The late Canadian prime minister Pierre Trudeau once said that the

Canada-United States relationship

resembled “sleeping with an elephant. No matter how friendly . . . one is affected by every twitch and grunt.” Now, the elephant has tossed and turned, and Canada has finally woken up. This could be the watershed year in which we redefine our role in the global economy.

For much of its history, Canada has earned a global reputation for being a peaceful nation and trusted ally, but, more recently, a place where productivity falls, per capita gross domestic product (GDP) stagnates and investment is made difficult.

The country’s potential has always been there, thanks to one of the most highly educated workforces in the world, a strong and stable financial system and vast and untapped resources. Adding to this is Canada’s enviable place within the

North American

trade corridor, which provides access to the largest economy in the world via the world’s longest land border.

There is no question that the obstacles to being a natural resources powerhouse — a goal long characterized by more talk than action — have very much been of our own making. However, recent

U.S. tariff threats

have galvanized Canada to act with urgency.

At a time when polarization is increasing in many nations, Canadians are doing the opposite, coalescing and seeking to unlock the country’s economic potential. Government leaders from across the political spectrum are working together to safeguard Canada’s long-term prosperity so it never again feels cornered, economically or existentially.

Whether it is agreements to tear down internal barriers to trade that add eight per cent to 15 per cent to the cost of goods, reductions in red tape that have stood in the way of unlocking

Canada’s natural resources

or concerted efforts to reverse the recent decline in GDP per capita, Canadians are increasingly unified. My conversations with clients and business leaders from Canada’s largest companies reveal a renewed optimism; these leaders are ready to invest in the future.

Canada’s new prime minister,

Mark Carney,

was elected on a mandate to create growth and he is moving forward decisively. Carney calls it Canada’s “hinge moment.” His newly proposed legislation, known as the One Canadian Economy Act, will streamline approvals and speed the construction of major infrastructure projects, including

critical mineral

mines, pipelines, ports, highways, nuclear facilities, wind farms and carbon capture facilities.

The bill furthers the removal of long-standing

interprovincial trade

barriers, with provincial governments equally aligned in their ambition to get resources out of the ground and goods moving across the country. Indigenous rights holders will also be key partners through increased involvement in the development, stewardship and ownership of major projects.

At last, Canada is creating the conditions to build big infrastructure faster and more efficiently, and in a way that is sustainable and future-proof.

Canada’s natural gas

is produced in one of the most secure and stable jurisdictions in the world. As many countries rapidly shift away from a reliance on authoritarian trade partners like Russia, and markets look to diversify their critical mineral supply away from less reliable producers, Canada’s rich endowments of critical minerals are waiting to be unleashed. And within our own borders, sectors like electricity, transportation and clean technology are rife with opportunity for investment.

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A stronger Canada will make for an even stronger North America, which represents the second largest economic bloc globally. The next year will be critical as the country reorients its economy. A new economic trajectory for Canada will open doors for global trade and investment. The real hinge moment will be when investors wake up to this opportunity.

Scott Thomson is chief executive of the Bank of Nova Scotia. 

© 2025 The Financial Times Ltd.

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