Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning manufacturing, e.g. textile and apparel, chemical, electronics, wood and paper, metals, plastics and rubber, packaging, and machining. Every Monday, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Manufacturing? Don’t miss this week’s updates in Mining and Oil & Gas.

Dates: 2025-10-19 to 2025-10-25

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Committee Calendar
• 🇨🇦 Canadian Federal GR News
• 🗺️ Canadian Provincial GR News
• 💬 Government Consultations
• 📚 What We're Reading This Week

This Week's Parliamentary Committee Calendar

• HOC Environment and Sustainable Development Committee to Review Canada’s 2030 Emissions Reduction Plan: On October 27, the House of Commons Environment and Sustainable Development Committee will hear from Clean Prosperity, Pembina Institute, Keystone Agricultural Producers, and others regarding the effectiveness and potential improvements of Canada's 2030 Emissions Reduction Plan.
• Natural Resources Committee Examines Development of Critical Minerals: The House Natural Resources Committee will conduct a televised session on October 27, focusing on the development of critical minerals in Canada, with witnesses from the Helium Developers Association, Mining Association of Canada, Vale Base Metals, Business Council of Canada, and Manitoba Métis Federation.
• Science and Research Committee Studies Private Sector R&D Investment: Set for October 27, the Science and Research Committee will examine private sector investment in Canadian research and development, featuring speakers from Martinrea International Inc., MaRS Discovery District, universities, and industry groups.
• Senate Foreign Affairs and International Trade Committee to Review CUSMA and North American Trade: The Senate Committee on Foreign Affairs will convene October 29 to discuss the Canada-United States-Mexico Agreement (CUSMA) and related trade issues with testimony from Global Affairs Canada, the Aluminum Association of Canada, and Canadian Steel Producers Association.

Canadian Federal GR News

Canada Reduces Import Quotas for GM and Stellantis Amid Facility Scale-Backs

The Government of Canada announced significant cuts to the import remission quotas for General Motors (GM) and Stellantis based on both companies’ reduced manufacturing activity in Canada. The decision comes after GM scaled back production at its Oshawa and Ingersoll plants, and following Stellantis’ cancellation of its Brampton assembly plant plans. Under the auto remission program implemented in April 2025, automakers benefit from tariff-free imports from the U.S. if they meet certain Canadian production thresholds. GM will see its annual remission quota drop by 24.2%, while Stellantis faces a 50% reduction. The government cited breaches of commitments made to maintain Canadian operations and workers. This move reflects Ottawa’s position on requiring automakers to meet domestic production and workforce obligations.

Sources: Announcements: www.canada.ca

CBSA Launches Dumping and Subsidy Investigations on Chinese Truck Bodies

The Canada Border Services Agency initiated formal investigations into the alleged dumping and subsidizing of truck bodies from China, following a complaint by Morgan Canada Corporation and Morgan Transit Corporation. The investigation covers imports that, according to complainants, have resulted in price undercutting, lost sales, and adverse impacts on production and employment. The Canadian International Trade Tribunal will conduct a preliminary injury inquiry with a decision expected by December 23, 2025, while the CBSA will issue a preliminary decision by January 22, 2026. Currently, Canada has 158 special import measures in effect, which in 2024 protected approximately 45,000 Canadian jobs and $18.4 billion in production.

Sources: Announcements: www.canada.ca

Canada Announces $4.1 Million to Support Sherbrooke Manufacturing Sector

Canada Economic Development for Quebec Regions is allocating a total of $4.1 million in repayable contributions to four Sherbrooke businesses—Dauphinais, Royer, FilSpec, and Attitude. Announced by Minister Mélanie Joly and local MPs, the funding targets acquisition of production equipment to enhance capacity, productivity, and innovation. The funds support sectors like industrial manufacturing, eco-friendly products, and technologies, and are provided under the Regional Economic Growth through Innovation program. The government states this assistance aims to improve competitiveness as companies navigate competitive markets and digital transition.

Sources: Announcements: www.canada.ca

Government Plan Focuses on Industrial Leadership and Domestic Market Development

Minister Mélanie Joly outlined Canada’s industrial leadership strategy in recent remarks, presenting a three-pillar plan: Protect, Create, and Attract. The Protect pillar encompasses short-term market protections for sectors targeted by foreign tariffs, such as steel, aluminum, auto, and lumber, and establishes a $5 billion Strategic Response Fund. Investment in domestic defense production and infrastructure aims to build a robust domestic market. The Create pillar addresses job creation through defense spending, major projects, and the development of Canadian champion companies. The Attract pillar commits to reducing red tape and expediting permitting, while boosting foreign direct investment particularly in advanced sectors. Examples include recent investments in steel and aluminum production for defense and growing European exports in the aluminum sector.

Sources: Announcements: www.canada.ca

IAAC Grants Early Decision on Josephburg Condensate Fractionation Project

The Impact Assessment Agency of Canada issued an early decision on the Josephburg Condensate Fractionation Project in Alberta, determining that potential adverse effects within federal jurisdiction are limited or will be addressed through existing laws such as the Fisheries Act and Alberta's Environmental Protection and Enhancement Act. The assessment process involved federal departments, provincial authorities, stakeholders, and Indigenous organizations. As a result, a full federal impact assessment is not required, clearing the way for provincial and regulatory approval processes to proceed.

Sources: Announcements: www.canada.ca

Statistics Canada: Manufacturing Sales Increase 2.8% in September

Statistics Canada’s advance estimate indicates a 2.8% increase in total manufacturing sales for September 2025. The largest rises occurred in the transportation equipment and petroleum and coal products subsectors. The data marks continued growth in industrial activity, with implications for supply chain dynamics and capacity utilization across these segments.

Sources: Open Government Data Set: www.statcan.gc.ca

Net-Zero Advisory Body Calls for Strategic Industrial Policy Shift

At the Senate’s Standing Committee on Energy, Robert Hornung from the Net-Zero Advisory Body presented a report characterizing Canada’s net-zero industrial policy as fragmented. The testimony included suggestions to prioritize sectors, create public-private forums, and intensify intergovernmental coordination, with a particular interest in boosting technical capacity for EVs and clean processes. Procurement and carbon capture were noted as policy tools, and the impact of U.S. tariffs on the EV strategy was addressed. The report calls for a coordinated, long-term approach with measurable objectives. The government’s response is pending.

Sources: Transcripts: senparlvu.parl.gc.ca

Senate Committee Weighs Investment in Offshore Petroleum and Wind Energy

The Senate Standing Committee on Energy discussed Newfoundland and Labrador’s offshore petroleum industry, specifically the Bay du Nord project slated for 2031. Jean-Philippe Prost of Natural Resources Canada explained the legislative and regulatory framework under the Atlantic Accord, describing significant investment since the 1960s. Environmental concerns, regulatory requirements for operators, Indigenous consultation, and compliance with emissions targets were discussed, with carbon intensity of the offshore sector representing 0.6% of Canada’s total emissions.

Sources: Transcripts: senparlvu.parl.gc.ca

Senate Reviews Sustainable Finance and Export Competitiveness Measures

The Standing Senate Committee on National Finance considered Canada’s economic position in relation to energy transition, focusing discussion on the role of fiscal stimulus and adaptation to international carbon regulations for export competitiveness. Testimony from Professor Olaf Weber highlighted the risk of stranded assets in the oil and gas sector and advocated for investment in renewable energy and battery manufacturing. Concern was expressed about the impact of carbon border adjustments on Canadian exporters. Representatives from EDC and Carleton University spoke to the need for economic diversification and the relative strength of the resource and services sectors over manufacturing.

Sources: Transcripts: senparlvu.parl.gc.ca

Committee Examines Research in Ocean Carbon Sequestration Technologies

Senate Fisheries and Oceans Committee reviewed the current status of ocean carbon sequestration (mCDR) research in Canada. Government and non-governmental witnesses described existing knowledge gaps on biological effects, the high cost of technology, and the necessity for further scientific consensus and stakeholder engagement before wide deployment. European regulatory approaches and the economic implications for sectoral integration were also considered.

Sources: Transcripts: senparlvu.parl.gc.ca

Industrial Product Price Index Increases 5.5% Year-Over-Year

According to Statistics Canada, the Industrial Product Price Index increased by 0.8% month-over-month in September, representing a 5.5% rise over the previous year. Likewise, the Raw Materials Price Index rose 1.7% for the month and 8.4% year-over-year. These figures signal price pressures relevant to procurement and cost management in manufacturing.

Sources: Open Government Data Set: www.statcan.gc.ca

Canadian Provincial GR News

Ontario Moves to Strengthen Economy With New Legislation Targeting Red Tape

Ontario introduced the Building a More Competitive Economy Act to streamline regulatory processes, advance labour mobility, and support local industry. The Act includes plans for a centralized digital permitting system, supports for the auto and forestry sectors, and updated environmental and labour regulations.

Sources: Provincial Announcement: news.ontario.ca

Nova Scotia and Ontario Sign MOU on Small Modular Reactor Collaboration

Nova Scotia and Ontario have formalized an agreement to jointly explore small modular reactor (SMR) technologies, focusing on sharing technical knowledge, regulatory coordination, and federal engagement for future clean energy deployment.

Sources: Provincial Announcement: news.novascotia.ca

British Columbia Advances North Coast Transmission Line and Clean Energy Legislation

The Government of British Columbia tabled new legislation to expedite construction of the North Coast Transmission Line, prioritize electricity for industrial sectors such as mining and LNG, and introduce regulatory changes to restrict new grid connections for cryptocurrency mining.

Sources: Provincial Announcement: news.gov.bc.ca

BC Approves Mining Permit for Record Ridge Magnesium Mine

The BC Ministry of Mining and Critical Minerals has granted a Mines Act permit for Western High Yield Resources' Record Ridge magnesium mine, with environmental and safety requirements including mitigation measures for dust and noise. Further permits for road use and water management are pending.

Sources: Provincial Announcement: news.gov.bc.ca

Alberta Court Orders Creative Sentence in Workplace Safety Case

McLeod Valley Sand and Gravel has been ordered by the Alberta court to pay $150,000 to the Alberta Sand and Gravel Association for safety training following a serious workplace injury incident in 2023. The penalty will support the development of online safety modules.

Sources: Provincial Announcement: www.alberta.ca

Government Consultations

Health Canada Opens Consultation on Proposed Re-evaluation of DEET and Related Toluamides

Health Canada is seeking feedback on the proposed re-evaluation of DEET and related active toluamides, including updates to product labelling based on recent scientific assessments. The consultation runs until January 21, 2026.

Sources: Canadian Government Consultations: www.canada.ca

What We're Reading This Week

• General Motors to stop BrightDrop van production in Ontario: GM halts production of BrightDrop electric vans in Ingersoll, Ontario, affecting regional auto manufacturing.
• GM to end electric van production at CAMI plant in Ingersoll, Ont.: GM terminating the CAMI electric van line, citing market shifts.
• GM ends BrightDrop production in Ingersoll in latest blow to Ontario auto sector: Industry faces ripple effects from GM's BrightDrop wind-down in Ontario.
• B.C. proposes industrial electricity rules putting resource development before AI, data centres: BC considers revised electricity allocation favoring resource sector over emerging industries.
• Canada offers tariff relief to some steel, aluminum products from U.S., China: Tariff relief applies to select U.S. and Chinese steel and aluminum imports.
• Review: New made-in-Canada Toyota RAV4 gets a revamped look with more power and better fuel efficiency: Canadian-built Toyota RAV4 debuts refreshed model with higher efficiency.
• Gangnan District, Guigang City, Guangxi: Building a Wood-Based Smart Home Industry Cluster Facing ASEAN: Southeast Asia expands capacity in wood-based home manufacturing clusters.

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