The Globe and Mail reports in its Saturday edition that much of the income Canadians earn comes, either directly or indirectly, through international trade. The Globe's guest columnist Timothy Lane writes that in this global environment, that task is becoming increasingly difficult. The number of trade restrictions and other interventions that harm trade worldwide has gone up sharply, with little action to liberalize trade. This is happening against the backdrop of heightened geopolitical stresses.
In addition, supply chain problems have led to calls for reshoring and friend-shoring, which, ironically have actually lengthened supply-chain issues.
Fortunately, global trade has not been declining, but trade deepening is no longer the engine of global growth it was at the start of this century. In this context, Canada's trade has been harmed by about 3,800 restrictive trade measures that other countries have introduced in the past 15 years, while Canada has implemented about 950 new trade-distorting measures of its own.
Trade has long been a source of competition and efficient specialization for Canada, and stalling international trade is surely contributing to our dismal productivity and weak per capita GDP.
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