Mr. Speaker, the global economy is undergoing a rupture. Geopolitical threats are mounting, and countries around the world are grappling with severe trade disruptions and significant economic risks. This includes the ongoing conflict in the Middle East, which continues to disrupt global energy supplies, drive up energy prices and increase uncertainty worldwide. Canada, as we all know, is not immune to this turbulence. That is why we tabled Bill C-38 to extend the temporary suspension of the federal fuel excise tax.
As members of the House will remember, last spring our government temporarily reduced federal fuel excise tax rates to zero cents per litre. While that measure was set to expire on Labour Day, Bill C-38 proposes to extend it until January 31, 2027. Fifty per cent of the regular excise tax rate would then apply from February 1 to March 31, 2027. This means that Canadians would continue to benefit from lower taxes, saving 10¢ per litre on gasoline and four cents per litre on diesel, helping households and businesses manage transportation and operating costs.
For many small businesses, transportation and fuel costs remain a significant expense. Extending this relief measure will help businesses manage their costs while continuing to invest and create jobs.
However, supporting Canadians through the current challenges is not just about providing immediate relief. It is also about ensuring that our economy remains strong, competitive and resilient in an uncertain world. While new U.S. tariffs add uncertainty for Canadian businesses and workers, Canada is starting from a position of strength.
With a robust economy and a clear growth strategy focused on driving investment, increasing productivity, strengthening domestic industries and expanding access to global markets, Canada is well placed to respond to external pressures.
Domestic activity has remained strong and our continental supply chains have been more resilient than expected, thanks to the adaptability of Canadian businesses and the fact that CUSMA protections shielded approximately 85% of Canadian merchandise exports from recent U.S. actions.
The business climate in Canada has recovered, and companies are diversifying both their suppliers and their markets. The figures show that Canada has what the world is looking for. Canada leads the G7 in terms of per capita foreign direct investment inflows. Overall, real GDP grew by 1.9% in 2025, despite persistent global uncertainty.
The outlook for the future remains encouraging. A Statistics Canada survey shows that businesses plan to increase their capital expenditures this year, while the International Monetary Fund forecasts that Canada will post the second-fastest growth in the G7 in 2026 and 2027.
Since the start of 2025, Canada has created more than twice as many jobs per capita as the United States, with the majority of these jobs in the private sector. Things have really taken off since the start of 2025. At the same time, inflation averaged 2.1% in 2025, while wages have risen faster than prices over the last five years.
Overall, these results show that the Canadian economy continues to grow, attract investment and create jobs despite a highly uncertain global environment. These results are no accident. They are truly the result of work that enables us to strengthen the economy and prioritize affordability—