Sprint Session Ends: Parliament Rises for the Summer

Press Release

June 23, 2025

In a quick four-week parliamentary sitting, Prime Minister Mark Carney has used the spirit of cooperation – and the political capital afforded by his post-election honeymoon – to move quickly on key legislation and platform promises. While Carney seems to be applying the mantra of “move fast and break things” to describe his leadership style in government, the government has some notable wins to showcase during the summer barbeque circuit.

Mending Canada-US Relations

The overriding preoccupation of the new Carney government is the need to end Canada’s trade war with the United States. Carney swiftly reset the relationship with Donald Trump with an amicable White House visit that has largely put to rest the President’s “51st state” rhetoric. Comments by the new US Ambassador to Canada, Pete Hoekstra, indicated that Carney and Trump are engaged in 1-on-1 conversations regarding a new economic and security framework, while also emphasizing American concerns about safe borders.

Carney demonstrated how seriously the government is taking American demands by committing to meet Canada’s NATO 2% GDP target this year – worth $9 billion in new spending – five years ahead of schedule. The government also introduced Bill C-2, “An Act respecting certain measures relating to the security of the border between Canada and the United States…” as its first order of business.

While hopes were raised that Trump and Carney might be able to announce a new trade deal at the G7 in Alberta, it became clear that tariffs remain a stumbling block between them, but they announced a 30-day target to hammer out an agreement.

Notably, Canada held off on further retaliatory tariffs when the US doubled steel and aluminum tariffs earlier this month. Carney announced that he will prevent foreign dumping of cheap steel in Canada from countries that don’t have a free-trade agreement, while waiting until July 21 to set further retaliatory tariffs – after the deadline Carney set with Trump.

Carney is taking some heat for ditching the “Elbows Up” rhetoric that carried him through the election – but is calculating that mending the US trading relationship is more important.

Hosting the G6+1

Carney hosted world leaders in Kananaskis, Alberta last weekend where his efforts to reshape Canada’s global economic and security relationships were on display. As the US recedes from its global leadership role, Carney’s statements from his multilateral and bilateral meetings all stressed the need for greater cooperation on defense and commercial opportunities, taking fuller advantage of the trade deals we have in place with our “G6” allies.

Notably, Carney opted to invite India’s Prime Minister, Narendra Modi, to the G7 despite Canada-India tensions over the alleged extrajudicial murder of a Sikh activist in Canada last year. The decision was controversial in Canada’s politically influential Sikh community, but Carney appears to have decided that a reset in the relationship is required when Canada is looking for new friends abroad, particularly as a regional counterbalance to China. Carney and Modi committed to restore diplomatic relations.

Key Legislation

The Carney government has moved quickly to pass affordability and nation-building measures during the short sitting. Notable pieces of legislation include:

Carney’s “One Canadian Economy” Bill C-5, which passed through the House at breakneck speed with support from the Conservatives, was introduced on June 5th and passed all the House of Commons hurdles by June 20th.
The “Building Canada Act” portion of the bill has received major backlash from many Indigenous and environmental groups who have said the bill was hastily passed without necessary consultations. The legislation essentially circumvents the Impact Assessment process for projects of national interest, committing to a two-year approval window. Premiers roundly supported the legislation at a First Ministers’ conference and have submitted lists of projects to the federal government for consideration. Interprovincial transmission, new port infrastructure, and the Pathways CCUS project are among the projects that may be fast-tracked.
The “Free Trade and Labour Mobility in Canada” portion of the bill makes good on Carney’s promises to remove federal interprovincial trade and labour mobility barriers, fulfilling Carney’s election promise to pass the legislation by Canada Day.
The House of Commons also introduced a Ways and Means motion that will reduce the personal income tax rate from 15 per cent to 14 per cent, which received unanimous consent. Carney has committed to implement the tax cut by Canada Day.
The Stronger Borders Act, Bill C-2, which seeks to support Canada’s border, crack down on illegal fentanyl and take stronger measures on money laundering. The bill has been notably criticized for its potential civil liberties overreach. It is expected to receive more scrutiny this fall.
Bill C-8, a new version of the cybersecurity legislation that died on the order paper with prorogation at the end of the Trudeau government, was introduced and read a first time.

The Senate will resume sitting on Wednesday this week to consider and likely pass Bill C-5 before rising for the summer.

The Summer Barbeque Season

As Members of Parliament rush out of the House of Commons and return to their ridings, Carney and his team have sent strong signals about what to expect this summer:

The target of getting a “concrete” commitment by July 1 to partner with the EU on an industrial defence program as Canada seeks to ramp up its military spending to meet NATO targets.
An economic and security deal with Donald Trump within 30 days of the G7 summit – around July 16.
Hosting Indigenous leaders for a summit on July 17 that aims to address concerns raised by the projects of national interest legislation.
Pre-budget submissions for the fall budget are due on August 1st.
A summer byelection for CPC leader Pierre Poilievre in the riding of Battle River—Crowfoot. CPC MP Damien Kurek, who was re-elected in April, resigned to let Poilievre run in the riding after he was unable to secure his own Carleton seat. A byelection is expected to occur in August.

What to Expect in the Fall

We can expect the Fall Session to be of similar intensity to the spring session. Carney will need to continue to showcase the durability of his caucus and differences from his predecessor, with the following activity expected.

The anticipated return of Pierre Poilievre to the House of Commons.
The reintroduction of revised legislation concerning online harms, AI, and privacy.
A targeted fall budget, with a focus on marquee Liberal platform commitments, likely emphasizing housing.
The possible creation of a new defence procurement agency.

Counsel’s multipartisan federal team looks forward to keeping you informed of forthcoming legislation and opportunities for your business or organization to advance meaningful policy change in Canada.

Sheamus Murphy
Managing Partner

Alex MacDonald
Associate Vice President

Will Shelling
Account Director

Chase Tribble
Senior Consultant

Elizabeth Campbell
Senior Consultant

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