OTTAWA: With the election of Donald Trump changing the international policy environment, Canada needs to refocus its international trade and economic priorities, says the Conference Board of Canada. Its new report, Succeeding in the Age of Trump: Refocusing Canada’s International Trade and Economic Priorities, warns of the challenges posed by a protectionist US government mindset.
“Canadian trade with the US has flat-lined over the past decade, and a protectionist Trump agenda gives us a good reason to reconsider what is next for Canada in terms of international trade, investment, and immigration,” said Glen Hodgson, a Conference Board senior fellow. “While the Trump economic agenda keeps changing and is still being fully defined, it is bound to be challenging and Canada needs an activist policy response.” Refocusing would involve positioning Canada as an open, integrating hub for global trade and investment. It says Canada could be a preferred investment destination and trade enabler for global firms, offering tariff-free market access to both the US and the EU. Asian businesses could be attracted to invest more in Canada to gain duty-free access to both of these markets. That would require streamlining the investment review process; clarifying what constitutes a net benefit to Canada and aligning the investment attraction efforts of different levels of government. The report also recommends embracing a modernization of the North American Free Trade Agreement (NAFTA), by preserving past gains and advancing Canada’s its own agenda.
Priorities would include reduction of non-tariff barriers; free trade in services; more common regulatory standards, or mutual recognition of different approaches with the same intent; and designation as a preferred energy supplier within an integrated North American energy market. But Canada should continue to pursue free trade deals with other regions, notably Pacific Rim nations and Asia. This includes new bilateral and regional deals with a number of priority countries. A TPP without the US as one option. The report notes negotiations have begun with India, and other leading candidates might include Japan, Mexico (if NAFTA fails), the UK once Brexit is fully completed, and China under the right conditions. The report says trade development could also be enhanced with countries where bilateral free trade deals are in place, led by South Korea.
