Phoenix 24
Ottawa is turning political stability into an economic asset as alliances and trade rules fracture.
TORONTO, CANADA
Prime Minister Mark Carney has presented Canada as a reliable destination for international capital, arguing that trust has become one of the world economy’s scarcest commodities. His government wants to attract C$1 trillion in investment over five years while reducing the country’s dependence on the United States.
At the Canada Investment Summit in Toronto, officials promoted more than 160 projects involving energy, mining, technology, transportation and critical infrastructure. Ottawa emphasized Canada’s democratic institutions, natural resources, skilled workforce and access to international markets as advantages in an increasingly unpredictable geopolitical environment.
Carney announced that businesses would be allowed to immediately deduct most new capital investments, including machinery, software, research and infrastructure. The measure is expected to reduce Canada’s effective tax rate on new investment from approximately 13% to 6.4%, placing it below the corresponding American rate.
The government is also considering long-term private concessions to operate the airports serving Toronto, Montreal, Calgary and Vancouver while retaining public ownership. Supporters argue that private capital could finance expansion and improve efficiency. Labour organizations fear the model could increase costs for passengers and weaken public accountability.
Canada’s strategy has gained urgency from its trade confrontation with the United States. Although most bilateral commerce remains tariff-free, Washington’s new restrictions have exposed the vulnerability created by decades of economic integration. Ottawa is consequently seeking deeper investment and commercial ties with Europe, Asia and the Middle East.
The safe-haven narrative nevertheless faces contradictions. Environmental and social groups argue that projects involving fossil fuels, defence production and artificial intelligence could transfer public risk to private investors. Canada must therefore demonstrate that accelerated approvals and generous incentives will create lasting national capacity rather than simply subsidize external capital.
Stability attracts investment, but sovereignty determines who ultimately benefits.