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. Also consider subscribing to our Manufacturing - Washington edition covering critical GR news south of the border.

Dates: 2026-02-22 to 2026-02-28

📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

Federal Government News

Canada and Germany sign declaration on auto, battery, and critical mineral cooperation

On February 24, 2026, the Honourable Mélanie Joly, Minister of Industry, signed a joint declaration with Germany's Minister for Economic Affairs and Energy, Katherina Reiche, in Berlin. The declaration expands bilateral cooperation in automotive and battery manufacturing as well as critical mineral supply chains. Key elements include expanding trade and exports of hydrogen-powered and electric vehicles (EVs) and deepening participation in each other's automotive sectors. The collaboration is aligned with Canada’s new automotive strategy, aiming for increased investment in EVs and positioning the country as a global EV leader. The declaration also commits to joint progress on supply chain resiliency and clean energy, supporting further sectoral integration between Canada and Germany.

Sources: www.canada.ca

Government launches consultations to strengthen the automotive remission framework

On February 27, 2026, Minister François-Philippe Champagne, Department of Finance, announced consultations to review and potentially strengthen Canada’s automotive remission framework. The consultations target ways to incentivize investment and production in the Canadian automotive sector and may adjust the tariff remission system for passenger vehicles manufactured in the United States. Feedback is sought from vehicle assemblers, parts producers, importers, and workforce organizations, with submissions open until April 13, 2026. The consultations are part of the auto industry transformation strategy first announced earlier in February and coincide with initiatives to boost electric vehicle and advanced manufacturing capability, integrate AI, and reinforce supply chain strength.

Sources: www.canada.ca

Federal investment targets forest sector retooling and diversification

On February 25, 2026, Minister Tim Hodgson, Natural Resources Canada, launched a $500 million national Call for Proposals to support forest sector transformation programs. This funding, under the IFIT, GCWood, IFI, and GloFor programs, is designed for companies to drive innovation, boost domestic wood demand, and advance the use of Canadian wood in construction. The programs aim to support Indigenous business participation and open new markets. An additional $2.8 million has been allocated to seven projects in New Brunswick and Nova Scotia, including mass timber expansion, clean fuel facility engineering, and life-cycle analysis studies at the University of New Brunswick. Projects also include technical trade portfolios to promote Atlantic Canada’s forest product innovations abroad.

Sources: www.canada.ca

Federal enforcement disrupts over one million kilograms of illegal waste exports

During Operation Demeter XI, which took place in the fall of 2025, Environment and Climate Change Canada in partnership with the Canada Border Services Agency intercepted 59 shipping containers holding over 1,200,000 kilograms of hazardous waste destined for illegal export. Materials seized included e-waste, used batteries, waste oil, hazardous scrap metal, PCBs, plastic waste, and contaminated scrap paper. The operation is part of a series of coordinated actions under the Basel Convention to prevent unlawful transboundary waste movement.

Sources: www.canada.ca

Advance estimates show decline in January manufacturing sales

Statistics Canada’s advance indicator estimates manufacturing sector sales fell by 3.3% in January 2026. The transportation equipment and machinery subsectors recorded the largest decreases. The data, released on February 24, 2026, signal a contraction in the early part of the year following shifts in sectoral demand and output.

Sources: www.statcan.gc.ca

Greening Government operations: Emissions fall, new projects funded

Treasury Board President Shafqat Ali reported on February 23, 2026, that federal government real property operations and conventional fleet emissions declined by 42.5% from the 2005–06 baseline, exceeding a 2025 target. Twenty-five new projects focused on reducing government operational emissions have been approved, covering ship and equipment fuel trials, recycling textiles, and HVAC energy recovery upgrades. More than $80 million has supported over 130 emissions reduction projects since 2019, supporting progress toward net-zero government operations by 2050.

Sources: www.canada.ca

Federal investment supports Indigenous circular economy project in Saskatchewan

PrairiesCan announced $855,000 in federal support on February 22, 2026, for Cowessess Ventures Ltd. to build a rapid composting and bio-fertilizer facility on Cowessess First Nation. The initiative, in partnership with B-Nature Biotech and Pro Metal Industries, combines organic waste management, local food production, and Indigenous-led manufacturing. The project includes development of bear-proof organics bins, composting infrastructure, and a greenhouse for year-round food production.

Sources: www.canada.ca

Federal support for Alberta AI adoption—upcoming announcement

On February 27, 2026, it was announced that Minister Eleanor Olszewski will attend an event on March 2, 2026, at Landing Zones Canada Inc. in Medicine Hat, Alberta. She is expected to present federal funding to support the commercialization of artificial intelligence-enhanced products, targeting the aerospace and defence sector. The funding supports Alberta’s technology and export capacity.

Sources: www.canada.ca

Data on December machinery and equipment prices released

Statistics Canada published the updated Machinery and Equipment Price Index for December 2025 on February 26. Manufacturers and industry stakeholders can access this data for insight into recent price trends for capital goods.

Sources: www.statcan.gc.ca

Annual and preliminary mineral production estimates available

Statistics Canada’s Annual Mineral Production Survey data for 2024, along with preliminary estimates for 2025, were released on February 25. The figures include production volumes for key minerals, providing industry participants with updated metrics for resource output and market planning.

Sources: www.statcan.gc.ca

Refined petroleum product statistics for January 2026

Data on production and inventories of refined petroleum products for January 2026 is now available from Statistics Canada. Stakeholders may request detailed datasets to inform procurement or supply chain assessment.

Sources: www.statcan.gc.ca

Provincial Government News

B.C. launches new mining and critical minerals testbed

British Columbia introduced a provincewide mining and critical minerals testbed under the Integrated Marketplace program. EMP Metals and Saltworks Technologies will trial lithium brine processing for battery-grade chemical production in the testbed’s first project.

Sources: news.gov.bc.ca

Alberta Budget 2026 supports workforce, industry, and resource development

On February 26, Alberta released Budget 2026, allocating substantial funds for skills development, post-secondary education, infrastructure, and the Innovation Employment Grant Program, while increasing investment in energy infrastructure and the Alberta Petrochemicals Incentive Program.

Sources: www.alberta.ca

Nova Scotia establishes Institute of Skilled Trades at NSCC

Amendments to the Community Colleges Act in Nova Scotia will facilitate the launch of the Institute of Skilled Trades at NSCC. An industry-led council will oversee dedicated trades programming to better align training with workforce needs.

Sources: news.novascotia.ca

Ontario backs life sciences scale-up with $5.8M for Kitchener firms

Ontario announced support for two Kitchener-based medtech firms under the Life Sciences Scale-Up Fund, facilitating production expansion and adoption of automation and AI for global scale-up of domestic manufacturing.

Sources: news.ontario.ca

Premier Houston promotes Nova Scotia’s critical minerals at international mining conference

Nova Scotia Premier Tim Houston will meet with federal and international partners, including Germany's ambassador, during the Prospectors and Developers Association of Canada conference in Toronto, to advance the province’s critical minerals strategy.

Sources: news.novascotia.ca

What We're Reading This Week

• CUSMA a ‘critical condition’ for increased Japanese auto manufacturing in Canada: Ambassador: The Japanese ambassador says greater certainty in North America trade agreements is pivotal for auto investment.
• $4.2B generated annually from manufacturing in Lethbridge area: report: New report assesses the Lethbridge region's manufacturing footprint.
• Advancing operational efficiency through sensor-based ore sorting: Industry explores how sensor-based technologies are improving mineral processing.
• Giant Containers Retained to Design, Deliver New Modular Structures for World-Leading EV Company: A Canadian firm wins a major contract for modular EV supporting infrastructure.
• Company based in Guelph steps in to make takeout containers greener: A Guelph manufacturer is supplying greener alternatives for the food service sector.

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