Freeland promises to defend supply management, Carney vows to rein in government spending

Former central banker Mark Carney and former finance minister Chrystia Freeland are the front-runners in the race to be the next Liberal leader. (The Canadian Press)

With just two and a half weeks to go until the Liberals choose their next leader and the person who will replace Prime Minister Justin Trudeau, presumptive frontrunners Mark Carney and Chrystia Freeland made campaign stops on Wednesday.

Freeland, following a tour of a dairy farm in Waterville, Que., vowed to protect supply management in future trade negotiations with the United States.

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She also said the Canadian government should publish a list “today” of the counter-tariffs it’ll impose if U.S. President Donald Trump follows through on his threat to impose punishing levies on Canadian imports.

And Carney, in Scarborough, Ont., said Canada needs to bolster its economy regardless of the state of bilateral relations with the U.S., something he’s promising to do in part by “reining in government spending so that Canada can invest more as a country.”

Freeland vows to defend supply management

For her farm tour, Freeland was joined by National Revenue Minister Marie-Claude Bibeau, who’s announced she’s not running in the next federal election, because she plans to enter municipal politics.

Freeland told reporters she will “ferociously” defend Canada and supply management in future trade talks.

Trump has announced several rounds of tariffs on Canadian goods, including his initial executive order imposing 25 per cent levies on all imports and 10 per cent on energy, which come into effect as soon as March 4. He later announced there will be additional 25 per cent tariffs on steel and aluminum starting March 12. And last week, he announced he plans to charge reciprocal tariffs, a policy he called “the big one.”

A report from the Wall Street Journal in late January, meanwhile, stated those familiar with Trump’s thinking believe he’s using the threat of tariffs to push for an early renegotiation of the Canada-United States-Mexico Agreement (CUSMA), which is due for review next year.

For years, Americans have voiced discontent over access to the Canadian market, despite Canada agreeing to allow U.S. dairy farmers access to about 3.5 per cent of the domestic market as part of CUSMA, which was signed in 2018.

Freeland has tried to position herself as the best person to negotiate with the commander-in-chief, saying at the farm on Wednesday she “succeeded” in dealing with him during the last free-trade pact renegotiation.

“I am ready to defend Canada once again,” she said.

“I have a plan to do it,” she also said, adding Canada needs a “ferocious mother” to defend the country, which she believes she is.

On the list of American products Freeland believes the Canadian government should impose tariffs as a retaliatory measure, the former deputy prime minister said dairy products should be included.

Carney promises to ‘rein in spending’

Following a meet-and-greet with supporters in Scarborough, Ont., on Wednesday, Carney reiterated his plan to balance the government’s operational spending in three years.

Though he offered few details on costing, Carney did say part of his plan would include capping the size of the federal public service and reviewing program spending.

“We have looked, and there will be an appropriate point, if I’m selected leader, and move forward, to cost out directly and reveal those costings of the various measures that we put in place,” Carney told reporters, flanked by former cabinet minister Helena Jaczek and Small Business Minister Rechie Valdez.

“I look at the figures and the shifts in the level of public spending, and I can see opportunities for those savings, and above and beyond, opportunities to make horizontal savings,” he also said. “In other words, savings across government, much better use of information, data, technology and efficiency.”

Carney — who is the godfather of one of Freeland’s children — said at the core of his “new approach” to government spending, is “to spend less and invest more.”

Part of that approach will mean running a “small deficit on capital spending” — according to campaign press release — as a way to invest in and boost the Canadian economy.

The federal government ran a $61.9-billion deficit last year, which was $21.9 billion larger than the $40-billion deficit originally projected in last spring’s budget.

In a statement issued Wednesday, Conservative Leader Pierre Poilievre accused Carney of “planning to cook the books with a sneaky accounting trick” by saying he’ll balance the operating budget while continuing to run a deficit in the capital budget.

Poilievre said the move is “reminiscent” of Trudeau’s 2015 plan to run three consecutive deficits in order to boost infrastructure and investment spending. He also said he believes Carney’s plan will have “the same disastrous results” as Trudeau’s, pointing to the current affordability crisis and laying blame for it at the feet of the prime minister.

Asked about the threat posed by Trump, Carney said that “irrespective of the position of the United States, we need to build our economy.”

“We have tremendous opportunities to do that,” he added. “It starts from the government getting its house in order, being a partner where necessary, catalyzing many multiples of private dollars for any programs that the government is pursuing to drive private investment, creating room for that middle-class tax cut.”

Carney ahead on fundraising

The race for the Liberal leadership is down to five contenders, with former Bank of Canada governor Carney seemingly pulling ahead into the frontrunner spot.

New Elections Canada data from this week shows that as of Feb. 9, Carney is leading in fundraising numbers, with nearly $2 million, followed by Karina Gould with $236,075, Frank Baylis with $227,441, Freeland with $226,661, and Ruby Dhalla with $144,755.

But sources close to the Carney and Freeland campaigns have shared different numbers with CTV News.

According to Carney’s team, his campaign has surpassed $2 million in donations, while Freeland’s camp says she has raised nearly $600,000.

New data from Nanos Research, meanwhile, shows the Liberals narrowing the polling gap with the Conservatives. The polling firm has the Conservatives at 39 points, and the Liberals at 32, after about two years of a double-digit gap between the two.

And new numbers from Leger show the Liberals and the Conservatives would be neck-and-neck if Carney is chosen as the party’s next leader on March 9.

With files from CTV News Supervising Producer Stephanie Ha