The recent backlash of globalization could offer Canada a unique opportunity to increase its growth, says the Canadian Chamber of Commerce's CEO.
Faltering Transatlantic Trade and Investment Partnership (a free trade deal between the U.S. and the European Union) talks and threats from president-elect Donald Trump to pull out from Trans-Pacific Partnership negotiations, could allow Canada to position itself as a world leader in trade, says Perrin Beatty.
"Canada is extremely fortunate to have secured (CETA) as it positions us as the only developed country with preferential access to the world's two largest markets," he told the St. Albert and District Chamber of Commerce on Wednesday. "Moreover, it signifies our clear opposition to the growing trend of protectionism and division."
With the U.S. looking at building walls, trade and otherwise, American companies with subsidiaries north of the border will find it advantageous to ship into the EU from Canada. Canada could also provide the bridge from Europe into North America, and eventually between the Pacific Rim and the U.S. if Canada decides to open its own dialogue with Southeast Asia.
"This is a significant advantage to us," said Beatty.
That is, of course, unless Trump also decides to withdraw from the longstanding North American Free Trade Agreement (NAFTA) between Canada, the U.S. and Mexico.
During his campaign the president-elect criticized the deal, calling it "a disaster" and "the worst trade deal ever" signed by the U.S.
Through this rhetoric many Americans have started viewing trade with Canada as a threat, rather than a symbiotic relationship.
The U.S. consumes 70 per cent of Canadian exports. In return, nearly nine million U.S. jobs depend on trade and investment with Canada and Canada is the top export destination for 35 states.
While there is room for modernizing the 22-year-old agreement said Beatty, ultimately the U.S. election should serve as a reminder "of the importance, both to business and to government, to urgently diversify our global markets."
‘Delay is denial'
But trade agreements can only "open up the doors," said Beatty. Canadian businesses need to be able to get their product and services to market.
This requires significant investment in Canada's transportation infrastructure, including more efficient roads, ports, waterways, railroads, airports and, for Alberta especially, pipelines.
"Canadians are blessed with our immense natural wealth," said Beatty. "There are few countries anywhere that don't envy our vast resource inheritance, which we have both the ability, and I would argue, the responsibility to bring to global markets in a conscientious way."
The former cabinet minister told the crowd that if the government did not make decisions regarding pipelines soon, the country could miss out on key trade opportunities such as Japan – the single largest in the world for liquefied natural gas imports.
"Delay is denial," he said.
Beatty recognized that it would not be an easy or popular decision, but that approving the Energy East and Trans-Mountain pipelines was the only way to get the country out of its current growth slump, unlocking tens of billions of dollars in private sector investment.
"The role that we have as members of this Confederation is to ensure that all Canadians have the ability to get their products to market. It's a question of fundamental fairness," Beatty said to much applause from the local chamber audience.
