From the Editor
In the Canadian legal market, the ‘Seven Sisters’, leading Bay Street Toronto, Ontario corporate firms, continue to dominate the marketplace. They are Blake, Cassels & Graydon LLP, Davies Ward Phillips & Vineberg LLP, Goodmans LLP, McCarthy Tétrault, Osler, Hoskin & Harcourt LLP, Stikeman Elliott LLP and Torys. The firms generally possess offices across the nation and abroad in such cities as London and New York, with the sole exception being Goodmans LLP, which is exclusively based in Toronto.
The Seven Sisters continue to face challenges from a wide range of competitors, including large domestic firms Borden Ladner Gervais LLP – a leader in Labour and Employment and Transport: Shipping; and Fasken, a top-tier firm in such areas as Energy and Natural Resources – Mining and Indigenous Law; and domestic multidisciplinary firms Bennett Jones LLP, which leads in such areas as Cannabis and Transport: Aviation, and Cassels, which remains a force in Mining.
In addition, other major international firms such as Dentons and DLA Piper (Canada) LLP remain key market players, as well as expanded domestic firm Gowling WLG, which boasts a strong global network, and such practice area specialists as construction experts Singleton Urquhart Reynolds Vogel LLP; Vancouver-based Nathanson, Schachter & Thompson, which brings strength to dispute resolution matters; and immigration firm Green and Spiegel LLP.
Law firms at the international and domestic levels continue to thrive, despite a national cloud of economic uncertainty. With over 75% of Canada’s exports flowing to the US, the impact of the Trump administration’s tariffs continues to be felt.
‘The jobs of workers in our industries most affected by U.S. tariffs — autos, steel, lumber — are under threat. Our businesses are holding back investments, restrained by the pall of uncertainty that is hanging over all of us’, said Prime Minister (and former Bank of Canada Governor) Mark Carney in October 2025, introducing a plan for Canada to double its non-US exports, ‘The U.S. has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression.’
The pre-budget statement was made weeks after global automaker Stellantis announced it would transfer production of one of its jeep models to the US, and G.M. unveiled plans to end Canadian production of its electric vans.
Though the 10th largest in the world (according to the International Monetary Fund), in August 2025, Statistics Canada reported that the economy had contracted in Q2 by 1.6% – the first slowdown of its kind in seven quarters.
However, despite overall slowing growth, the ongoing trade dispute with the US and a rising unemployment rate at 7.1%, manufacturing sales and auto production remain robust.
The overall economic impact can be observed across many key practice areas.
In Corporate and M&A, respondent firms reported a slowing M&A space, with US tariffs taking their toll on PE transactions. However, teams indicate deal flow remains substantial in such sectors as tech, finance, and oil and gas. The Seven Sisters remain at the top of the market in the practice area, followed by Bennett Jones LLP, Fasken and Norton Rose Fulbright.
In Capital Markets, equity markets were roiled by a lagging Q1 and 2. Respondent firms predict a resumption of growth when the tariff issue is resolved. Conversely, the Federal Government’s borrowing programme continues to grow, with gross bond issuance is projected to rise to C$316bn in 2025-26, up from C$241bn in 2024-25. Blake, Cassels & Graydon LLP remains a leader in deal value and count, Osler, Hoskin & Harcourt LLP and Stikeman Elliott LLP also display particular strength in the practice area. McCarthy Tétrault remains a port of call in the debt and underwriter-side space.
In contrast, the Construction segment, after years of decline, is forecasted to recover, with a market projected to reach about C$222.11bn in 2025, growing 3.9% year-on-year, aided by the Carney government with such announcements as the establishment of Build Canada Homes – a new federal agency that will build affordable housing. Borden Ladner Gervais LLP and Singleton Urquhart Reynolds Vogel LLP remain market leaders in the practice space.
The Energy and Natural Resources Mining area remains strong, in light of such developments as the announcement of a September 2025 merger between British mining multinational Anglo American with Canadian mining leader Teck Resources, to form a $53bn global copper group, and massive spike in the price of gold stemming from global economic uncertainty and a diminished confidence in the American dollar.
Cassels, Fasken and McCarthy Tétrault remain the leaders in the Mining space, as well as in the International Mining rankings.
In terms of major firm movements, a notable development was the closure of Stikeman Elliot’s Ottawa office in November 2025.
Mike De Luca
Editor, The Legal 500 Canada
