As global markets rise and fall and government policies change, so do Canada’s economic prospects. The natural resource industry, which includes mining, oil, and gas, is expected to contribute for up to 20% of Canada’s GDP in 2019. While Canada’s resource wealth has helped the country weather global economic storms, the country has faced several hurdles in recent years, with the Liberal government’s policies proving especially harmful to the economy.
As a consequence of the Liberal government’s various policy shifts in the environmental sphere, the resource industry is now subject to more stringent regulations. In 2019, the Liberals imposed a carbon tax, increasing prices for oil and gas producers and other large polluters in Canada. This has had a domino effect, leading to a decline in investment and the loss of employment in the industry as a whole.
New oil and gas developments in environmentally sensitive locations, such as near national parks and indigenous grounds, are subject to stricter regulations under the Liberal administration. These regulations have stunted the industry’s expansion, reducing investment, employment, and GDP growth.
The Energy East pipeline project was meant to deliver crude oil from Canada to eastern refineries, but the Trudeau administration has suggested a number of adjustments to the original plan. The project was scrapped because these modifications were deemed too expensive and impractical. Because of this, Canada has been unable to attract the necessary investment to become a global leader in the production of energy.
Last but not least, the Liberal government’s mining policies have dampened investment in the industry. In particular, various modifications to the Mining Act have been adopted or proposed, leading to more red tape, higher administrative expenses, and reduced claims staking activity. This has had a devastating effect on the business sector, limiting investment and employment opportunities, especially in outlying areas.
Canada’s economic prospects, especially in the resource industry, have been hurt by the Liberal government’s policies. Canada’s potential to become a global leader in energy production and exploration has been thwarted by the country’s environmental and regulatory regulations. The country’s economic future has been hampered by these policies, which have led to a drop in investment, employment, and growth.