4.02.2026

"Carney's Cabinet Retreat: Navigating Economic Challenges"

QUÉBEC — Prime Minister Mark Carney is gathering his cabinet in Quebec City today for two days of meetings focused on the economy, affordability and security

QUEBEC — Prime Minister Mark Carney is convening his cabinet in Quebec City today for a two-day retreat centered around the economy, affordability, and security. This meeting is taking place just after Carney's return from a nine-day overseas trip aimed at attracting new investment to Canada. The timing is significant as Parliament is set to resume on Monday following its recess since December 11.

The cabinet retreat is seen as an opportunity for the government to address various internal issues, including interprovincial trade and major projects. However, much like discussions at the World Economic Forum in Switzerland, it is anticipated that topics surrounding U.S. President Donald Trump, tariffs, and Greenland will dominate the talks. Fen Osler Hampson, an international affairs professor at Carleton University, emphasized the importance of having a clear game plan to prepare Canadians for a challenging year ahead with potential tariff increases and looming negotiations related to the Canada-United States-Mexico Agreement (CUSMA).

Carney's recent speech at the World Economic Forum has been described positively by various international observers, but it did not resonate well with Trump, who asserted that Canada should be "grateful" to the United States. In his address, Trump reminded Carney of the U.S.'s influence on Canada's existence, underscoring the complexities of trade relations between the neighboring countries.

Jennifer Welsh, from McGill University's Max Bell School of Public Policy, anticipates discussions on effectively navigating the renegotiation of CUSMA. The ministers will also need to address strategies for diversifying Canada’s trade relationships and fostering economic growth. Key questions will include identifying priorities in international partnerships and how to pursue them successfully.

During Carney's trip abroad, he successfully negotiated a deal with China to lower agricultural tariffs in exchange for granting market access to Chinese electric vehicles. Additionally, he secured agreements on defense, trade, and foreign investment with Qatar. The Prime Minister's Office released a statement indicating that Carney and his cabinet aim to diversify international partnerships while strengthening domestic frameworks to enhance stability, security, and prosperity for Canadians.

Osler Hampson highlighted the urgent need for discussions around accelerating major projects, stating that Canada must improve its infrastructure, including ports, railways, and pipelines, to ensure economic viability and job security for displaced workers.

As Parliament prepares to reconvene, Carney's Liberal government is currently two seats short of a majority due to recent political shifts, including the departure of Toronto MP Chrystia Freeland. The government will seek to pass legislation that implements elements of the budget, which was approved in November and now requires further scrutiny in committee before final votes in both the House of Commons and the Senate.

In the fall, the Liberal government introduced three significant justice bills that are pending approval in Parliament. These bills include new offences related to intimidation and obstruction (Bill C-9), measures to tighten bail regulations and introduce consecutive sentencing for specific crimes (Bill C-14), and reinstating mandatory minimum imprisonment penalties (Bill C-16).

Colin Robertson, a former Canadian diplomat, stressed that the cabinet's agenda should prioritize legislative progress in Parliament. He noted that while Carney has made a number of proposals, criticism is being directed at the government's ability to follow through and implement them. The retreat in Quebec also holds strategic importance, as the province is considered a key battleground for electoral success, prompting Carney to reinforce his ties with Quebec ministers.