BCBC Statement on the Prorogation of Canada’s Parliament

The Business Council of British Columbia (BCBC) is deeply disappointed by the Prime Minister’s request, granted by the Governor General, to prorogue Canada’s Parliament until March 24. Prorogation ends the current session of parliament, terminates all current bills that have not yet received Royal Assent, and ends committee work in progress. Put simply, Canada’s Parliament has come to a halt.  

If Canada’s minority government is defeated on a confidence vote after parliament resumes on March 24, a general election would necessarily follow. It is therefore conceivable that Canada may not have a sitting parliament in place until mid-2025 —a period of rudderlessness at the worst possible time. 

On January 20, the second Trump administration will begin in the United States. President Trump has threatened that, on his first day in office, he will impose a 25 per cent tariff on imports from Canada and Mexico until those countries improve border security around the trafficking of people and drugs. For Canada, this puts at risk around $600 billion in exports to the U.S. – representing about one quarter of our economy.  

If President Trump’s threat is implemented, University of Calgary’s Trevor Tombe estimates Canada’s GDP would be 2.6 per cent lower annually or $2,000 per person. Even if not implemented, intermittent threats around Canada’s access to U.S. markets – let alone President Trump’s latest proposal to annex Canada using “economic force” – undermines confidence for business investment in Canada and B.C.  

Moreover, the Fall Economic Statement, released on December 13, 2024, included $1.3 billion in additional funding for border security that might have helped address President Trump’s concerns. The prorogation of parliament means that this additional funding for Public Safety Canada, the Canada Border Services Security Agency, the Communications Security Establishment, and the Royal Canadian Mounted Police will not be in place – at least not in time to address the concerns of the incoming Trump administration.  

Adjusted for population, Canada’s economy has barely grown in the past decade. Canada had the second-lowest growth in real GDP per capita out of the 38 advanced countries in the OECD over the past five and ten years. Canada needs strong leadership to provide businesses with confidence to invest in our economy and to negotiate with the second Trump administration.  

Given the absence of federal leadership for the next few months, we urge provincial and business leaders to adopt a “Team Canada” approach with respect to managing our economy and our relationship with the United States. This will be crucial to navigating this uncertain period and safeguarding Canada’s economic interests.