In a significant policy reversal, the federal government has effectively terminated its planned ban on the export of single-use plastics. The announcement was made quietly just before Christmas 2025, marking a notable shift from the environmental strategy championed by former Prime Minister Justin Trudeau.
Economic Realities Trump Environmental Goals
The government's rationale for scrapping the export ban, which was scheduled to take effect on December 20, 2025, centered on mounting economic pressures. Officials cited tariffs and supply chain issues as creating "significant pressure on the domestic economy." In a notice published in the Canadian Gazette, the government concluded that the environmental benefits of restricting exports would not be proportional to the economic damage.
The policy would have prohibited the export of items like plastic straws, cutlery, grocery bags, ring carriers, and stir sticks. The government's analysis found that banning exports would simply displace Canadian producers in the global marketplace without meaningfully reducing plastic pollution, as international customers would source the products from other countries.
A Domino Effect for Other Policies?
This logic has sparked commentary that it should be applied to other sectors of the Canadian economy. Commentator Jay Goldberg of the Consumer Choice Center argues that the same principle undermines other legacy policies from the Trudeau era.
He points to the federal government's historical reluctance to expand liquefied natural gas (LNG) production for allies like Germany and Japan, and the regulatory hurdles placed on new pipeline construction. The core argument is that if Canada does not supply these resources, other, less ethical producers will, harming the Canadian economy without a net benefit to the global environment.
The Domestic Ban Remains in Legal Limbo
While the export ban is now shelved, the domestic ban on single-use plastics, enacted in 2023, remains in effect but faces an uncertain future. The legal foundation for the ban was challenged when, in 2023, the Federal Court ruled that the government's move to designate plastic as a toxic substance was unconstitutional.
The federal government is appealing that ruling. If the appeal fails, the entire domestic regulatory regime engineered by former environment minister Steven Guilbeault could collapse. The decision to halt the export ban was made by Prime Minister Mark Carney, who took office after the 2025 election.
Critics of the domestic ban also question the environmental efficacy of alternatives. They note studies suggesting a paper bag must be reused 43 times to match the per-use environmental impact of a single-use plastic bag, while a cotton bag requires 7,100 uses.
The reversal on plastic exports represents a major policy domino falling. Observers now watch to see if this pragmatic, economics-first rationale will lead to further revisions in Canada's environmental and energy policies in the years ahead.
