Canada’s new industrial strategy and five nation-building projects

by Dr. Rey D. Pagtakhan

In just two weeks, five days apart, the federal government unveiled two major initiatives: Canada’s new industrial strategy and the five nation-building projects. These announcements reflect Prime Minister Mark Carney’s oft-repeated conviction:

“We cannot control what other nations do. We can control what we build for ourselves. Canada is building the strongest economy in the G7, less reliant on foreign powers and more resilient in the face of global shocks.”

For context, the G7 is an informal group of major democracies – Canada, France, Germany, Italy, Japan, the U.K., and the U.S. – which, together with the EU as a non-enumerated member, represent nearly $57 trillion in GDP or about 29 per cent of the world economy.

Uncertainty at home

In over 50 years of living in Canada, I have not felt such deep economic unease. Canadians face displacement of workers, supply chain disruptions, fewer investments, threats to businesses, and rising costs of living. Much of this stems from U.S. President Donald Trump’s tariff war, whose legality remains tied up in appeals.

Two government responses

Against this backdrop, the Prime Minister made two key announcements:

I. September 5, 2025 – New industrial strategy ($75B)

Industry Minister Mélanie Joly called Canadian industry “the backbone of our country’s economy.” The strategy centres on re-skilling workers, retooling businesses, and diversifying production. Highlights include:

• $3.37B for workforce development, including:

o             $450M to re-skill 50,000 workers, especially those hit by tariffs, plus underrepresented groups;

o             $382M for workforce alliances of employers, unions, and industry groups;

o             $1.6B in extended Employment Insurance (EI) benefits;

o             Funds for severance, digital job tools, and local innovation projects.

• $5B Strategic Response Fund to support key sectors under pressure.
• $70B Buy Canadian Policy to prioritize domestic suppliers in federal spending.
• $370M for agriculture, especially canola producers.
• $1B regional tariff response initiative to help small and medium businesses expand and diversify.

II. September 10, 2025 – Nation-building projects ($60B)

Five large-scale projects are set to create tens of thousands of high-paying jobs and long-term prosperity:

1.       Phase two of LNG Canada in Kitimat, B.C.;

2.       Darlington New Nuclear Project in Ontario (small modular reactors);

3.       Contrecoeur Terminal expansion at the Port of Montreal;

4.       McIlvenna Bay Foran Copper Mine in Saskatchewan;

5.       Expansion of the Red Chris Mine in B.C.

“These projects are just the beginning,” said the Prime Minister. “They will generate more than $60 billion for the Canadian economy.”

Looking ahead

Both the new industrial strategy and the nation-building projects represent timely, ambitious steps to strengthen Canada’s economy against global uncertainties while preparing for a more resilient, prosperous future.

Exciting and impressive beginnings, indeed!

Dr. Rey Pagtakhan, a retired medical professor from the University of Manitoba, served in Parliament from 1988 to 2004, including as Parliamentary Secretary to Prime Minister Jean Chrétien and as Minister of Western Economic Diversification in Prime Minister Paul Martin’s cabinet.