The Canadian Prime Minister, Mark Carney, announced on Monday, April 27 the creation of a new Canadian sovereign wealth fund, comparing his country to Norway because of its vast natural resources, even if they remain more modest.
With an initial federal funding of 25 billion Canadian dollars, or about 15 billion euros, this fund which Canadian citizens can also participate in aims to reduce Canada’s economic dependence on the United States over the coming decades.
The amounts invested in this fund, named the “Canada Strong Fund” (“Fund for a Strong Canada”), will be used to finance projects related to energy, critical raw materials and infrastructure.
In total, 21 major national-interest projects have been announced in recent months by the Canadian government, aimed at strengthening an economy battered by the trade war with the United States.
While the details of the investments of the new Canadian sovereign wealth fund are not yet known, opposition parties denounce disguised subsidies to the oil and gas sector, while several oil and gas pipeline construction projects have already been announced.
For the Canadian official, the creation of this sovereign wealth fund will not only free the economy from dependence on the United States, but it will also allow Canadians to reap the benefits. “The United States has changed. It is their right, and we are adapting. It is our duty,” said Mark Carney in Ottawa, as his government prepares to conduct tense trade negotiations with the administration of U.S. President Donald Trump.
“To be clear, just as in the era of building the Pacific Railroad 150 years ago, most of these projects will be financed by private capital, and just as in the 1870s, the federal government will support them through loans, subsidies or any other assistance, so that these projects can benefit our economy beyond the profits of the private sector,” he adds.
