Prime Minister Mark Carney is venturing into traditionally challenging territory for a Liberal leader this Thursday as he prepares to address the Calgary Chamber of Commerce. This meeting comes amid decades of strained relations between Liberal governments and Calgary's business community, particularly those in the oil and gas sector.
New Federal-Alberta Agreement Signals Potential Shift
The relationship between Ottawa and Alberta has remained tense throughout Justin Trudeau's tenure as prime minister, but Carney hopes to change that dynamic through a newly signed Memorandum of Understanding with Alberta Premier Danielle Smith. Smith has expressed remarkable positivity about her working relationship with Carney while emphasizing that her top economic priority remains securing a bitumen pipeline to Canada's Pacific coast.
The Carney-Smith agreement, scheduled for formal unveiling on Thursday, won't specify a particular pipeline project but will establish conditions to facilitate future energy development. When questioned about the announcement details on Wednesday, Carney remained strategically vague about specific provisions.
Internal Liberal Tensions Surface Over Deal
Even before its official release, the agreement has generated significant friction within Carney's own Liberal Party. Multiple MPs have reportedly voiced opposition internally, with a Tuesday cabinet meeting intended to brief ministers on the MOU stretching from a planned one hour to four hours of intense discussion.
The political challenges extend beyond Liberal ranks. Green Party MP Elizabeth May, representing a Vancouver Island riding, has warned that British Columbia Liberals will lose seats over this initiative. Meanwhile, the Bloc Quebecois has declared the agreement signals an abandonment of climate change efforts. Conservative Leader Pierre Poilievre has dismissed the deal as meaningless without concrete construction timelines for new pipeline projects.
Despite the political controversy, majority public support exists across Canada, including British Columbia, for new oil pipeline development to the coast. Pipeline politics nevertheless persist in 2025, demonstrating the complex landscape Carney's administration must navigate.
Broader Implications for Canada's Business Climate
If the memorandum represents a genuine effort to advance pipeline development without being burdened by excessive caveats that prevent construction, it could mark significant progress. The fundamental issue remains that Canada has become a country where major projects struggle to move forward.
This regulatory challenge was highlighted when potash giant Nutrien selected Longview, Washington over Canadian ports like Vancouver or Prince Rupert for its new multi-billion dollar export terminal. The company evaluated sites based on regulations, taxes, freight rates, approval timelines, and construction costs—ultimately choosing an American location.
Carney has emphasized that the Canadian economy can achieve more than what Americans can take away through tariffs and trade changes. While Canada possesses tremendous economic potential, realizing it requires removing regulatory barriers that have accumulated over years. The prime minister faces the critical task of making Canada attractive for business investment again, potentially eliminating the need for special offices and high-level agreements just to facilitate basic economic development.
Prime Minister Mark Carney meets with Alberta Premier Danielle Smith during a Stampede breakfast at the United Brotherhood of Carpenters and Joiners of America in Calgary on July 4. Photo by Darren Makowichuk /DARREN MAKOWICHUK/Postmedia
