Canada punched above its military weight in Afghanistan

Trump criticism wrong

Photo: AP Photo/Apichart Weerawong

Canadian troops walk on the tarmac after disembarking from a military transport plane at Kabul international airport in Kabul, Afghanistan, in July 2003.

“We’ve never needed them. We have never really asked anything of them. You know, they’ll say they sent some troops to Afghanistan, or this or that. And they did — they stayed a little back, a little off the front lines.”

So said U.S. President Donald Trump recently, referring to America’s NATO allies, including Canada.

The comments have provoked outrage. British Prime Minister Keir Starmer called them “frankly appalling,” especially the insinuation that soldiers from other NATO states avoided the front lines in Afghanistan, leaving the most dangerous heavy lifting to American forces.

Anyone moderately familiar with NATO’s involvement in Afghanistan knows Trump’s insult is rubbish — especially when it comes to Canada.

The Canadian Armed Forces were deployed in some of the most dangerous regions and complex situations in Afghanistan for more than a decade, paying a heavy price in casualties — the heaviest since the Korean War in the early 1950s, when Canada also supported the American-led war effort and more than 500 Canadians died doing so.

What is less commented upon is Trump’s claim: “We’ve never needed them. We have never really asked anything of them.” This, too, is rubbish as far as Canada is concerned.

Twenty-three years ago, in fact, the U.S. asked Canada for something substantive and specific in Afghanistan and Canada delivered substantively.

The ask came from then U.S. President George W. Bush’s secretary of defense, the late Donald Rumsfeld, in January 2003. Famous for being sharp and precise with language, Rumsfeld invited Canada’s defence minister at the time, the late John McCallum, to the Pentagon to make a request.

I was in the room that day and I heard the ask from Rumsfeld’s own lips (I later wrote about this historic meeting in The Unexpected War: Canada in Kandahar in 2007 and again in 2025 in Chretien and the World: Canadian Foreign Policy from 1993-2003.)

Rumsfeld asked Canada to lead the International Security Assistance Force, a multi-national stabilization mission then confined to Kabul, the war-torn capital city of Afghanistan. Rumsfeld’s request was an extremely significant one for Canada to digest. It meant providing the largest contingent of troops — about 2,200 — as well as a brigade headquarters and command of the operation.

Rumsfeld emphasized how critical the leadership of that mission was from his perspective and how, in his view, Canada was better suited to take on the role than any other American ally.

Gen. Richard Meyers, chairman of the U.S. Joint Chiefs of Staff at the time, was also present at the meeting and reinforced Rumsfeld’s point that ISAF was key to the Kabul region and Canada was the preferred nation to lead it.

American forces, the defense secretary argued, needed Canada to stabilize Kabul, which was awash in war lords and militia and had no real functioning government at that point.

American forces, meantime, would be otherwise engaged in the invasion of Iraq (which began a few weeks later) and holding the line in southern Afghanistan, where U.S. troops were concentrated.

The Canadian military was needed to hold Kabul together and pave the way for scheduled Afghan elections in 2004, Rumsfeld said. Kabul was an extremely important and vulnerable flank in the American war effort, and Rumsfeld needed Canada to cover that flank.

The U.S. needed Canada. The American military needed the Canadian Armed Forces. So Rumsfeld asked Canada for help. Following that meeting, McCallum returned to Ottawa and dutifully presented Rumsfeld’s ask to then Foreign Affairs Minister Bill Graham, Prime Minister Jean Chretien, Canada’s military leadership and ultimately the federal cabinet.

It was not an easy ask for Canada to fulfil in terms of military capability, capacity and risk. Canada had never done anything like this before. It was, therefore, not an easy decision to make for the government of Canada and for the Canadian military to deliver.

But Canada answered the call from its closest ally, giving the U.S. exactly what it asked for and what it needed from Canada. And for the next couple of years, more than 2,000 Canadian Armed Forces soldiers were deployed into the dangers and instability of Kabul in what was known as Operation Athena Phase 1 Kabul, where they acquitted themselves exceptionally well — as Rumsfeld predicted they would. Three Canadian soldiers gave their lives during this phase from 2003 to 2005.

Trump needs to be briefed on Canada’s military heroism before he opens his mouth again on this file and Americans should understand that in the case of Afghanistan, they needed Canada’s help. Their government asked Canada for help and Canada delivered.

Eugene Lang is the interim director of the School of Policy Studies at Queen's University.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

Yu: Small business confidence steadies as B.C. inflation cools sharply

Cautious optimism

Photo: Pixabay

In B.C., confidence fell back after a surprise surge in December.

Small business confidence was roughly unchanged in January, according to the latest readings from the Canadian Federation of Independent Business.

The Canadian 12-month outlook remained unchanged at 59.5 points (a value above 50 indicates net business optimism). This was highest level since November 2024 and suggests businesses are cautiously upbeat about the year ahead, but levels remain relatively low given slow economic growth and trade uncertainty.

On a shorter three-month basis, businesses remain relatively pessimistic with an index value of 52.8 points after holding below 50 for the prior 12 months. Segments such as professional and business services (64.9 points), and health and education (61.3 points) are more optimistic, with a low in manufacturing (53 points).

This is not entirely surprising given ongoing trade risk impacting the latter, while greater optimism in the former could reflect increased AI adoption. Manitoba (65.1) and New Brunswick (63.3) recorded the highest index readings. Firms generally view the current business environment as satisfactory, with wage growth at 2.1 per cent over the next year and 2.6 per cent price growth.

In B.C., confidence fell back after a surprise surge in December. This was to be expected given much lower readings over the prior six to nine months. The index declined from 67.4 points to 56.7 points but held above levels seen in the summer and fall months, pointing to some improvement in sentiment. Short-term expectations fell back into negative territory at 46.3 points from 57.1 in December. On full-time staffing, B.C. firms remain downbeat with 12 per cent looking to hire, and 16 per cent looking to cut. Demand remains a key constraint to increasing production.

B.C. inflation declined sharply in December to 1.7 per cent year over year, which was down from two per cent in November, and compared to a 2.4 per cent national reading. This was the lowest rate in the country and B.C. was the only province to record a slower pace of inflation than the prior month.

While base year effects of the temporary GST/HST exemptions in 2024 contributed to upward pressure across the country, B.C. shook off upside pressure. Hospitality/accommodation costs fell sharply by 34 per cent after a Taylor Swift concert-induced surge in December 2024. Inflation excluding energy also declined from 2.5 per cent to 2.2 per cent while excluding both food and energy, it declined to 1.7 per cent from 2.1 per cent.

Food price inflation remains a key driver of consumer price growth in the province, rising by 5.2 per cent year-on-year in December following an increase of 4.2 per cent in November. Groceries like meat increased in price by 6.8 per cent while fish and seafood prices rose by 8.9 per cent during the period. Coffee accelerated from 23 per cent to 32 per cent.

The price of food purchased at restaurants also increased by 6.1 per cent.

In B.C., energy prices have continued to fall since March, down 9.2 per cent year-over-year in December, and an accelerated decline from the 5.8 per cent drop in the previous month. Gasoline prices fell 13.7 per cent compared to 8.3 per cent dip in November. Crude oil prices have fallen to a four-year low given continued oversupply in global markets, among other factors. Transportation costs, which tend to be affected by gasoline prices, decreased by 0.4 per cent.

Shelter costs increased 1.9 per cent year over year, down marginally from two per cent in November. Rented accommodation costs were up 3.3 per cent from 2.9 per cent, while owned accommodation prices fell to 1.5 per cent from 1.8 per cent. Homeowners’ replacement cost declined by 1.2 per cent, reflecting declining home values recently.

Clothing and footwear prices declined by 0.5 per cent while household operations, furnishings and equipment inflation accelerated from 2.9 per cent to 3.4 per cent. Growth in the price of goods slowed in December to 1.2 per cent from 1.7 per cent year-over-year in November. Service prices growth fell to 2.0 per cent, down from 2.3 per cent.

Bryan Yu is chief economist at Central 1

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

Shaw: B.C. risks losing food security race as Ontario, Alberta pull ahead

Food security in B.C.

Photo: GVBOT/Matt Borck/One Group Agency

Greater Vancouver Board of Trade president Bridgitte Anderson says B.C. risks losing food security funding and agri-processing investment to faster-moving provinces such as Ontario and Alberta.

B.C. risks falling behind provinces like Ontario on food security and agri-food investment if it doesn’t move quickly to boost agricultural production, business leaders warn.

Prime Minister Mark Carney made food security a cornerstone of his recent affordability announcement, not just by expanding the GST credit but with measures to boost domestic food production such as allowing producers to fully write off greenhouses.

Ottawa also announced a new National Food Security Strategy, and $150 million towards a Food Security Fund.

The shift is exposing how unprepared B.C. is to seize those federal dollars, said Bridgitte Anderson, president of the Greater Vancouver Board of Trade.

“This is an enormous opportunity for British Columbians,” Anderson said in an interview.

“The federal government has made it clear that we need to increase local food processing for a number of reasons. Food inflation is expected to rise again this year after several years of increases. We’re looking at structural weaknesses when it comes to local food processing.”

The emphasis on domestic agricultural production has ramped up since U.S. President Donald Trump began threatening tariffs last year.

Other provinces have moved faster and more deliberately.

Ontario has attracted around $1.5 billion in food processing investment since 2024 for everything from soy milk powder, to xanthan gum to ice cream.

Alberta has pulled in more than $500 million in similar investments, largely due to its Agri-Processing Investment Tax Credit, which provides a 12 per cent non-refundable tax credit for companies investing over $10 million into new or expanded agri-processing facilities.

“Alberta is another jurisdiction we’ve lost investment to,” said Anderson. “When you think about our local food processors, they have to truck their products to another jurisdiction to have them processed, and then bring them back. That doesn’t make any sense from an environmental perspective, from a transportation perspective or a cost perspective.”

In other words, provinces that hesitate risk watching capital and jobs move elsewhere.

“We have to be keeping step with other jurisdictions like Alberta and Ontario,” Anderson said. “The federal government has laid it all out there. B.C. just has to meet the moment.”

At the centre of the debate in B.C. is the province’s long-standing “50-50 rule,” a regulation that business groups say is increasingly at odds with the push for domestic food processing. It limits food production facilities within the Agricultural Land Reserve (ALR) to using at least 50 per cent of their source materials from the farm in which their facility is located.

Critics say it unnecessarily hamstrings farmers—preventing, say, a blueberry farmer from making mixed berry jam or a lettuce farmer from making mixed salad greens. Advocates say it protects ALR land from development, and preserves it for actual farming.

Premier David Eby has publicly suggested removing or changing it. Agriculture Minister Lana Popham has been more cautious, warning scrapping the rule outright could open the door to inappropriate development on farmland.

But Popham said she’s been working on a compromise that recognizes B.C.’s growing need to be food secure, grow the economy and expand production.

“It’s a complicated issue,” said Popham. “I think we’re going to have to change something.

“Do we want more processing? Absolutely. We’re going to try to land on something soon.”

Food production facilities make the most sense on low-quality agricultural soil, with access to water and near transportation hubs for workers, said Popham.

‘We’re not going to open up the entire ALR and say it’s an absolute free-for-all to build massive complexes on farmland,” she said.

“There will be a decision made that takes into account the value of farmland and food processing.”

She said there are investments in the sector coming in the next six months that will be positive.

On Ottawa’s greenhouse incentive, Popham said that could help a capital-intensive sector of B.C.’s economy, which is moving towards a 12-months-a-year growing cycle.

Expanding the greenhouse sector is part of the premier’s Look West economic plan released last year, which sets a 25 per cent goal for growing agriculture and food services over the next 10 years.

“I do know there are greenhouses going up right now,” Popham said. “I made some calls to the greenhouse industry and people haven’t quite figured out how [the tax incentive] works, but seem really excited about it.

“So anybody expanding right now, it’s going to be very positive.”

Still, the business community wants a more aggressive approach.

“The government has to make a change that will clearly demonstrate to investors that we are open for business,” Anderson said about boosting food production and removing the 50-50 rule.

“There is a race within Canada. I talk to my colleagues from other chambers of commerce and boards of trade all the time, and there is a race across Canada for each province to try and get these federal dollars.”

So far, it’s a race that B.C. appears to be losing.

Rob Shaw has spent more than 18 years covering B.C. politics, now reporting for CHEK News and writing for BIV. He is the co-author of the national bestselling book A Matter of Confidence, host of the weekly podcast Political Capital.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

Opinion: B.C.’s debt surge is no accident under Premier David Eby

Record per-person spending

Photo: Province of BC/Flickr

The deficits of Premier David Eby's government are diverting billions from public services, argue economists from the Fraser Institute.

The B.C. government plans to run a staggering $11.2-billion budget deficit in fiscal 2025-26, fuelling an explosion in government debt. To change course in the upcoming February budget, the government must rein in record-high spending levels.

In fact, according to the Fraser Institute’s new study, in 2025 the Eby government posted the highest level of program spending (on a per-person inflation-adjusted basis) in British Columbia since 1965 (latest year of comparable data), at $13,711. Premier David Eby also recorded the second-highest year of program spending (again, per-person inflation-adjusted) at $13,269 in 2024. (Raw dollar figures can be misleading because populations grow and prices rise. Adjusting spending for population and inflation strips out those effects so different years can be compared on equal terms.)

The Eby government’s record-high spending levels are fuelling budget deficits and skyrocketing provincial debt. Indeed, after you combine longer-term capital spending (e.g. on schools and highways) and program spending (e.g. social assistance), total provincial debt will surge from $89.4 billion in fiscal 2022-23, when Eby first took office, to $155.1 billion this fiscal year. In fact, Eby is adding debt faster (on a per-person inflation-adjusted basis) than any premier in B.C. history.

Why should British Columbians care? Because government debt comes with real consequences. For one, it means more and more taxpayer money will go towards government debt interest rather than services for British Columbians—debt interest costs will reach a projected $5.1 billion in 2025-26, which is more than twice the amount this government will spend on child welfare. And it may mean higher taxes in the future to pay for today’s debt.

Fortunately, there are some clear options to reduce spending and slow the pace of debt accumulation. B.C.'s public sector saw substantial growth under former premier John Horgan. Government jobs come at a significant cost—spending on total government employee compensation typically consumes half of all provincial spending in B.C.

There’s no mystery—Eby’s record-high spending is fuelling B.C.’s massive debt accumulation. If the government wants to change course and reduce this massive burden on the shoulders of British Columbians, in its upcoming budget it must reduce spending and the size of its bloated government.

Tegan Hill and Joel Emes are economists with the Fraser Institute.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.