On Monday, our President and CEO, Candace Laing, joined Prime Minister Carney at the announcement of "Securing Canada" in Toronto.

“Today’s announcement of meeting our 2% target this fiscal year is a welcome change in approach, one that suggests the Government of Canada is poised to chart a new path for our industrial defence base.” 

POLICY MATTERS

The work continues. Even after Canada hands over the B7 and G7 Chair roles to France, we must keep building our economic security and sovereignty — not only to create a better life for all Canadians but to help our international partners do the same in their communities.

In this edition of Policy Matters, we discuss Canada’s role in shaping the next chapter of the global economy. 

REPORT

In this new report from the Future of Business Centre, Fellows Eric Miller and Heather West argue that strong encryption and effective cyber security have become strategic imperatives for Canada.

They dissect what Canada’s current laws have to say about cybercrime and legal access, the implications of the fracturing of the Five Eyes, and aligning privacy and security efforts with tech sector growth.  

REPORT

Canada’s economic prosperity depends on all forms of energy. A mix of conventional and clean sources is essential if we are to ensure an affordable, secure and sustainable supply for Canadians and our global partners, today and tomorrow.

In this new report, the Energy Security Council outlines an energy vision for Canada’s new government. 

CHAMBER CHARTS 

New analysis from our Business Data Lab shows that Canada’s productivity gap with the U.S. has cost us an estimated $31 trillion CAD in lost output and public revenue from 1980 to 2030.  

PODCAST

In this episode of Canada’s Economy, Explained, host Marwa Abdou explores Canada’s pivotal role as G7 and B7 president in 2025 and the country’s opportunity to lead on AI adoption and sustainability.

Joining her are Tom Mosseau and Franco Amalfi from Capgemini Canada — a global consulting and technology firm — who break down the challenges and possibilities facing Canadian businesses.

 ICYMI: Read the blog for Episode 8: The Case for Canada 

COMMENTARY

The Bank of Canada kept interest rates steady at 2.75%, balancing cautious optimism about Q1 growth with ongoing inflation worries.  

Our Principal Economist, Andrew DiCapua, thinks the Bank should have eased sooner. Holding rates now could slow growth and leaves Canada vulnerable to the impact of U.S. tariffs.

COMMENTARY

Canadian exports plunged nearly 11% in April, with U.S. tariffs wiping out $15 billion in trade since January. This pushed Canada’s trade deficit to a record $7.1 billion. 

Our Principal Economist,Andrew DiCapua, says this sharp decline confirms tariff impacts and signals a tough second quarter ahead, increasing pressure on the Bank of Canada. 

President Trump’s One Big Beautiful Bill Act, a major U.S. budget reconciliation bill currently in the U.S. Senate, features a provision that poses a major risk for Canada. 

Section 899 of the Bill, entitled Enforcement of Remedies Against Unfair Foreign Taxes, allows for an increase in federal income tax and withholding tax rates on investors that are from a “discriminatory country,” which this Bill defines as a country that imposes unfair foreign taxes. Per the Bill, digital services taxes (DST) constitute discriminatory behaviour. 

Canada’s DST, which became law in June 2024, is a 3% tax on Canadian‑source digital services revenue earned by large domestic and foreign taxpayers. With the June 30 deadline for companies to make the first payment of Canada’s DST looming, it is very likely that Canada would be targeted by Section 899 of the Bill if it passes in its current form. While many details remain in flux, experts estimate that this provision could potentially cost Canadian investors billions. 

At such a sensitive economic time, carrying on with Canada's DST risks further damaging our trade and investment relationship with the United States, potentially inviting retaliatory tariffs.  

You can read more about the Canadian Chamber’s priorities related to Canada’s DST here

STATEMENT

We welcome the introduction of Bill C-5, An Act to Enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act. 

“Businesses have been ready for true, free trade within Canada for a long time,” said Matthew Holmes, Chief of Policy, in a statement last week. “While passing this bill would not fully unlock internal trade, as many of the remaining barriers fall under provincial jurisdiction and will require leadership and collaboration from Premiers, it’s a good start toward reducing the self-imposed barriers that act as a 21% tariff.” 

OP-ED

“In many ways, what happens in 2025 could shape the trajectory of the world for the next 50-plus years.”  

In a recent op-ed for the Financial Post, Matthew Holmes, our Chief of Public Policy, argues that without strong, coordinated leadership from the G7, we risk slipping into a dangerous “G-zero” world — a world with no effective global governance. 

EVENT

We’re getting closer to our most anticipated summer gathering! Join us on Saturday, July 5, at the Calgary Stampede for an afternoon of networking, insights and Stampede spirit. 

The event is free to attend, just let us know which organization you will be representing! 

The Rebuild Ukraine Toolkit for Canadian Businesses, developed by the Canada-Ukraine Chamber of Commerce with support from Export Development Canada, is your go-to resource for navigating opportunities in Ukraine’s reconstruction and modernization.

The toolkit offers practical guidance on market entry, public procurement, legal frameworks, financing tools and detailed information on the Canada-Ukraine Free Trade Agreement (CUFTA). It also features real-time procurement listings, investment projects and comprehensive guides to help position your business for long-term success in Ukraine’s recovery.   

Alberta’s population has surpassed five million, growing faster than any other province and even outpacing all 50 U.S. states last year. This rapid growth is boosting the economy but also putting pressure on housing, infrastructure and services. 

Read more in this week’s featured blog post.

As Canada races toward a net-zero future, Waterpower stands out as a proven, homegrown solution that’s clean, reliable and built to last. With untapped potential and growing Indigenous partnerships, it’s not just about energy — it’s about economic resilience and long-term opportunity.  

Read more in this week’s featured blog post.