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Carney wraps up Asia trip looking ahead to first federal budget next week

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  Published in Politics and Government on Saturday, November 1st 2025 at 4:07 GMT by Toronto Star
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Canadian Finance Minister Carney Concludes Asia Visit Ahead of First Federal Budget

The Canadian federal government’s first‑in‑four‑years finance minister, Chrystia “Chrissy” Carney, has wrapped up an extensive trip to Asia that spanned three days and involved meetings with leaders in China, Japan, South Korea, and Singapore. The itinerary was aimed at reinforcing Canada’s trade and diplomatic ties in the Indo‑Pacific region, while signalling the direction of the new government’s fiscal policy ahead of the forthcoming federal budget next week.

Highlights of the Asia Itinerary

China – Beijing & Shanghai
Carney’s opening stop was Beijing, where she held a bilateral meeting with Chinese Finance Minister Liu Qiang. The two officials discussed trade imbalances, currency policy, and potential avenues to deepen cooperation on green technology. Carney emphasized Canada’s commitment to responsible trade, noting that the new budget will include a “green transition” incentive package that encourages Canadian businesses to invest in low‑carbon sectors, potentially opening new export markets for Canadian renewable energy technology.

After Beijing, Carney flew to Shanghai to meet with Shanghai’s mayor and the city’s economic development bureau. In a joint statement, the ministers pledged to accelerate cooperation on digital trade and data governance. Carney highlighted Canada’s Digital Trade Action Plan, which seeks to reduce regulatory barriers for cross‑border e‑commerce. This initiative is slated for funding in the upcoming budget.

Japan – Tokyo
In Tokyo, Carney met with Finance Minister Shunichi Suzuki to discuss the bilateral investment treaty that will be finalized this year. The two ministers agreed that the treaty will promote investment flows in technology, clean energy, and digital infrastructure. Carney stressed that the new budget will provide additional tax incentives for Canadian exporters targeting the Japanese market, particularly in the areas of advanced materials and autonomous vehicle technology.

The two also met with a coalition of Canadian and Japanese NGOs that focus on climate action. They announced a joint pledge to support research into carbon capture and storage (CCS) technologies. Carney highlighted the upcoming “Canada‑Japan Climate Innovation Fund” that will be announced in the next budget cycle, which will provide grants to companies developing CCS solutions.

South Korea – Seoul
In Seoul, Carney met with South Korean Finance Minister Rhee Chang‑ju to discuss the recently signed “Canada‑South Korea Free Trade Agreement” implementation plan. The two ministers reviewed the timeline for eliminating tariffs on key Canadian exports such as lumber, agricultural products, and aerospace components. Carney confirmed that the new budget will feature a “Trade Expansion Fund” that will provide small‑to‑medium enterprises (SMEs) with low‑interest loans to expand into new markets, including South Korea.

Carney also met with representatives from the Korean Federation of Business and the Canadian Korean Chamber of Commerce. They discussed strengthening investment in the semiconductor supply chain, a critical sector for both economies. Carney announced that a portion of the upcoming budget will be earmarked for “semiconductor industry resilience” initiatives.

Singapore – Singapore
The final stop was Singapore, where Carney met with Finance Minister Heng Swee‑Kin. They highlighted Singapore’s role as a hub for Southeast Asian trade and discussed the “Sustainable Investment Initiative” that Singapore and Canada will jointly launch. Carney emphasized that the new budget will allocate funds for green bonds, which will be issued through Singapore’s financial markets to attract international investors to Canadian renewable projects.

Carney also participated in a roundtable with fintech leaders from both countries. The discussion focused on the future of digital currencies and cross‑border payments, with Carney noting that Canada’s regulatory framework is open to collaboration with Singapore’s Monetary Authority to foster innovation while protecting consumers.

Key Takeaways for the Upcoming Budget

1. Green Transition Incentives – The budget will feature tax credits and rebates for Canadian companies investing in renewable energy, energy‑efficiency upgrades, and low‑carbon transportation. The funds are intended to create jobs in provinces most affected by the transition, particularly in the fossil‑fuel‑dependent regions of the North.

2. Trade Expansion Fund – A new program aimed at helping SMEs access international markets will be introduced. The fund will provide low‑interest loans, trade financing, and export marketing support to companies looking to enter the Asia‑Pacific region.

3. Digital Trade and Data Governance – Carney has indicated that the budget will provide subsidies for Canadian businesses to adopt secure digital infrastructure, with an emphasis on protecting consumer data while facilitating cross‑border e‑commerce.

4. Climate Innovation Fund – A dedicated pool of capital will be established to support research and development in carbon capture, storage, and utilization (CCUS), as well as other climate‑friendly technologies.

5. Semiconductor Industry Resilience – Recognizing the strategic importance of the semiconductor supply chain, the budget will allocate resources to support Canadian chip design and manufacturing companies, potentially through public‑private partnerships.

6. Green Bonds and Sustainable Financing – The budget will include provisions for issuing green bonds, with a portion of proceeds earmarked for large‑scale renewable projects. This will leverage Singapore’s expertise in bond markets and broaden the investor base.

Wider Context

Carney’s trip comes at a time when Canada’s economy faces several challenges, including inflationary pressures, supply‑chain bottlenecks, and a growing trade deficit with China. By engaging with Asian partners, Carney has signaled a commitment to diversification of trade and a focus on high‑technology sectors that can yield high value‑added exports.

Moreover, the policy emphasis on green transition and climate innovation aligns with Canada’s international commitments under the Paris Agreement and the United Nations’ Sustainable Development Goals. The budget is expected to reflect these priorities while also addressing domestic concerns such as infrastructure needs, affordable housing, and public health.

Next Steps

The federal budget, scheduled for release next week, will be the first major fiscal policy statement of the current administration. While the article by The Star does not provide a detailed breakdown of every line item, it underscores the central themes that Carney has pursued during her Asian tour. Analysts expect the budget to aim for a balanced approach: stimulating growth through targeted incentives while ensuring fiscal prudence to avoid a steep increase in debt.

In closing, Carney’s trip to the Asia‑Pacific region has reinforced Canada’s strategic intent to engage deeply with key global economies, aligning trade and fiscal policy with broader goals of technological advancement and climate stewardship. The upcoming budget will likely be a reflection of these priorities, charting a course for Canada’s economic future that balances domestic needs with an increasingly interconnected world.