Canadian Governance Policy Trends: The Carney Pivot

The Carney government has pivoted sharply to economic issues such as trade and fiscal responsibility.

These commitments require a major retooling of government priorities and effort, some of which is already in legislation such as Bill C-5, the One Canadian Economy Act. The Carney government will need to manage the raised expectations generated by the work of the Trudeau government on Indigenous and cultural issues to ensure its economic policies gain the necessary support.

Given the uneven impact of economic and trade policies across the country, Carney will need to manage relations with provinces and territories. The need for provincial endorsement of international trade agreements, a nearly unique Canadian feature, will challenge federal negotiating powers. Any provincial demands for compensatory policies will put pressure on Ottawa’s commitment to fiscal probity.