This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning most types of manufacturing activities (except agricultural, automotive, aerospace, food, and pharmaceutical), e.g. textile and apparel, chemical, electronics, wood and paper, metals, plastics and rubber, packaging, and machining. Once a week, 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.

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Dates: 2026-01-26 to 2026-02-01

📋 In This Week's Newsletter

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

This Week's Parliamentary Calendar

• House Science and Research Committee to Review Mandates of Industry and AI Ministers: The committee meets February 5 (11:00 a.m. to 1:00 p.m.) with Minister Mélanie Joly and key department officials to discuss mandates for Industry and Artificial Intelligence and Digital Innovation.
• House Science and Research Committee: AI and Industry Mandates Review with Minister Solomon: Scheduled for February 2 (3:30 p.m. to 5:30 p.m.), Minister Evan Solomon will appear before the committee alongside Industry Department officials.
• Industry and Technology Committee: Draft Report on Productivity Gaps and Capital Outflow: February 2 (3:30–5:30 p.m.), the committee will consider a draft report regarding Canada's productivity gaps and capital outflow. Meeting will be in camera.
• Natural Resources Committee: Canadian Energy Exports Examination with Academic and Industry Witnesses: February 3, 11:00 a.m. to 1:00 p.m., the committee discusses Canadian energy exports. Scheduled witnesses include Normand Mousseau (Université de Montréal), Pierre-Olivier Pineau (HEC Montréal), Hon. Dan McTeague (Canadians for Affordable Energy), and Heather Exner-Pirot (Macdonald-Laurier Institute).
• Senate Banking Committee to Examine Bill S-3 Amending Weights, Measures, Electricity & Gas Acts: February 5 (10:30 a.m.), the committee is scheduled for witness testimony and videoconference review of Bill S-3 with Senator Toni Varone and representatives from Innovation, Science and Economic Development Canada, Electricity Canada, and Canadian Gas Association.

Federal Government News

Federal Court of Appeal Restores Plastics Listing Under CEPA

On January 30, the Federal Court of Appeal overruled a previous decision and reinstated the 2021 Order that added 'plastic manufactured items' to Schedule 1 of the Canadian Environmental Protection Act, 1999. This decision keeps the Single-use Plastics Prohibition Regulations in effect, enabling continued regulatory action on plastic pollution. Minister Julie Dabrusin stated the ruling equips the government with key tools for plastic pollution mitigation and aligns with the findings from the Science Assessment of Plastic Pollution. The move preserves the regulatory framework for restricting and managing plastics in Canada, directly affecting compliance obligations across plastics manufacturing and chemical sectors. Industry stakeholders can expect the government to proceed with further regulatory and market interventions attached to plastics lifecycle management, with interjurisdictional engagement ongoing.

Sources: www.canada.ca

Canada and Republic of Korea Sign MOU to Bolster Industrial Cooperation in Auto, Battery, and Critical Minerals

On January 29, Minister Mélanie Joly and Minister Jung-Kwan Kim of Korea signed a memorandum of understanding to deepen bilateral industrial cooperation. The MOU establishes the Canada–Korea Industrial Cooperation Committee and sets the groundwork for expanding collaboration in auto manufacturing, battery supply chains, critical minerals, and artificial intelligence. Canada will support Korean automotive industrial investments domestically, particularly related to electric vehicle (EV) production and vertical integration in battery manufacturing. The MOU is positioned to diversify industrial growth strategies, link key supply chains, and encourage cooperation in refined processing and recycling of Canadian battery minerals. Joint initiatives were announced to secure supply chain resilience and bring new investment to Canadian manufacturing, targeting new capacity in advanced industrial sectors.

Sources: www.canada.ca

Finance Department Opens Consultation on Broad Set of Draft Tax Measures Affecting Manufacturing & Resource Sectors

The Department of Finance launched consultations January 29 on draft legislative proposals covering previously announced and technical tax measures. Included are potential amendments relevant to manufacturers such as immediate expensing for manufacturing or processing buildings acquired from Budget Day and used before 2030 (with a four-year phase-out), extending CCUS tax credit designation flexibility to geological formations, and updates to the Clean Hydrogen investment tax credit regarding methane pyrolysis. The package also proposes changes in anti-avoidance rules, investment income deferral restrictions, mineral exploration expense clarification, and mandatory information reporting for non-profit organizations. Stakeholder feedback is invited by February 27, 2026. Changes would directly affect tax planning and capital investment models for facility upgrades, hydrogen production, and mineral development assets, as well as administration of new rebates and credits for resource efficiency.

Sources: www.canada.ca

Kap Paper Inc. Receives $7.5 Million in SRF Funding for Expansion Study in Northeast Ontario

Minister Mélanie Joly announced $7.5 million in Strategic Response Fund investment on January 31 to support Kap Paper Inc. in conducting a Front End Engineering Design (FEED) study. The study will evaluate criteria for developing a new medium-density fibreboard (MDF) facility, with the goal of maintaining operations in Kapuskasing, safeguarding jobs, and strengthening the regional forest products and manufacturing sector. The targeted MDF production facility is expected to enhance local supply chain continuity, enabling market diversification and further leveraging regional wood resources.

Sources: www.canada.ca

Canada Launches New Groceries and Essentials Benefit Plus Strategic Measures on Food Security and Greenhouse Expensing

On January 30, Secretary of State Randeep Sarai outlined the forthcoming Canada Groceries and Essentials Benefit, set to provide a one-time payment (50% increase over prior GST Credit value) and sustained 25% increases over five years to eligible individuals, contingent on Royal Assent. Additional measures include a $500 million allocation from the Strategic Response Fund to mitigate supply chain costs, a new $150 million Food Security Fund directed to SMEs, and immediate expensing provisions for greenhouses acquired after November 4, 2025 and used before 2030. The policy suite is designed to improve affordability and strengthen domestic food production, including targeted supports for supply chain actors facing direct input cost pressures.

Sources: www.canada.ca

Canada Boosts Atelier d’usinage Côté & Audet’s Capacity to Serve Pulp, Hydro, and Steel Sectors

A combined $2.05 million in federal ($1 million repayable funding) and Quebec ($1.05 million loan) support was announced January 26 for Atelier d’usinage Côté & Audet, enabling facility expansion and acquisition of new equipment for large-scale machining and welding. The investment targets productivity and output for the pulp and paper, hydroelectricity, and steel supply chains, supporting Quebec’s industrial competitiveness. The project is valued at $4 million and is anchored in CED’s Regional Economic Growth through Innovation program. Upgrades are planned to modernize production, increase export capacity, and solidify the company’s market presence.

Sources: www.canada.ca

Minister Hodgson Concludes India Trip: Steps to Formalize Critical Minerals and Energy Trade

Minister Tim Hodgson wrapped up a multi-day visit to New Delhi attending India Energy Week, re-launching the Canada-India Ministerial Energy Dialogue and advancing a joint CIMED Action Plan. Hodgson participated in high-level meetings with Indian officials, anchoring agreements for future Canadian energy and mineral exports, including formalizing a bilateral cooperation framework for critical minerals scheduled for further action at the Prospectors & Developers Association of Canada Convention in Toronto. Canadian energy and mining sectors are negotiating paths for long-term supply arrangements, joint ventures, and both conventional and clean energy investment channels.

Sources: www.canada.ca

Minister Hodgson Meets Indian Ministers on Critical Mineral Supply and Fertilizer Sector Collaboration

Separate sessions between Minister Hodgson and Indian officials (Minister of Heavy Industries H. D. Kumaraswamy and Minister of Chemicals and Fertilizers Jagat Prakash Nadda) on January 29 and 30 focused on securing long-term, reliable access to Canadian critical minerals—particularly potash, which supplies roughly 25% of India’s requirements. Discussions addressed supply agreements, strategic investment in resource development, and opportunities to deepen collaboration on mining, potash extraction, and nutrient management technologies. These ongoing negotiations position Canadian chemical and mining industries for extended export and technology investment relationships, serving India’s manufacturing and agricultural demand.

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

Minister Hodgson and Indian Commerce Minister Explore Supply Chain Opportunities for Wood Products and LNG

Minister Hodgson met with India’s Commerce Minister Piyush Goyal on January 29, presenting Canada’s capacity to supply critical minerals, LNG, and wood products to support India’s construction and manufacturing sectors. The bilateral talks addressed supply chain reliability, public-private partnership mobilization, and channels for investment in Canadian resource industries. The dialogue is expected to accelerate Canadian exports across energy and advanced material sectors.

Sources: www.canada.ca

Atlantic Canada Opportunities Agency Funds Modern Construction Projects and SMEs

ACOA announced nearly $13 million in funding January 29 in Fredericton, with support for 28 projects involving modular and prefabricated building methods across Atlantic Canada. A $1.8 million investment will back two projects at the University of New Brunswick’s Off-site Construction Research Centre, including testing new building techniques and advancing productivity for construction-related SMEs. These initiatives are anticipated to foster the adoption of technologically advanced manufacturing practices and diversify output within regional supply chains.

Sources: www.canada.ca

Environmental Protection Spending by Businesses Rises 17.4% to $32.2 Billion in 2023

Statistics Canada published data (January 27) showing Canadian businesses increased environmental protection expenditures to $32.2 billion in 2023, up 17.4% year-over-year. Resource management activities—including clean energy production, biomaterial procurement, and efficient energy use—accounted for 63.1% of spending, while 36.9% was directed at solid waste, wastewater, and air pollution management. These figures signal allocative trends in capital deployment for manufacturing and processing sectors, particularly those operating under increasingly stringent regulatory requirements.

Sources: www.statcan.gc.ca

Natural Resources Sector Outpaces Overall GDP Growth in Q3 2025

StatsCan’s Q3 2025 natural resource indicators report (January 28) recorded a 0.9% rise in sector GDP, outstripping the total economy’s 0.6% gain for the quarter. The rebound follows a 2.3% contraction in the previous quarter. The growth is reflected in higher output across supply chains for energy and advanced manufacturing, and could inform demand projections for raw materials and industrial inputs.

Sources: www.statcan.gc.ca

Provincial Government News

Ontario Secures $85M Investment from Massilly North America for Metal Packaging Facility

Massilly North America will construct a new metal food packaging facility in Brantford, sustaining 228 jobs and adding 50 new positions. Ontario's $5 million support via the Ontario Together Trade Fund backs expanded coil cutting and can production using Canadian steel.

Sources: news.ontario.ca

Alberta Receives Golden Scissors Award for Red Tape Reduction; $3 Billion Saved Since 2019

Alberta earned top marks from the Canadian Federation of Independent Business for eliminating nearly 220,000 regulatory requirements since 2019. The province completed over 700 initiatives, and passed its tenth red tape reduction bill in December 2025.

Sources: www.alberta.ca

Nova Scotia Modernizes Permit System, Cutting Regulatory Costs by $737,000 Annually

Nova Scotia is reviewing its 300 permits and improving regulation, eliminating low-risk permits and extending renewal timeframes, with overall business savings reported since 2021 at $21.5 million (net).

Sources: news.novascotia.ca

BC Introduces Fixed Permit Timelines for Mineral Exploration

Beginning April 2026, mineral exploration permits in BC will be processed in 40 to 140 days. The government is investing $3 million to expedite authorizations and enhance the Mineral Claims Consultation Framework following record exploration sector spending.

Sources: news.gov.bc.ca

Air Quality Approval Renewed for McCain Foods Plant in New Brunswick

New Brunswick has granted renewed Class 1 air quality approval for McCain Foods' Florenceville-Bristol facility. The approval is effective March 1, following a multi-month public review, and sets revised operating terms through 2031.

Sources: www2.gnb.ca

Government Consultations

Consultation on Science Approach for Chemicals in Plastics Open Until February 4, 2026

Environment and Climate Change Canada is seeking comments on the Science approach document for prioritizing chemicals in plastics. The consultation period closes February 4.

Sources: gazette.gc.ca

What We're Reading This Week

• Brantford, Ont. metal manufacturer investing $85M to create new food packaging facility: Massilly North America's expansion will increase local manufacturing capacity.
• TekniPlex to Showcase Next-Generation Sealing Innovations at Paris Packing Week 2026: Focus on advancements in packaging technology.
• How Canada can diversify its manufacturing and exports: Discussion on strategies for expanding Canadian industrial exports.
• Trump’s proposed tariff would also affect U.S. aircrafts manufactured in Canada: industry expert: Overview of U.S. tariffs’ implications for cross-border aerospace supply chains.

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