Carney Ties Canada Immigration to Global Strategy at Davos

Carney links Canada’s immigration system to “third path” strategy in Davos speech

Prime Minister Mark Carney has positioned Canada’s immigration system as a central tool in a broader strategy to navigate what he describes as a fractured global order.

In a keynote address at the World Economic Forum in Davos on 20 January 2026, Carney argued that Canada and other “middle powers” face a choice between alignment with major powers, protectionism, or a cooperative “third path” based on flexible coalitions.

Federal immigration programs, including temporary and permanent residence pathways as well as labour provisions in trade agreements, are being framed as key instruments to advance this approach and support large-scale domestic investment.

• Carney used a Davos speech to outline a “third path” for middle powers in response to rising geopolitical tensions.
• Canada’s immigration system is being aligned with major infrastructure, housing, and resource development plans.
• Temporary Foreign Worker Program changes are focusing on in-demand occupations and regional labour needs.
• Express Entry selection is being recalibrated to emphasize critical infrastructure, healthcare, and social services roles.
• Free trade agreements and youth mobility pacts are expanding work permit options tied to international partnerships.
• New immigration streams are being explored for sectors such as agriculture, fish processing, science, and senior management.

Carney’s “third path” and the role of immigration

In Davos, Carney described a shift away from the post-Second World War “rules-based” system, saying major powers are increasingly relying on coercive tactics, protectionist measures, and zero-sum bargaining.

He stated that middle powers now face three broad choices: deference to larger powers, defensive economic nationalism, or a more flexible cooperative model he termed “variable geometry.”

This “third path” involves building issue-specific coalitions based on shared interests and values, and the federal government is presenting immigration policy as one of the levers to support that approach.

According to the government’s framing, immigration is being used both to staff large domestic nation-building projects and to operationalize labour mobility commitments embedded in trade and mobility agreements.

Immigration and nation-building projects

Carney has linked federal immigration measures to a program of significant investment in transportation infrastructure, natural resource development, ports, and residential construction.

Temporary and permanent residence streams are being adjusted to prioritize workers whose skills align with these projects, including trades, natural resources, construction, and key public services.

Temporary Foreign Worker Program targeting in-demand roles

The Temporary Foreign Worker Program (TFWP) continues to be a central mechanism for addressing short-term labour needs in specific sectors.

Recent policy directions have emphasized recruiting workers in occupations such as skilled trades, resource extraction, and healthcare, including measures that allow eligible spouses of certain workers to obtain open work permits.

For lower-wage positions, TFWP work permits are generally being confined to regions with low unemployment, reflecting a focus on areas where domestic labour supply is more constrained.

Higher-wage roles, including many classified as priority or in-demand occupations, remain accessible across all regions, enabling employers nationwide to hire foreign workers in these categories.

Post-graduation work permits and international students

International graduates are another key component of the federal labour strategy.

Holders of Canadian bachelor’s, master’s, and doctoral degrees are eligible for post-graduation work permits (PGWPs) that can last up to three years, giving them the ability to gain Canadian work experience after completing their studies.

Graduates of other post-secondary programs, including trade and vocational training, can also access PGWPs if their programs are on the federal list of eligible studies, which currently includes more than 1,000 programs linked to fields such as agriculture, skilled trades, education, healthcare, and STEM.

Intra-company transfers and corporate expansion

Multinational enterprises play a role in the government’s economic plans through the Intra-Company Transferee (ICT) work permit category.

This program enables employees of global companies to transfer to Canadian branches or to help establish new Canadian operations, facilitating the movement of managerial, executive, and specialized knowledge staff into the country.

New stream for agriculture and fish processing

Immigration, Refugees and Citizenship Canada (IRCC) has also signalled work on a dedicated foreign worker stream for agriculture and fish processing.

Such a stream is intended to respond to persistent labour shortages in primary production and processing activities that underpin both domestic food supply and export capacity.

Permanent residence pathways aligned with critical sectors

On the permanent immigration side, the federal government is tying selection more explicitly to roles considered essential for infrastructure, public services, and long-term economic growth.

Express Entry, the main system for managing economic-class permanent residence applications, is being adjusted to identify and prioritize candidates employed in these areas.

Express Entry focus on infrastructure and social services

Through category-based selection under Express Entry, IRCC has announced plans to give preference to occupations that directly support critical infrastructure and essential services.

These include trades such as mechanics, welders, and roofers, as well as a range of healthcare and social services roles, including nurses, massage therapists, and social workers.

The approach is intended to align long-term immigration intake with labour needs associated with construction, maintenance, public health, and community support systems.

Proposed new permanent residence categories

The federal government has also indicated it is examining additional permanent residence categories to be introduced under Express Entry.

Proposals under consideration include pathways targeting scientists, researchers, senior managers, and military personnel, reflecting an emphasis on leadership, innovation, and security-related occupations.

Any new categories would operate within the existing Express Entry framework, which ranks candidates based on factors such as age, education, language ability, and work experience.

Provincial and territorial alignment, including Manitoba

Immigration planning at the federal level intersects with provincial and territorial programs, which nominate candidates based on local labour market priorities.

Programs such as the Manitoba Provincial Nominee Program (MPNP) allow provinces to select workers, graduates, and business immigrants whose skills and experience match regional economic strategies.

These sub-national programs operate alongside federal streams and form part of the broader national approach to distributing newcomers across different regions and sectors.

International agreements and labour mobility

Carney’s “third path” also relies on expanding networks of trade and mobility agreements that include provisions for temporary entry of workers and professionals.

These arrangements are presented as a way to deepen economic ties with partner countries while facilitating targeted labour mobility.

Free trade agreements with labour provisions

Canada currently has 15 free trade agreements (FTAs) covering 51 countries, several of which contain specific chapters on temporary entry for business persons and professionals.

Agreements such as the Comprehensive Economic and Trade Agreement (CETA) with the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) include dedicated work permit categories for certain professional and technical occupations.

These provisions allow eligible nationals of partner countries to access facilitated work permit processes, often without the need for a labour market impact assessment.

According to federal planning documents, Canada is also pursuing additional FTAs with groupings such as the Association of Southeast Asian Nations (ASEAN), the Mercosur bloc, and Ecuador, which are expected to include or expand labour mobility components.

Youth mobility and International Experience Canada

Youth mobility agreements form another pillar of the international labour mobility framework.

Canada has concluded bilateral youth mobility arrangements with 36 countries, implemented through the International Experience Canada (IEC) program.

IEC provides time-limited work permits to young people, generally aged 18–30 or 18–35, depending on the partner country, across categories such as working holiday, young professionals, and international co-op.

These agreements are framed as tools to promote cultural exchange and to support labour needs in sectors that rely on temporary or seasonal workers.

Public relevance and ongoing policy development

The alignment of immigration policy with Carney’s “third path” strategy links Canada’s domestic labour planning with its international economic and diplomatic positioning.

Domestically, the focus on infrastructure, housing, natural resources, and essential public services is shaping both temporary and permanent immigration streams.

Internationally, trade agreements and youth mobility pacts are being used to structure labour flows with partner countries, consistent with the government’s preference for cooperative, rules-based coalitions.

Further program changes, including new work permit categories and additional Express Entry occupation groups, are being developed within this framework, subject to formal federal announcements and regulatory processes.

Readers seeking a broader understanding of these developments can monitor federal releases, provincial nominee program updates, and related coverage on Canadian immigration policy and economic planning.