Carney says diversifying trade relationships with Europe, Asia among key fall objectives

Prime Minister Mark Carney says the federal government will launch a new trade diversification strategy this fall to "strengthen existing relationships and open new markets for Canadian businesses, particularly in Asia."

Carney, who was addressing the Liberal caucus in Edmonton on Wednesday, outlined the government's seven priorities for this fall, which span economic security, reducing the cost of living, building affordable housing, protecting Canadian sovereignty and ensuring sustainable immigration rates.

In his speech, he emphasized that the global economy is not undergoing a transition but "a rupture," as the U.S. fundamentally transforms all of its trading relationships.

"We are over the shock, but we should never forget the lessons: we have to look out for ourselves, and we have to take care of each other," Carney said, noting that Canada would build a new economic and security relationship with the U.S. while diversifying its trade relationships.

Work on implementing Canada's recent deal with the European Union will start this month, after the announcement of Canada's new special envoy, Carney said.

The PMO did not provide details about who the envoy would be or what the position would look like.

Canada has been making efforts to shore up ties with Europe as it reassesses its relationship with the U.S. in the middle of a trade war.

In June, Carney signed a strategic defence and security partnership with the European Union, opening the door for Canadian companies to participate in the $1.25-trillion ReArm Europe program.

The prime minister travelled to Germany, Ukraine and Poland in August to meet with key business and political leaders in the hope of advancing opportunities for co-operation in areas, including trade, energy, critical minerals, defence and artificial intelligence.

WATCH | Carney says U.S. is transforming all of its trading relationships:

Speaking from the Liberal caucus retreat in Edmonton on Wednesday, Prime Minister Mark Carney says the United States has fundamentally transformed all of its trading relationships, causing a 'rupture,' not a transition, in the global economy.

Carney reiterated that affordable housing remains one of the government's objectives this fall.

He said the government will launch its federal housing program, Build Canada Homes, next week. It aims to double the pace of housing construction over the next decade.

The entity would act as a developer overseeing the construction of affordable housing in Canada and provide tens of billions in financing for new affordable housing projects across the country.

"We won't just build houses, we will build housing that is compassionate, competitive, climate friendly and above all, that is Canadian," Carney said.

The government's new "climate competitiveness" strategy will also be released this fall, he said, adding that addressing climate change is an "economic imperative."

Canada's new industrial defence strategy is forthcoming, Carney said.

The government committed to meeting the NATO benchmark target of two per cent of the country's gross domestic product by the end of the current fiscal year in March.

"Our renewed commitment to defence will create tens of thousands more fulfilling, high-paying careers for Canadian workers," Carney said.

The Liberal public safety plan announced in April includes measures to broaden support for police, Canada Border Services Agency (CBSA) officers and other first responders.

Carney said the government would also propose legislation to make bail laws stricter for home invasions, car thefts and gang crime.

"When our laws repeatedly fail to protect those basic rights, we need new laws," he said. "This fall, we will deliver them."

The prime minister reiterated that the government is aiming to return Canada's immigration rates to "sustainable levels."

In March 2024, the Trudeau government stated its plans to reduce the rate of temporary residents from 6.2 per cent to five per cent by 2027.

Wednesday, Carney said his government aims to reduce the total number of temporary foreign workers and international students to less than five per cent of Canada's population by the end of 2027, down from its peak of 7.3 per cent in 2024.

"The temporary foreign worker program must have a focused approach that targets strategic sectors and regions," Carney said, adding that Canadians are generous people.

"We are welcoming people to our country. We have to make sure we have the capacity to fulfil that welcome," he said.

In closing, Carney noted that the fall budget will "spend less" to give Canadians the ability to invest in initiatives that will catalyze "enormous private capital" and "unleash Canada's economic potential to be the strongest economy in the G7."

He referenced Treasury Board President Shafqat Ali announcing on Monday that the federal government had identified nearly 500 ways departments are cutting red tape to make themselves more efficient.

"In the election, we made a clear commitment to Canadians to bring a new fiscal discipline to the federal budget," Carney said. "It will require tough choices in tough times for a better future."