prime minister Mark Carney says it will take time for Canadians to see the results of efforts to grow and diversify the economy, but insists “we must continue on this path.”
In a year-end interview with Global National host and executive editor Dona Friesen, Carney said Canada was already in a better position than when he first became prime minister nine months ago, thanks to a renewed focus on strengthening international relations and boosting domestic industry.
However, he acknowledged that much remains to be done to address Canadians' affordability issues and that a program of “relentless” growth is needed.
“We are making progress,” he said.
“We are in a stronger position than we were nine months ago and at the start of this year, but we need to continue. And we will continue.”
Carney added that his government's “core” agenda is to continue to grow the economy and move away from dependence on the United States, which has hit Canada with tariffs on many industries.
The uncertainty surrounding the upcoming renegotiation of the Canada-United States-Mexico Free Trade Agreement (CUSMA) makes this project even more urgent.
“What I would say to Canadians is that almost everyone wants to do more with Canada,” he said, pointing to the raft of international agreements he has signed on trade and defense.
“We're becoming an increasingly confident nation that has ambition. So people want to do business with us now. It's good for the economy, it's good for jobs, it's good for the future, it's good for our independence from the United States. But it's also an opportunity to help shape a world that's becoming more dangerous and more divided.”
Carney campaigned on promises of strong action in his leadership and general election campaigns this year, and was asked about how he plans to tackle issues including efforts to build a new pipeline and the war in Ukraine.
“I'm a politician, but I'm still a pragmatist,” he said.
On topic MPs switch from Conservatives to LiberalsCarney noted that “they came to us” and that he did not “poach” anyone from the opposition in hopes of building a majority government, something voters denied him in April.
“This is a positive vote for the government, supporting the government at a crucial time for our country,” he said.
Carney also expressed optimism that major pieces of state legislation dealing with border security, hate crimes and bail and sentencing reform would move quickly in the new year after those bills stalled in committee.
“We are doing everything we can at the federal level to address the problems in our communities,” he said, adding that Ottawa is “picking up the pace to make more progress.”
Canada won't 'rush into bad deal' on trade
Having promised a new trade and security relationship with the US this summer, Carney says he now looks forward to the CUSMA review scheduled for next July.
In the meantime, he said, Canada can continue to develop other international relationships and grow its domestic economy.
Get the latest national news
To stay on top of news affecting Canada and the world, sign up for breaking news alerts delivered directly to you as they happen.
“Certainly the strategy is not to rush into a bad deal,” he said. “That's something we're very disciplined about. And every week, the more we develop our economic strategy domestically, the more we develop these relationships abroad, the stronger we become.”
This approach gives Carney confidence in the CUSMA negotiations, even if they lead to a less integrated North American economy.
“Compared to the US, we are in a stronger position than at the beginning of the year,” he said. “However, the US position is much clearer… in many sectors they are less interested in us having free trade – with us or with anyone.”
He said he continues to argue to US President Donald Trump that the best way for the US to become more competitive with China in areas such as autos, artificial intelligence and critical minerals is with help from Canada and Mexico.
“You would think it would be something interesting,” he said.
“Sometimes they care about that, but at the same time they're tariffing those particular industries (automotive and steel). So there's a mismatch in terms of objectives.”
Carney said that whatever the outcome of the review, questions about the future of North American trade “will be answered” by this time next year.
Asked what he learned from Trump, Carney said it was mostly what not to do because the country is less powerful than the United States.
“We have to be a reliable partner,” he said. “We have to be straightforward: 'These are our goals, this is what we're going to do. If we sign an agreement, we will abide by it.”
It is necessary to regulate “investments along with”
In the final months of 2025, particular attention was paid to a memorandum of understanding signed between Ottawa and Alberta on energy policy, including setting the stage for a potential new oil pipeline to the West Coast.
Carney was asked about political criticism over his support for increased oil production and exports after years of warnings about the dangers of climate change, which he said remains a major issue his government must address.
He said the memo makes clear the need to decarbonize that oil, and also includes Alberta's commitment to reducing methane emissions and signing a national clean power strategy.
It's a combination Carney believes will help Canada better meet emissions reduction targets that both the country and the world are on track to miss.
“Globally, we have veered off track,” he said. “The ability to keep the temperature below one and a half degrees is slipping away.
“The policies I inherited were not enough to achieve our 2035 targets, partly because regulation on its own is not enough; you need investment alongside it. So part of changing government is to really focus on that investment at scale.”
Carney said that approach does not mean Ottawa will move forward with the pipeline project despite the objections of the British Columbia government and First Nations.
“Consultation is a fundamental responsibility and we have been absolutely clear about that from the beginning,” he said, noting that no proposals had yet been submitted for the pipeline project.
“You can't consult on something that doesn't exist, so you have to make it possible for it to even exist before you consult,” he added. “This is not the government building a pipeline.
“I firmly believe and practice cooperative federalism. So it's not just what we build, but how we build it: we build inclusively, we build sustainably, we build in solidarity.”
Carney said there are “other options” if those consultations end without an agreement on the West Coast pipeline. That includes the possible revival of the Keystone XL pipeline to the U.S., although the prime minister said that would be “less beneficial” to Canada's economy and efforts to make it more independent and diversified.
Is Canada “more vulnerable” than it was in 1812?
Carney said Canada is “more vulnerable” and “more under threat than we have been” since 1812, citing threats from Russia, terrorism and non-state actors as examples.
He said his particular focus is on restoring Canadian sovereignty in the Arctic: not only by expanding military presence there “every day of the year” by land, sea and air, but also by building public infrastructure and development.
He pointed to significant increases in military spending, including pay increases for Canadian military personnel, as an example of his desire to bolster Canada's defense capabilities and position itself as a strong NATO ally.
As Canada asserts itself on the world stage, Carney said it will also have a greater presence in international negotiations, including efforts to end the war in Ukraine.
Canada, as a member of the coalition of the willing along with European and other global allies, will play a role in preserving Ukraine's security as part of a future peace agreement, he added.
“Ukraine would have been in a very weak position in these negotiations between two major powers (Russia and the United States) if the coalition had not helped provide support,” Carney said.
“This is one of the reasons why, as prime minister, I often talk with President (Vladimir) Zelensky, with our European partners, the United States: this is another way to influence what we believe in. We believe in democracy, we believe in the sovereignty of nations, territorial integrity. This is what we support.”
Carney said it is becoming increasingly important for Canada to stand up for its beliefs in a rapidly changing world.
“Internationally, the situation is very unstable,” he said.
