How Trudeau missed a chance in Davos

Clever fox. Or so it seemed. In the middle of the NAFTA muddle, Prime Minister Justin Trudeau seized the moment of the World Economic Forum at Davos to announce that Canada has reached agreement on joining the U.S.absent, 11-member Trans-Pacific Partnership.

So we’re pro-global managed trade, and are on board now with a team that includes Japan, Singapore and others, but specifically does not include the tradeconfused American president. Donald Trump is still scheduled to speak at Davos later in the week. But wait. While the prime minister opened his remarks with trade, and offered a nod toward “progressive values in the context of globalization, “he then veered into a montage of greatest hits on gender parity, diversity, the imbalance of corporate boards, single mothers, the Canada child benefit, future women’s summits, the need for women in STEM, the urgency to create more middle class jobs. And much more.

The dissonance was stark.

This is a gathering for which Oxfam provided a notable curtain raiser, emphasizing ever-growing global inequity.

Point 1: the flow of generated wealth in the past year saw 82 per cent of new money heading to the richest 1 per cent while not a penny increase made its way to the 3.7 billion people who make up the poorest half of the world.

This is a gathering that on Tuesday hosted a session titled “Saving Economic Globalization from itself.” Sharon Burrow, general secretary of the International Trade Union Confederation, was a standout participant. “The current model has failed working people, “Burrow said, documenting the “exploitative model” of, for example, supply chains in the garment industry, with stitchers earning pennies.

This is a gathering that pondered how to build better capitalism. “The pendulum has swung way too far, “Henry Blodget, CEO of Business Insider, said in introducing the capitalism panel, which included Nobel economist Joseph Stiglitz. “Profits at an all-time high; wages at an all-time low.”

Theresa Whitmarsh, executive director of the Washington State Investment Board, with more than $100 billion (U.S.) in assets under administration, was sharp in insisting that shareholder concerns (making money) can be aligned with stakeholder duties. Fiduciary duty can be reconciled with societal commitments, she said, supporting a longer time horizon and eschewing the pressures of quarterly capitalism.

A point about that Oxfam report. One of the recommendations reads: “Require all multinational corporations to conduct mandatory due diligence on their full supply chains to ensure that all workers are paid a living wage, in line with the UN Guiding Principles on Business and Human Rights.”

Labour rights. Health and safety. Fair wages.

When Trudeau made the decision to launch his speech with his pat-on-the back trade announcement, addressing a global audience in a snowy clime, he should have felt duty bound to convey to his audience that Canada is set to deliver on its progressive promises. And how that will be accomplished. He could have started with, say, Vietnam, and how the TPP aims to ensure the right to organize for all those garment workers. Or how about Malaysia, also a signatory to the TPP.

Unless I missed it, Trudeau said not a word about the just-created Canadian Ombudsperson for Responsible Enterprise, announced last week with the feds chanting a “first in the world” mantra. Unlike its predecessor organization, this new CORE initiative will investigate allegations of human rights abuses in the extractive sectors, and garment too.

Trudeau gave a nod to Larry Fink, chairperson of BlackRock Inc., which has more than $5.7 trillion in assets under management. In Fink’s “sense of purpose” letter delivered to chief executive officers, Fink reminds corporations, both private and public, that they serve a social purpose. “To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society.”

Trudeau did deploy some timely watch phrases, acknowledging the ripple effect of uncertainty and inequality playing out across the world. “If you’re anxious, “he said to the crowd, “imagine how the people who aren’t in this room are feeling.”

Precisely. Too bad he failed to use the announcement of the TPP deal as his entree to explaining how Canada will define itself on the world trade stage. Jennifer Wells writes commentary for Torstar. jenwells@thestar.ca