Amid Canada’s aspirations to be a global economic power, a new report from PwC Canada and the Canadian Chamber of Commerce says barriers in key industries are preventing the country from reaching its full potential. The report said the country has fallen short of fully achieving sustained economic leadership, competitive companies or globally scaled industries. That’s in spite of advantages such as natural resources, research institutions, an educated workforce, political stability and privileged access to global markets. “The big takeaway is that Canada is excellent at finding resources and creating IP. But now this is about making sure that we keep more of that value at home when it comes to processing, commercialization and scaling,” Anita McOuat, a national managing partner of clients and industries at PwC Canada, said in an interview. She added that barriers identified in the report are fixable and within Canada’s control to address. The report, released Tuesday, took input from business leaders and stakeholders in key industries including artificial intelligence, mining and critical minerals, energy, defence and agriculture. For the artificial intelligence sector, the authors said that while Canada was an early leader, there are financing gaps for companies in the growth stage. While Canada has robust geological resources, the report said relatively few projects move quickly — with new production sometimes taking 10 to 15 years. The report said the cost and time associated with constructing mines and processing facilities are obstacles to private investment. Despite Canada’s position as a major energy producer, the report highlights that 85 per cent of exports go to the United States and new infrastructure is needed for access to different markets. The report said that unless Canada reforms its defence procurement system and develops domestic capabilities, increases in spending could accelerate foreign purchases with fewer benefits to domestic firms. Prime Minister Mark Carney’s government is increasing efforts to boost defence spending and investment in the sector. For agriculture, the authors said there are opportunities in processing, ingredients technology and more. Across Canada’s economy, the report points to common barriers like slow regulatory permitting processes, limited capital for growth, costly infrastructure bottlenecks and more. McOuat said the removal of structural barriers could allow businesses to better deploy capital. However, the report says the next decade presents an opportunity for change as global demand for energy, critical minerals, food, defence and technology align with Canada’s strategic advantages. The report comes as trade tensions between Canada and the United States have intensified recently, prompting efforts to diversify the Canadian economy. “This is not about decreasing what we do with the U.S., but it’s about expanding our ability to do more domestically and with the rest of the world,” McOuat said. For Canada’s economy to reach its potential, the report’s authors said a new model of public-private collaboration may be required, with a more business-oriented public sector. The report said Canada is capable of producing “more global champions,” but market forces haven’t been sufficient in driving outcomes. “If structural barriers such as growth-stage capital gaps, slow procurement, fragmented policy support and limited domestic demand signals cannot be addressed quickly, governments may need to play a more active role in fostering globally competitive Canadian firms.” This report by The Canadian Press was first published Sept. 22, 2026. Daniel Johnson, The Canadian Press
