A New Government and a Clear Opportunity to Steer Competitiveness
With the federal election behind us and a new government in place, it’s time to face the urgent task of strengthening Canada’s economic resilience and competitiveness. On behalf of the Railway Association of Canada and our members, we extend our congratulations to Prime Minister Mark Carney and look forward to working together on the urgent task of strengthening Canada’s economic resilience and competitiveness.
The context surrounding this election is unlike anything we have seen in recent memory. U.S. tariffs on Canadian products have placed serious pressure on our export-driven economy. Will this lead to markets shifting? If so, the question facing Canada is clear: how do we adjust to this new reality and support that transition?
The answer must include policies that support investments in Canada’s supply chains to keep our country moving. For the rail industry, that means three core priorities:
- Encouraging private investment through tools like accelerated depreciation
- Accelerating project approvals, and
- Ensuring a more stable and predictable labour environment.
Interestingly, these are not rail-specific goals—they are supply chain fundamentals. In fact, we are not alone in making the case. As we shared in April, the Railway Association of Canada joined with nine other associations to launch Moving Economies. Together, we have offered targeted, actionable policy recommendations to help unlock the investment Canada needs. You can read our shared proposals here.
To reinforce this message, we will soon launch a media campaign in the Ottawa area, aimed at reaching newly elected and returning Members of Parliament, senior public servants, and other key decision-makers. Our goal is to ensure that economic competitiveness, infrastructure investment, and labour stability remain top of mind as the new government sets its agenda.
As you all know, railways are already investing in Canada. Since 2014, Canadian railways have increased their investments, while overall private sector capital spending has declined. We have increased capacity, modernized equipment, and improved efficiency—all without relying on public funds. Under the new circumstances we now live in, continued progress requires clear, coherent policy decisions.
That’s why we are raising concerns about certain election platform commitments made by the government—specifically, the proposed reintroduction of extended regulated interswitching. A measure like this, which was introduced without consulting the railway industry, risks undermining the very investment climate Canada needs to strengthen. It introduces uncertainty, reduces competitiveness, and ultimately drives jobs and capital elsewhere.
This month, we will continue to engage with ministers and MPs to share our perspective and outline how rail can be a partner in building a stronger, more resilient economy. We will also reinforce that safety, sustainability, and competitiveness are not competing priorities—they are deeply interconnected.
As always, I welcome your feedback and ideas.
Eric Harvey