Parliament returns with U.S. trade war, EU ties and affordability in focus

Parliament returns Monday after a three-month break, with the trade war with the United States, Prime Minister Mark Carney’s push for closer formal ties with the European Union and affordability expected to dominate the sitting. McGill University political science professor Daniel Béland said public opinion broadly supports Carney’s international approach, but the Liberals remain vulnerable to Conservative attacks over the economy and cost of living.

Carney told his caucus Friday that his government would remain focused on lowering costs for Canadians and defending sovereignty. Following a European trip, he said the House of Commons would debate and vote on any eventual alliance with the EU after European Commission President Ursula von der Leyen suggested Canada could become the bloc’s first “associate member.” No such membership currently exists. The proposal follows a breakdown in Canada-U.S. trade talks, which Carney halted in August before a U.S. tariff deadline, saying American demands would have restricted Canada’s protections for French and its ability to make trade agreements with other countries.

Trump said last week that Canada becoming an EU associate member could be a “hostile act.” Carney was scheduled Sunday to meet French President Emmanuel Macron in Saint-Pierre-et-Miquelon and host Norway’s prime minister in Ottawa, before travelling to New York Monday for the United Nations General Assembly.

Carney called the coming sitting crucial and said the government would introduce some of its most consequential legislation in decades. That includes the proposed Building Canada Strong Act, intended to streamline infrastructure project reviews. Government House leader Steven MacKinnon said major economic legislation would be the fall sitting’s centrepiece, without providing details. Béland said planned Liberal amendments to the Labour Code could prove controversial; Jobs Minister Patty Hajdu said Saturday that forthcoming legislation would reduce the number of times the federal government must intervene in strikes.

The Liberals return with a slim majority and three additional MPs after sweeping Aug. 31 byelections. Carney’s former deputy chief of staff Braeden Caley won North Vancouver-Capilano and Tanveer Shahnawaz won Beaches-East York, both previously Liberal seats. Dairy farmer Daniel Gobeil won Chicoutimi-Le Fjord, taking a seat previously held by Conservative Richard Martel, who accepted a Senate seat this summer. Conservatives Cathay Wagantall and Larry Brock resigned, while Chris d’Entremont, Michael Ma, Matt Jeneroux and Marilyn Gladu crossed the floor to the Liberals.

Conservative Leader Pierre Poilievre told party MPs in Penticton, B.C., that Canadians are struggling financially and accused Carney of negotiating with the EU in secret. He said Conservatives support free trade and continued NATO co-operation with European allies, but oppose EU taxes, laws and open-border immigration rules in Canada. The party also returns after public infighting over its direction, with some strategists questioning Poilievre’s control of caucus and internal discipline. Béland said the Conservatives are struggling to gain ground while Carney is travelling and confronting the Trump administration, as people often rally behind a prime minister during trade wars and international tension.

The NDP returns one seat short after longtime Quebec MP Alexandre Boulerice resigned in August, following Nunavut MP Lori Idlout’s earlier defection to the Liberals. The party has five MPs in Parliament, not including leader Avi Lewis, who has said he will not rush to seek a Commons seat while focusing on grassroots outreach and rebuilding the party. Béland said the NDP’s weak position gives Carney more room to advance ideas such as private investors taking over operations at Canada’s four largest airports, but cautioned the Liberal government against becoming overconfident and introducing measures Canadians oppose.