By Mathieu Dion
(Bloomberg) – National Bank of Canada executives called on Prime Minister Mark Carney to consider bold tax cuts and deregulation on the strategic sector to increase the country’s productivity and competitiveness.
“We need to pay less than the U.S. taxes,” CEO Laurent Ferreira said Monday night at the Canadian FinTech Forum in Montreal. The government should even consider a “zero tax policy” for strategic manufacturing and defense procurement, he said.
Ferreira, who leads Canada’s sixth largest bank since 2021, told listeners that the country’s productivity growth has been weak for a decade. “We need to wake up,” he said, also calling for less regulatory requirements in manufacturing.
“We need to be more competitive. It’s hard for us to attract capital. It’s hard for us to keep our business in Canada.”
Over the past few months, U.S. President Donald Trump’s tariffs have caused chills in Canada’s economy. GDP grew by 1.6% in the second quarter as exports and soft commercial investment declined.
Under the US-Mexico-Canada Agreement, most Canadian goods are still not subject to the new U.S. tax. But Trump’s tariffs have shaken the automotive, steel and aluminum industries, while the unpredictable results of new deals have left many companies waiting before investing.
“No one really knows how tariffs will affect the U.S., Canada and the growing deficits around the world are also a big problem in the bond market,” Ferreira said. “These are obviously uncertain, customers, businesses are pausing.”
Carney has pledged to release the federal budget on November 4 and make substantial investments to boost the country’s economy. The government reduced personal income tax in July, but has not shown that it is considering massive cuts in business taxes.
Canada is facing enormous budgetary pressure, partly due to increased military spending. According to median estimates in Bloomberg’s survey of economists, the deficit will be about $70 billion in the current fiscal year, accounting for more than 2% of GDP.
Despite this, Ferreira praised the federal and provincial government focus since the beginning of the trade war. “It’s an economic agenda and it’s very encouraging to hear everything they’re working on,” he said of the discussion with government officials.
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Last modified: September 23, 2025
