What’s at stake for Canadian business this election

After four years of Liberal leadership, we are three days away from major change in Canada. Despite campaign rhetoric, all political leaders have been silent on international trade and foreign policy. Canada is a trading nation and most dependent on exports for our total economy. Yet, all parties are appealing to voters' worries about significant household debt with promises of childcare subsidies, handouts for energy efficiency, and tax cuts. So why are political leaders avoiding a serious discussion on the economic challenges that confront Canadian exporters if small and medium sized enterprises are the backbone of the economy? The truth is we have no solid, long-term international trade and investment strategy, and no clear set of international policies and priorities to ensure Canadian competitiveness over the long term. Still missing from all parties are specifics on plans to lead Canada on the world stage and how Ottawa plans to support Canadian exporters and foreign investors looking to do business in Canada during periods of global instability or armed conflict. Despite a positive performance of the Canadian economy with strong job numbers over the last two years, ongoing geopolitical uncertainties, and trade issues continue to dampen exporter and investor enthusiasm. Millions of Canadians may be more concerned about their business balance sheets when they cast their vote—the owners of small- and medium-sized businesses across the country. Many Canadian SMEs are finding it more difficult to export and diversify into new markets than at any time. Almost half of G20 members have openly protectionist governments. This adds additional pressure on Canadian businesses that face a number of challenges such as trade financing and when it comes to selling their goods and services overseas. With the likelihood of a minority government, Canadian businesses are concerned about how soon they will know if any changes are set to take place, as it can take months to put a contingency plan in place. Canadian companies tend to be risk averse. The natural response to international trade and foreign policy uncertainty is deferring investment and choosing not to enter into new markets or to exit from existing markets. Until the election dust settles, and partly as a result of different geopolitical uncertainties affecting other markets and the real threat of armed conflict in Syria and the Middle East region, expect to see a quieter fourth quarter across Canada. Regardless of who wins, government and industry need to work together to design a new international trade strategy, for a world where America is losing its global influence, and we are constantly facing daily threats to Canadian interests and core values. If we keep contributing to the problem by approaching international trade and foreign policy with long-held ideologies and policy positions, many of which no longer fit in the technology age of instant information—Canada will become a "has been.” During times of crisis, Ottawa has focused on the immediate and the short term, which seems to typify a knee-jerk reaction. The positioning of Canada’s trade and investment policy needs to be forward looking and much more proactive addressing the most basic questions: What is the fundamental competitive position of Canada in the global economy? How can we strengthen Canada's competitive advantage in international markets? What are priority markets where Canada can diversify and increase exports and how can the Canadian government step up? What must we do to effectively attract the right type of foreign direct investment into Canada and increase/diversify level of exports overseas? Canadians hear too often the old divisive arguments among political parties; divergent point of views about China, Saudi Arabia, free trade, taxation, immigration, military intervention, and foreign ownership. The real issue is not saying who is right or wrong or pointing fingers and placing blame. Canada needs to focus on competitive reality, not defending past policies. What we need to do is improve conditions for all Canadian companies to succeed globally and attract a solid portfolio of foreign investment in key sectors of the economy. A new government will need to develop a global trade strategy and foreign policy that will allow Canada to go on offence, defend its economic interests against anti-trade rhetoric and ultimately provide more opportunity for Canadian exporters and investors alike. We simply cannot afford to leave Canadian companies facing more risks about the international business environment as they navigate increasing challenges. Canadian businesses and investors alike are watching and asking whether Canada is a trading contender or pretender, whether Canadian deals can be trusted, and whether Canadian leadership in the G7, G20, and the multilateral system will be enough to protect rules based international trading system. Bottom line: If the new government can put these pieces together in close collaboration with Canadian industry and execute, it can construct sustainable highways, not just a path, to generate significant economic growth and prosperity for Canadians. Omar Allam is a former Canadian diplomat, global trade consultant. and chief executive with global trade strategy consulting firm, Allam Advisory Group. The Hill Times

What’s at stake for Canadian business this election

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What’s at stake for Canadian business this election

Still missing from all parties are specifics on plans to lead Canada on the world stage and how Ottawa plans to support Canadian exporters and foreign investors looking to do business in Canada during periods of global instability or armed conflict.

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