Canadian Legislative News

Canadians recently elected a minority government led by Justin Trudeau and the Liberal Party.

The Liberal Party maintains power. The Conservative Party increased its seats in Parliament, winning the popular vote nationally. The Liberal Party spread its support across regions, with a strong showing in major urban centers like Toronto, Montreal, and Vancouver.

The breakdown of seats may give the Liberal Party enough strength that it will not have to establish a formal coalition to govern; however, it will need to work with the other parties to pass important legislation. It appears that with the expensive toll of the campaign, and limited fundraising, the New Democratic Party (NDP) will have very little incentive to fight another campaign soon.

The Bloc Québecois resurgence and momentum over the course of the campaign changed the political landscape. It won enough seats to gain official party status and positions it as an important player in the new Parliament. The NDP lost more than a dozen seats, falling back to its fewest number of seats since 2004, along with a smaller share of the popular vote. The story of the campaign may be the intense divisions, both between regions and political viewpoints that have emerged.

For the fleets in Canada, the new power dynamic in Ottawa brings opportunities and challenges. It provides a unique opportunity for meaningful engagement with all political parties on issues of concern to our industry. In this minority government scenario, members of Parliament from the opposition parties have a stronger voice than in the case of a majority government, therefore non-partisan engagement becomes even more critical to NAFA’s advocacy goals. The main challenge would be the concessions on environmental and taxation policies the Liberals would have to make to the NDP to get support to govern.

On the policy front, the election results suggest the federal zero-emission vehicle (ZEV) program would be expanded to include used ZEVs and that support for building ZEV infrastructure will continue. Fleet managers should expect increased funding for the program in future federal government budgets.  The fuel emission standards would also be a top priority for the new liberal government supported by the NDP and Green parties, with the single standard will continue to lean towards the state of California standards.

The ratification of the USMCA will be at the top of the agenda of the new government. With support from the two major parties in House of Commons, the government will move to ratify the deal when the House reconvenes this winter. Ratification of the agreement is less certain in the United States, although the automotive side letter, secured when USMCA was signed, continues to protect the Canadian automotive industry from potential U.S. auto tariffs.

In the coming weeks, NAFA Canadian Counsel will actively work to educate all new members of Parliament on the priorities for fleets in Canada.