In a whirlwind of announcements, the Liberal government has set ambitious goals across various sectors, from foreign trade to housing and healthcare. However, the pressing question remains: Are these promises translating into concrete actions? As Mark Carney leads the charge, we examine his commitments and the progress made in key areas, while also reflecting on the legacy of the Trudeau administration.
Foreign Trade: Striving for Diversification
**The Commitment:** Carney has pledged to double non-U.S. exports to $600 billion annually by 2035.
**The Current Status:** Although it is early in the process, signs of diversification in exports are apparent, with about one-third now directed to countries outside the U.S., compared to just a quarter prior to the trade war. This shift is bolstered by rising prices in gold and crude oil. The government is also aiming to secure free trade agreements with India and South America’s Mercosur trading bloc by year-end.
**Historical Context:** The Trudeau government had previously set a target to enhance non-U.S. exports by 50 per cent by 2025, achieving this goal ahead of time, largely due to increased oil and gas exports and a rise in foreign student arrivals, which are counted as exports in services.
Housing: A Struggle to Meet Promises
**The Commitment:** The Liberal platform aims to double the housing construction rate to 500,000 homes per year by 2025.
**The Current Status:** Recent reports indicate that housing starts have fallen significantly short of this target, with just over 54,200 units completed in the first quarter of 2025. The Canada Mortgage and Housing Corporation anticipates about 247,000 starts this year, which is far below the ambitious goal set by Carney.
**Historical Context:** In 2024, the government had envisioned constructing 3.87 million homes by 2031 but has struggled to gain traction in increasing residential construction. Despite implementing a variety of measures to stimulate the housing market, the outlook remains grim.
Major Projects: Navigating Regulatory Hurdles
**The Commitment:** Carney’s administration aims to accelerate major infrastructure, mining, and energy projects to catalyse up to $500 billion in private-sector investments over five years.
**The Current Status:** The establishment of the Major Projects Office in Calgary is a step towards fast-tracking projects deemed crucial for national interest. Currently, 15 projects are under evaluation, collectively representing $126 billion in potential investment and the creation of 60,000 jobs. However, none have yet reached the construction stage.
**Historical Context:** The Trudeau government faced criticism for high and unpredictable regulatory burdens that deterred investment in essential infrastructure, such as pipelines.
Defence Spending: A Focus on Modernisation
**The Commitment:** Carney has vowed to ramp up defence spending to 5 per cent of GDP by 2035.
**The Current Status:** The latest figures indicate that defence spending has risen to 2 per cent of GDP, with plans for an additional $80 billion allocated to the military over the next five years. However, a clear strategy to meet the new NATO targets has yet to be outlined.
**Historical Context:** Trudeau’s administration had initially promised to reach 2 per cent of GDP by 2032, facing mounting pressure to enhance military capabilities amid global tensions.
Why it Matters
As Mark Carney’s government attempts to turn promises into reality, the effectiveness of these initiatives will significantly influence public trust and support for the Liberal party. With critical areas such as foreign trade, housing, and defence under scrutiny, the government’s ability to deliver on its commitments will be pivotal in shaping Canada’s socio-economic landscape for years to come. As citizens await tangible results, the pressure mounts for Carney to demonstrate that his promises are more than just words.
