Advertisement

Canada’s Global Trade Options—Is There a Plan B?

  • Laura DawsonEmail author
Chapter
Part of the Canada and International Affairs book series (CIAF)

Abstract

This chapter argues that Canada’s trade diversification agenda provides Canadian traders with greater access and investment certainty in new markets but it cannot compensate for U.S. losses nor will distant markets ever fully replace less costly neighboring markets from an exporter perspective. While the NAFTA renegotiations and WTO shake-up are not taking place under circumstances Canada would have chosen, they should, nevertheless, deliver important reforms to a hidebound system. Meanwhile, the shocks to Canada’s trading system are shaking Canada out of a complacency built on a very comfortable U.S. trade relationship. In order to weather the short- and medium-term uncertainty, Canada will have to focus on leaner domestic economic policies including increased competitiveness and decreased costs for carbon levies, inter-provincial trade and permitting/regulatory waste. Externally, Canada will have to become more strategic in its trade relations with key trading partners: China, Mexico, UK, India and Japan.

References

  1. Albrecht, Lukas, and Trevor Tombe. 2016. “Internal Trade, Productivity and Interconnected Industries: A Quantitative Analysis.” Canadian Journal of Economics 49: 1. https://econpapers.repec.org/article/cjeissued/v_3a49_3ay_3a2016_3ai_3a1_3ap_3a237-263.htm.CrossRefGoogle Scholar
  2. Aliakbari, Elmira, and Ashley Stedman. 2018. “The Cost of Pipeline Constraints in Canada.” The Fraser Institute, May. https://www.fraserinstitute.org/sites/default/files/cost-of-pipeline-constraints-in-canada.pdf.
  3. Aliakbari, Elmira, Stedman Ashley, and Neils Veldhuis. 2018. “Canada’s Competitiveness Problems Go Beyond Carbon Tax.” The Fraser Institute, August. https://www.fraserinstitute.org/article/canadas-competitiveness-problems-go-beyond-carbon-tax.
  4. Bank of Canada. 2018. “Monetary Policy Report.” https://www.bankofcanada.ca/wp-content/uploads/2018/04/mpr-2018-04-18.pdf.
  5. Carberry, Robert. 2018. “Making a Good Thing Better: Finishing What Was Started and Leveraging NAFTA to Advance Canada.” Canada Institute, March. https://www.wilsoncenter.org/article/making-good-thing-better-finishing-what-was-started-and-leveraging-nafta-to-advance-canada.
  6. Dawson, Laura, 2018. “Global Rules of Digital Trade: Can We Adapt Bordered Regulation or a Borderless World?” Canadian Global Affairs Institute, February. https://d3n8a8pro7vhmx.cloudfront.net/cdfai/pages/3325/attachments/original/1521476468/Global_Rules_of_Digital_Trade_Can_We_Adapt_Bordered_Regulation_for_a_Borderless_World.pdf?1521476468.
  7. Export Development Canada. 2017. “NAFTA by the Numbers.” https://edc.trade/nafta-by-the-numbers/.
  8. Georges, Patrick, and Marcel Mérette. 2012. “Trade Diversification Away from the U.S. or North American Customs Union? A Review of Canada’s Trade Policy Options.” University of Ottawa Faculty of Economics Working Paper. https://pdfs.semanticscholar.org/3fea/ba4327fa71cccf4ad8151a643bd3462401ea.pdf.
  9. Goodman, Lee-Ann. 2008. “Nixon Tapes Include Testy Trudeau Chat.” Toronto Star, December 8. https://www.thestar.com/news/world/2008/12/08/nixon_tapes_include_testy_trudeau_chat.html.
  10. Industry Canada. 2018. “Trade Data Online.” https://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/home.
  11. Office of the Chief Economist. 2018. “Economic Impact of Canada’s Participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.” Global Affairs Canada, February. http://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/impact-repercussions.aspx?lang=eng.
  12. Office of the Parliamentary Budget Officer. 2017. “The Canada-EU Comprehensive Economic and Trade Agreement: A Prospective Analysis.” http://www.pbo-dpb.gc.ca/web/default/files/Documents/Reports/2017/CETA/CETA_EN.pdf.
  13. Proctor, Benn. 2017. “Fleeing to Canada on Foot.” Canada Institute, April. https://www.wilsoncenter.org/sites/default/files/fleeing_to_canada_on_foot_stca_final_04-04-2017.pdf.
  14. Stephenson, Sherry, M. 2017. “The Linkage Between Services and Manufacturing in the U.S. Economy.” The Services Coalition, April. https://servicescoalition.org/images/CSI_Site_Media/Services_and_the_Economy/PAPER_The-Linkage-between-Services-and-Manufacturing.pdf.
  15. Voice of America. 2018. “U.S. Blocks WTO Judge Reappointment as Dispute Settlement Crisis Looms.” August. https://www.voanews.com/a/us-blocks-wto-judge-reappointment-dispute-settlement-crisis-looms/4546302.html.

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Canada Institute, Woodrow Wilson International Center for ScholarsWashingtonUSA

Personalised recommendations