Terence Corcoran: Markets still prevail, from EVs to Anglo-Teck

Anglo-Teck was a test of Canada as a market economy, and it passed the test over the heads of Industry Minister Mélanie Joly and the Carney Liberals, writes Terence Corcoran. Photo by Cole Burston/Bloomberg files

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In a global world seemingly dominated by big government economic interventions and industrial policies fabricated out of the fantasies of politicians and bureaucrats — known as state capitalism — there are developments that suggest markets still prevail.

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Two such occasions, one Canadian and the other international, stand out as welcome signs that market realities dominate. In Ottawa, Industry Minister Mélanie Joly’s major — even embarrassing — backtrack on the $70-billion merger of Teck Resources and Anglo American shows that when the cards are on the table, governments must bow to private markets.

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Another victory for market reality over government central-planning fantasies is the political backtracking on electric vehicles and, more broadly, on climate policies in general.

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Ottawa ramps up Anglo-Teck approval

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A few weeks ago, Joly’s staff made a point of correcting a media report that the government’s Investment Act decision on the Anglo-Teck merger would be coming “next month.” Not true, said the minister’s staff. What Joly had said is that the decision would come “in the next months,” thereby pushing the deadline deep  into 2026.

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So why was the decision suddenly released this week, essentially within days rather than months? And, more importantly, what happened to all the minister’s blither about how the announced merger deal was not “enough” and that the new company should, among other things, move its primary stock listing to Toronto rather than London?

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Based on information released Tuesday by the companies, nothing significant has changed since Joly launched her not-enough statements. The new company has committed to a 15-year series of targets and spending plans, but nothing on the list would amount to a meaningful change in corporate intentions and strategy. For example, it commits to spending $4.5 billion in Canada over the next five years. Was Teck not planning such spending before this week?

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The sudden appearance of Ottawa’s decision follows the Supreme Court of British Columbia’s final approval of the merger on Dec. 12 and a massive majority vote by Teck shareholders approving the merger on Dec. 9.

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Ottawa’s sudden approval of the merger confirms the primacy of a market-driven investment environment over a planning-driven environment. Anglo-Teck was a test of Canada as a market economy, and it passed the test over the heads of Joly and the Carney Liberals.

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EV and climate policies face market forces

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Around the world, the speeding electric vehicle market is slowing down as market reality begins to overtake automobile sales. The biggest hit is taking place in the United States, where EV sales fell 42 per cent in November following the removal of government tax credits. Left to the mercy of market prices, sales inevitably declined.

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Globally, EV sales grew last month at their slowest pace (six per cent) since February 2024. At the same time, the European Commission this week unveiled a plan to relax the EU’s ban on new internal combustion-engine (ICE) cars beginning in 2035. The proposal was described by activists as the region’s “biggest retreat from its green policies in recent years.” EU automakers, however, argue the reduced target does not go far enough in light of market realities.