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: 2025-11-30 to 2025-12-06

📋 In This Week's Newsletter

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

This Week's Parliamentary Calendar

• Senate ENEV Committee: Bill C-15 Divisions 32, 40, 41, 42 (Energy, Environment, Natural Resources): The Standing Senate Committee on Energy, the Environment and Natural Resources will study elements of Bill C-15 on December 11, hearing from Major Projects Office CEO Dawn Farrell, regulatory officials from Natural Resources Canada, and other stakeholders.
• Senate ENEV Committee: Bill C-15 Divisions 32, 40, 41, 42 (Energy, Environment, Natural Resources): On December 9, the Senate ENEV Committee will hold a session on Bill C-15 elements, with Professor Mark S. Winfield of York University scheduled to testify.
• Senate National Finance Committee: Bill C-15 Budget Implementation Review: The Standing Senate Committee on National Finance will examine Bill C-15 on December 9, with witnesses from Employment and Social Development Canada, Finance Canada, Treasury Board Secretariat, and Build Canada Homes Transition Team.
• Senate National Finance Committee: Bill C-15 and Supplementary Estimates (B): On December 10, the committee will discuss Bill C-15, Supplementary Estimates (B), and the inclusion of non-financial matters in budget bills, with witnesses from the Canadian Federation of Independent Business and Canadian ETF Association.
• House Health Committee: Supplementary Estimates (B), Canadian Food Inspection Agency and Health Agencies: The House Standing Committee on Health meets December 9 to review Supplementary Estimates (B), including CFIA, Health Canada, and Public Health Agency of Canada votes, and will hear from agency executives and the Canadian Institutes of Health Research regarding antimicrobial resistance.

Canadian Federal Government News

Ottawa Announces Sweeping Steel and Lumber Trade Measures

On December 5, the Honourable Shafqat Ali, President of the Treasury Board of Canada, detailed a series of measures intended to bolster Canada’s steel and lumber industries in the face of shifting US trade policy. The government will reduce tariff rate quotas for steel imports from non-FTA countries to 20% of 2024 levels and to 75% for FTA partners outside CUSMA. A global 25% tariff will be applied to certain steel-derivative imports, and the Canada Border Services Agency will receive a dedicated steel compliance team. Temporary tariff remissions on steel used in manufacturing, food packaging, and agriculture will end January 31, 2026. Freight rates for domestic steel and lumber shipments will be halved, and new ‘Buy Canadian’ requirements will apply to federal contracts over $25 million. Funding of $700 million is allocated to the Build Canada Homes initiative to create demand for Canadian wood products, and more than $1 billion is projected in new domestic demand for Canadian steel. Additional support includes $100 million for worker training, $500 million for the Softwood Lumber Guarantee Program, and $500 million in liquidity support for large softwood lumber firms. A single window for forestry sector support will be established, and a Canadian Forest Sector Transformation Task Force will report on long-term competitiveness.

Sources: www.canada.ca

Senate Committees Examine Bill C-15: Budget Implementation Act

On December 3, the Standing Senate Committee on National Finance continued its review of Bill C-15. Senator Elizabeth Marshall questioned Department of Finance officials on the extension and fiscal impact of the carbon utilization and storage investment tax credit, clarifying its application only in provinces with compliant storage regulations. The clean electricity investment tax credit, its non-refundable nature, and its eligibility for Crown corporations were discussed. Tax incentives for scientific research, enforcement resources for the Canada Labour Code, and repeal of the digital services tax were addressed by officials from Finance Canada and the CRA. Senators inquired about amendments for osteopaths, mineral exploration and carbon capture credits, immediate expensing for capital expenditures, and the competitiveness of the SR&ED tax credit. The committee also covered rental housing deductions, rebates for farm co-ops, and the Canadian entrepreneurs incentive. The session concluded with requests for more details on interest payments related to tax refunds.

Sources: senparlvu.parl.gc.ca

Senate Committee on Energy, Environment and Natural Resources Reviews CEPA Amendments and Indigenous Engagement

On December 4, the Senate Committee on Energy, the Environment and Natural Resources heard from Chief Bradley Benoit of the Miawpukek First Nation and Stephanie Lane of Environment and Climate Change Canada. Chief Benoit raised concerns about funding for Indigenous engagement and consultation in Newfoundland and Labrador’s offshore petroleum sector, as well as community participation in LNG projects and oil spill response. Senators acknowledged the community's employment record and discussed the financial burdens of cleanup operations. The committee also reviewed Bill C-15’s proposed amendments to the Canadian Environmental Protection Act, with Lane explaining that administrative and equivalency agreements are intended to strengthen intergovernmental cooperation without lowering environmental standards. Questions were raised about cross-border pollution and the adequacy of Indigenous consultations on the amendments. The committee will seek further clarification from the Minister of Environment.

Sources: senparlvu.parl.gc.ca

Senate Committee Reviews Creation of Environmental Protection Tribunal

The Senate Committee on Energy, the Environment and Natural Resources met December 2 to discuss Division 32 of Bill C-15, which would establish the Environmental Protection Tribunal of Canada (EPTC) within CEPA. Stephanie Lane (ECCC), Nick Covelli (ATSSC), and Jenna MacDonald (Justice) described the transfer of existing powers to the EPTC and the formal support role of the ATSSC. Senators Miville-Dechêne and Arnot questioned the independence of review officers and constitutional implications. Lane clarified enforcement processes and the rationale for replacing "review officer" terminology with "tribunal" to align with Tribunal Support Service authority.

Sources: senparlvu.parl.gc.ca

Ottawa Launches $357.7M Regional Defence Investment Initiative

On December 5, National Defence and Innovation, Science and Economic Development Canada announced the launch of the $357.7 million Regional Defence Investment Initiative (RDII) to expand domestic defence industrial capacity. The program, delivered by regional development agencies, will fund research and innovation, supply chain development, and support for SMEs. This move is positioned as groundwork for the upcoming Defence Industrial Strategy, aiming to enhance research, supply chains, and critical resource stockpiles. The initiative addresses both domestic and international supply chain participation for dual-use and defence sector businesses.

Sources: www.canada.ca

Atlantic Canada and Southern Ontario Open Applications for Defence Supply Chain Funding

On December 5, Atlantic Canada Opportunities Agency and FedDev Ontario opened applications for the Regional Defence Investment Initiative (RDII), with $38.2 million allocated to Atlantic Canada over three years and $94.7 million (plus $106 million from existing resources) to Southern Ontario. The program will help businesses scale up, improve productivity, and access domestic and global defence supply chains. Information sessions for applicants will be hosted by ACOA.

Sources: www.canada.ca, www.canada.ca

Canada Signs Trilateral Icebreaker Collaboration Agreement with Finland and US

On November 18, Canada, Finland, and the United States signed a joint statement of intent (JSOI) to advance the Icebreaker Collaboration Effort (ICE) Pact, targeting the production of icebreaking vessels for polar and Arctic sovereignty. The JSOI outlines industrial collaboration, workforce development, joint research, and international promotion. The agreement follows the US icebreaker fleet renewal initiative and ongoing shipyard involvement from all three countries, with follow-up meetings and an Industry Day planned for further private-sector engagement.

Sources: www.canada.ca

Canada Economic Development Agency Supports Quebec Water Treatment Manufacturer

On December 5, CED announced a $99,000 non-repayable contribution to TGWT Clean Technologies Inc. in Longueuil, Quebec, supporting the acquisition of equipment to repatriate production and manufacture new eco-friendly products. The funding, from the Regional Economic Growth through Innovation program, enables TGWT to automate facilities and expand product lines, with the company exporting over 70% of its volume and sustaining annual growth above 30%. The Quebec manufacturing sector accounted for 12.3% of GDP and 86.1% of exports in 2024, according to CED.

Sources: www.canada.ca

CFIA Repeals Outdated Regulations to Reduce Red Tape in Food Inspection

On December 3, the Canadian Food Inspection Agency announced the repeal of several outdated regulations, including those related to past outbreaks of avian influenza, Plum Pox Virus, and the Asian Long-horned Beetle. Restrictions for the Golden Nematode pest in Central Saanich were narrowed, and the Plant Protection Regulations were updated to allow for more agile regulations and the future adoption of electronic certification systems. These changes are part of the CFIA's Red Tape Reduction Progress Report and aim to enhance flexibility while maintaining plant and animal safeguards.

Sources: www.canada.ca

Ottawa Launches Horizontal Red Tape Reviews Across Federal Organizations

On December 3, President of the Treasury Board Shafqat Ali announced the launch of horizontal red tape reviews, expanding efforts to reduce regulatory barriers for businesses. The reviews will target project review efficiency, product market access, productivity barriers, international trade, and regulatory service delivery. The Red Tape Reduction Summit, co-hosted with the Canadian Chamber of Commerce, included business sector participants.

Sources: www.canada.ca

StatsCan Releases September Data: Sawmill Output, Energy Production, and Machinery Rental

Statistics Canada reported a 2.3% rise in lumber production in September to 3,844.9 thousand cubic metres, though output was down 2.7% year-over-year. Primary energy production increased 5.6% to 2.0 million terajoules, led by refined petroleum products, which rose 5.5%. The commercial and industrial machinery and equipment rental and leasing sector generated $18.1 billion in operating revenue in 2024, a 4.5% increase over 2023.

Sources: www.statcan.gc.ca, www.statcan.gc.ca, www.statcan.gc.ca

Canadian Provincial Government News

Ontario Announces $533 Million Investment in Agri-food Manufacturing

Lee Li Holdings Inc. will invest over $533 million to upgrade and expand facilities in Mississauga, creating 275 jobs and establishing a new bottling and packing facility focused on plastic bottle manufacturing for beverages.

Sources: news.ontario.ca

Ontario Welcomes $85 Million Advanced Manufacturing Investment in Sudbury

Sandvik will build a new maintenance, repair, and overhaul facility in Greater Sudbury, sustaining 400 jobs and creating 60 new positions to support critical mineral processing infrastructure.

Sources: news.ontario.ca

Manitoba Government Introduces Stronger Asbestos Safety Rules

Manitoba has amended regulations to require certification for asbestos work, employer registration, and clearer safety responsibilities, with phased implementation through June 2027.

Sources: news.gov.mb.ca

Ontario Launches Advanced Wood Construction Working Group

Ontario has established a group of sector experts to guide the implementation of the Advanced Wood Construction Action Plan to support modular and prefabricated wood-based building material use.

Sources: news.ontario.ca

Quebec's La Pêche Town Hall Receives Funding for Timber Construction

The Ministry of Municipal Affairs and Housing provided $4.42 million in 2023, including an 8% bonus for a new town hall built with a wooden structure, supporting Quebec's Wood Integration Policy in Construction.

Sources: www.quebec.ca

Government Consultations

Consultation on Lithium-ion Battery Requirements in Consumer Products

Health Canada is seeking comments until February 14, 2026, on proposed regulatory requirements for lithium-ion batteries and consumer products containing such batteries under the Canada Consumer Product Safety Act.

Sources: www.canada.ca

What We're Reading This Week

• Industry urges Ottawa to slash red tape as massive power gap looms: Canadian business leaders press for reduced regulatory barriers amid concerns over future electricity supply.
• 35 new jobs in Ingersoll an example of ‘reshoring production’ from United States, province says: Ontario highlights new manufacturing jobs tied to production moving back from the US.
• Canadian manufacturing PMI falls as trade tensions dent output, new orders: Purchasing managers index slips as global trade uncertainty affects Canadian manufacturing.
• Algoma Steel job cuts + Nicotine pouches: CBC's The Breakdown discusses job losses at Algoma Steel.
• Algoma Steel layoffs: A wake-up call for Canada’s industrial future: Analysis of the impact of recent layoffs at Algoma Steel.
• Layoffs are another wound inflicted by Donald Trump. But this is how Canada can rebuild its industrial base: The Toronto Star examines trade policy effects on Canadian manufacturing employment.
• Why a tonne of industrial carbon costs $95 in Alberta but credits sell for less than $20: CBC explains Alberta's carbon pricing mechanism and market dynamics.
• Powering the drive toward net-zero: Globe and Mail covers industry strategies for achieving emissions targets.

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