Throne speeches point to a government’s policy priorities. As such, it is good to see the references in today’s federal throne speech to reducing the restrictions on foreign direct investment and to “the aggressive pursuit of free trade.”
Carefully designed rules around foreign investment can help ensure that Canadian companies have the capital they need to thrive while assuaging fears of “foreign takeovers” and threats to national security. There is a lot of footloose capital in the global economy and the more of this that Canadian businesses can scoop up the better.
Canada has benefited greatly from freer international trade. The lack of progress on global free trade makes the case for Canada to pursue the bilateral free trade agreements mentioned in Throne Speech. This should not, however, undermine our commitment to truly open global trade.
Movement on the two “Fs” of foreign direct investment and free trade is an economically sound policy and one that should serve Canada well in the global economy.
Posted By: Robert Roach