Copyright 2008, Blake, Cassels & Graydon LLP
Originally published in Blakes Bulletin on International Trade, November 2008
On November 19, 2008, in a ceremonial speech delivered to Parliament by Canada's head of state, the recently re-elected government officially set out its blueprint of the broad goals of its mandate and how it intends to accomplish this. In this article, we examine the international trade and investment initiatives that the government intends to implement in its efforts to calm rough Canadian economic waters.
ECONOMIC FOCUS
In the speech, one concern trumped all others: the economy. This represents a marked departure from previous speeches in a post-September 11 environment, in which issues of national security have played a much greater role. Indeed, even those elements of the speech that were not directly driven by the current financial crisis bear the indelible mark of the crisis, such as the government initiatives on climate change, which tied environmental progress to a healthy economy.
TRADE AND INVESTMENT
The speech highlights the determination of the government to expand both trade and investment opportunities for Canada. The specific commitments with respect to trade and investment made in the speech include:
- proceeding with legislation to modernize Canadian investment laws
- working with the new administration in the United States in addressing shared challenges during the current economic downturn by seeking opportunities to enhance North American competitiveness
- pursuing new trade agreements in Asia and the Americas, as well as with the European Union, to increase the ability of companies to access investment opportunities both in Canada and abroad
- proceeding with legislation to ratify the results of trade negotiations that have been concluded with the European Free Trade Association, Peru, Colombia and Jordan
- continued investment by the government in expanding gateways on the Atlantic and Pacific coasts, and in vital border corridors such as the Canada-United States Detroit River International Crossing
- removing barriers to internal (within Canada) trade, investment and labour mobility by 2010, fixing what the government calls the "fragmented regulatory environment"
- investments by the government in new world-class research facilities
- proceeding with legislation to modernize Canada's copyright laws and ensure stronger protection for intellectual property
- banning all bulk water transfers or exports from Canadian freshwater basins
- implementing legislation to improve consumer protection (such as tracking and inspection) arising from the importation of food, drugs, toys, and other consumer products.
The government's message is clear: increase and expand opportunities for Canadian companies abroad and at home, and encourage foreign investments in Canada. The government proposes to achieve this goal by way of an aggressive agenda to negotiate new free trade agreements, deepening economic co-operation with the United States and reducing those internal Canadian regulatory barriers that multiply costs of doing business in Canada.
The commitment to expanding trade and investment permeated other areas in the speech as well. Trade- and investment-related initiatives that received prominent treatment in the speech include:
- reducing regulatory barriers that impede extending an oil and gas pipeline network into Canada's North
- making the procurement process a top priority stream, particularly with respect to military procurement
- strengthening financial oversight in Canada by working with the provinces to put in place a common securities regulator
- providing support to the Canadian manufacturing " sector, particularly the automotive and aerospace industries as well as the fisheries, mining and forestry sector to enable them to market products abroad and help businesses to innovate.
COMMENTS
This most recent comprehensive policy speech by the government bears the undeniable mark of the current economic crisis. The previous focus on national security – a dominating feature of speeches since September 11, 2001 – has given way to an overwhelming focus on the economy. Trade and investment stakeholders with a business and financial interest in Canada may benefit from this shift, as the government seeks to eliminate regulatory barriers and facilitate trade and investment arrangements.
The speech is, by tradition, policy and idea-focused. While a more detailed economic statement is forthcoming to provide specifics on how the government will approach economic and fiscal management, the speech itself provides a clear indication that, in exercising its mandate, the government intends to open Canada to Canadians and the world.
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