From automotive parts to critical energy resources,
rail is the backbone of trade between two powerful economies.
Canada may be small in population but vast in geography and impact, and our railways connect industries and communities across North America. For over 150 years, we’ve powered progress—reliably, efficiently, and with the strength to meet every challenge. Rail doesn’t just move goods; it moves economies forward.
Facts
Canadian railways are the safest in North America.
Among the safest in the world, in no small measure because our railways reinvest 20-25 cents on every dollar they earn back into their networks.
Offer the lowest rail freight rates among leading trading nations, rates 11% lower than the U.S
Showing the robust competition that exists between Canadian railways.
Canadian railways move half of Canada’s exports – $380 billion worth of goods each year.
Rail dwell times remain consistently low while delays in other modes have ballooned.
In 2023 alone, railways moved $171 billion CAD worth of goods across the Canada and United States border.
The importance of this movement cannot be overstated, with goods ranging from automotive products ($73B), chemicals ($26B), and metals and minerals ($18B), to agricultural products and food ($18B), forest products ($13B), petroleum ($13B), and fertilizers ($5B).
#railmatters #factsmatter
Let’s Level the Playing Field.
Recent tariffs implemented by the Trump Administration and their impact on Canada are forcing us to examine the competitiveness of our economy. In response to these protectionist trade policies, we must take strong, intentional action to build the most resilient, competitive Canadian economy. While the trade of goods between Canada and the U.S. is significant and will remain vital for both countries, the ability for Canada to improve its competitiveness has never been more important.
Canada’s private sector investments have not kept pace with the U.S. or other OECD member countries. Many studies have documented that the most significant reason for that is the imbalance of Canada’s tax regime, which generates lower returns. Simply put, investing in Canada right now is not the best financial choice for many industries.
Also, the lack of certainty and length of time required to obtain project approvals hinders investment and economic growth. When deciding where to invest, confidence in the timing of project approvals is a critical consideration. Project timeline predictability allows investors to know at the planning stage when operations can start. Canada’s private sector supports the need for high environmental standards; however, current regulatory processes are too long, duplicative and unpredictable, particularly compared to other jurisdictions that are competing for investments.
Finally, supply chain reliability is critically important in the context of Canada’s trade-based economy. In the last two years, Canada experienced more than 62 work stoppages in the transportation sector alone, an unacceptable level of disruption. The frequency of these disruptions has tarnished Canada’s reputation as a reliable trading partner. Canada needs a better way to solve labour disruptions. We require a framework that encourages fair wages and working conditions and protects employees’ right to strike. At the same time, there must be a mechanism that protects all other Canadians, including other unionized workers, and the broader public interest, when collective bargaining fails at essential components of our transportation system (e.g., railways and ports). This new framework is required to minimize the broad economic damage caused by disruptions to Canada’s crucial supply chains.
To strengthen Canadian competitiveness, we strongly urge the incoming government to take the following action:
Recommendation 1Unlock Private Sector Investments
Unlock private sector investments through competitive tax policies that level the playing field with other jurisdictions, particularly the U.S., such as accelerated depreciation or investment tax credits on infrastructure and supply chain investments.
Recommendation 2Reform Regulatory Processes
Reform regulatory processes for the approval of infrastructure and major resource projects so that decisions are made quickly, with timing predictability clear from the outset, while allowing for adequate public consultation.
Recommendation 3
Modernize Canada’s Labour Laws
Modernize Canada’s labour laws to mitigate economic harm and improve supply chain reliability by establishing a clear and transparent process to resolve disputes rapidly in the transportation sector.
Supporting Partners:
- Canadian Federation of Agriculture
- Canadian International Freight Forwarders Association
- Chemistry Industry Association of Canada
- Fertilizer Canada
- Forest Products Association of Canada
- Freight Management Association of Canada
- Global Automakers of Canada
- National Maritime Group
- Railway Association of Canada
- The Mining Association of Canada
Reports
Rail Trends 2023
CPCS Study
