The federal government has put a sudden stop to a planned prohibition on exporting certain single-use plastics, just days before it was set to take effect. Citing significant strain on the domestic economy, officials have suspended the ban and opened a new 70-day consultation period.
Economic Pressures Prompt Policy Shift
An export ban targeting items like plastic grocery bags, straws, cutlery, and ring carriers for beverage cans was scheduled to begin last Saturday, December 20, 2025. Instead, the government announced the suspension in the Canada Gazette, the official government publication. The notice pointed to tariffs and global supply chain issues as key factors creating "significant pressure on the domestic economy."
The government's formal notice stated the sales ban "will not fulfil an environmental objective commensurate to its economic impact." It argued that restricting exports would harm Canadian businesses by displacing domestic producers in favour of foreign competitors, potentially moving production and jobs abroad without meaningfully reducing plastic pollution globally.
Significant Industry at Stake
The decision underscores the economic weight of the plastics sector in Canada. According to the Gazette notice, the plastics production industry generated roughly $35 billion in revenue and supported approximately 85,000 jobs in 2023. Exports are a major component, with nearly $15 billion in plastic products sold abroad last year, 94% of which went to the United States.
While many producers have shifted to making paper, fibre, or compostable alternatives, a "significant number"—noted as often small businesses—have not converted their operations. The suspension aims to prevent losses from shuttered production lines and stranded manufacturing assets for these firms.
Next Steps and Environmental Impact
The new consultation period will run until February 28, 2026. During this time, the government will reassess the policy. Businesses that continue to manufacture the targeted single-use plastics must keep records for five years proving the products were not sold within Canada.
Officials downplayed the environmental consequences of the suspension. The notice concluded the effect on domestic plastic pollution would be "negligible," arguing that the global market for these items means international customers would simply source from other suppliers if Canadian exports ceased.
The move represents a notable pivot in Canada's strategy to manage plastic waste, balancing environmental goals against immediate economic concerns within a deeply integrated North American supply chain.
