Canada's federal, provincial and territorial leaders have agreed to establish a new Federal-Provincial-Territorial working group aimed at improving cooperation on internal trade, energy policy and carbon market coordination.

During the First Ministers' meeting in Charlottetown, leaders discussed reducing barriers to labour mobility and internal trade, strengthening Canada's energy independence and improving coordination on national economic priorities.

The newly announced working group will examine different approaches to linking carbon markets across Canada and is expected to present a detailed work plan by July 2027. The Prime Minister also committed to working with provincial premiers to update Canada's carbon pricing benchmark before the end of 2026.

Beyond economic policy, First Ministers reaffirmed their commitment to improving public safety, responding to ongoing wildfire challenges and continuing discussions on long-term healthcare funding and productivity. Officials said stronger collaboration between all levels of government is intended to help Canada respond more effectively to national challenges while supporting sustainable economic growth.

Political analysts say the agreement demonstrates Ottawa's emphasis on cooperative federalism as governments work together on trade competitiveness, infrastructure, energy security and national resilience in an increasingly uncertain global environment.

The federal government indicated that additional meetings and policy updates are expected as the working group begins developing recommendations over the coming months.