Business · Economy · 2 hrs ago
Canada signals a bigger role for government in key industries
Canada’s Carney government is signalling more intervention in key industries as global trade rules weaken.
Industry Minister Mélanie Joly says the government may protect some markets and provide more financing to businesses.
It is also considering taking ownership stakes in companies to help fund investment and risk-taking.
Ottawa is considering a forced divestiture of Stelco, a steelmaker owned by a U.S. company, after saying it breached its commitments.
Joly has stopped short of saying the government will nationalize Stelco.
Canada has taken ownership stakes in companies during earlier crises, including in automakers during the 2008-09 financial crisis and Air Canada during the pandemic.
The government aims to strengthen economic sovereignty, while avoiding policies that damage competition or relations with foreign partners.
The federal budget is due to be unveiled on Nov.
5, but no further timeline for the measures is given.
The Carney government is signalling a larger role for the state in key industries to strengthen Canada’s economic sovereignty.
Its measures include support for tariff-hit sectors, shared ownership of a proposed oil pipeline, a sovereign wealth fund and possible forced divestiture of Stelco.
Industry Minister Mélanie Joly says the government may provide more financing and take equity positions in some companies.
The government says Stelco breached its commitments, but Joly stopped short of saying Ottawa would nationalize the steelmaker.
The article says Ottawa faces the challenge of supporting domestic industries without undermining competition or upsetting foreign partners.
- Who
- The Carney government, including Industry Minister Mélanie Joly.
- What
- The government is signalling more intervention in key industries, including possible equity investments in companies.
- When
- The article was published on October 22, 2026. Joly spoke at an event the previous Friday.
- Where
- Canada.
- Why
- To strengthen economic sovereignty and support industrial transformation amid the collapse of rules-based global trade.
This story does not have two clearly opposing sides.
Ottawa took equity stakes in General Motors and Chrysler during the global financial crisis.
Ottawa took an equity stake in Air Canada as part of a broader bailout.
The U.S. government secured minority ownership in Vancouver-based miners Lithium Americas Corp. and Trilogy Metals Inc.
Joly spoke at a Canadian Club Toronto event about the government’s role in the economy.
The federal budget is scheduled to be unveiled.
- Industry minister
- Mélanie Joly
- Steel company
- Stelco Inc.
- Pipeline
- Proposed Pacific Link oil pipeline
- Budget date
- November 5
- U.S. mining investments
- Lithium Americas Corp. and Trilogy Metals Inc.
What people are saying
We have to accept that the government’s role will be bigger than usual because of the depth of the crisis
So, what we will do is in certain sectors, we’ll protect our market, obviously.
We will provide even more financing.
It is the government’s position that Stelco has breached its commitments.