In an era where government intervention and expansive industrial policy often dominate headlines, recent events in Canada and internationally offer a compelling counter-narrative: the fundamental power of market forces remains undiminished.
Ottawa's Reversal on the Anglo-Teck Merger
A prime Canadian example is the federal government's recent about-face on the massive $70-billion merger between Teck Resources and Anglo American. Industry Minister Mélanie Joly initially signaled significant reservations, suggesting the deal was not "enough" and pushing for conditions like moving the combined company's primary stock listing to Toronto from London.
Her office had recently corrected media reports, stating a decision would come "in the next months," potentially delaying it deep into 2026. However, approval was suddenly granted this week, closely following the Supreme Court of British Columbia's final approval on December 12 and an overwhelming shareholder vote in favor on December 9.
The new company's commitments, including a plan to spend $4.5 billion in Canada over five years, appear consistent with Teck's existing strategic direction. This swift governmental approval, following definitive market and legal milestones, underscores a critical reality. As analyst Terence Corcoran notes, Anglo-Teck served as a test of Canada's market economy, and the process ultimately affirmed the primacy of private investment decisions over political central planning.
Global Electric Vehicle Hype Meets Market Reality
Beyond Canada's borders, a parallel trend is unfolding in the automotive sector. The rapid, policy-driven push toward electric vehicles is encountering significant market-driven headwinds. In the United States, EV sales plummeted 42% in November following the removal of federal tax credits, demonstrating how consumer demand fluctuates with real price signals.
Globally, growth in EV sales slowed to just 6% last month, the most modest increase since February 2024. Concurrently, the European Commission proposed relaxing its stringent 2035 ban on new internal combustion engine cars, a move criticized by environmental activists as a major retreat from green goals. European automakers argue the adjustments are a necessary response to tangible market realities and consumer readiness.
The Enduring Primacy of Market Forces
These two developments, though occurring in different sectors and hemispheres, share a common theme. They expose the risks and limitations of state capitalism, where political fantasies can collide with economic practicalities. The Anglo-Teck saga shows that even determined ministers must eventually bow to the will of shareholders and court rulings that validate market transactions.
Similarly, the EV slowdown illustrates that long-term technological transitions cannot be mandated by decree alone; they must align with consumer affordability, infrastructure readiness, and genuine competitive appeal. Together, these cases serve as a timely reminder that while governments can set frameworks and incentives, market realities ultimately dictate the pace and direction of major economic shifts.
