GLOBAL TRADE BALL IN CANADA’S COURT

The federal government has an “economic imperative” to reject anti- trade sentiments and instead position Canada as a “global trading hub,” an economic advisory council says.

The Advisory Council on Economic Growth on Mon- day recommended a series of steps the federal government must take to “jolt” the Canadian economy into a faster pace of growth. The council, a 14- member body hand- picked by federal Finance Minister Bill Morneau, has previously said it wants to boost the average Canadian household income to $105,000 a year by 2030, up from a current forecast of $90,000.

Canada’s rich natural resources, geographic position, skilled labour force and stable political climate make it an idyllic trading partner, the council states. Canada should therefore work to improve the North American Free Trade Agreement, enact the Canada- E.U. Comprehensive Economic and Trade Agreement, and pursue bilateral trade deals in Asia, particularly with Japan, China and India, the council said.

“We’re a small trading nation. We have to take more control of our own destiny,” said Dominic Barton, chair of the council.

The council’s pro- trade stance flies in the face of t he protectionist vision held by Canada’ s largest trading partner, the United States. U.S. President Donald Trump was elected on a promise to do away with trade agreements and policies that he says result in jobs leaving the U.S.

Canada is set to enter talks with the new Trump administration that could update NAFTA. Barton said Canada should “double down” on NAFTA and strive to come out of those talks with a deeper trading relationship with the United States. Canada could improve transportation infrastructure across the U.S. border. Canada could also harmonize regulations to better integrate supply chains.

“We still see lots of opportunity, despite all the protectionist talk,” Barton said.

Boosting trade is just one of several recommendations in the council’s second report since it was formed 10 months ago.

For example, the council calls for the government to join with the private sector to create a venture fund to fill a $ 400- million to $ 500- million capital shortfall for early stage startups.

It also says Canada needs to boost labour force participation by encouraging people to work beyond traditional retirement age, by engaging more indigenous and lower income Canadians in the workforce and by setting up a national day care system that would enable more women with children under 16 to join the labour force.

While the report calls for more trade within NAFTA, it also recommends Canada seek stronger trading ties with other nations — among them China. “I think it’s the right of every country to be able to have a diversified trading relationship,” Barton said.

Trump has accused China of sip honing off U.S. jobs. Barton rejected the view that globalization is the sole cause of manufacturing job losses.

“I would argue that technology has played more of a role than trade,” Barton said. “That could come our way, too, if we aren’t skilling our people quick enough, properly enough, to be able to have good jobs.”

The council proposes Canada set up a “Future-Skills Lab” that will help “upskill and re-skill” workers so they can keep pace with technological change. The lab would be a national arm’s length body that would study how to identify skills gaps in the labour market.