the US simply given its proximity, but there are opportunities overseas. “I think this is an ‘and’.
We have to encourage our governments and encourage our leaders to look at opportunities to diversify trade and grow,” he said. “And I think for Canadians, it’s been so easy to look south and build those supply chains. I think Canadians have woken to opportunities in Asia and in Europe.”
