July 30, 2010

Effective Trade Policy

It’s a deal that received virtually no fan-fare. In fact, you’d be hard pressed to find it even mentioned in a newspaper or television broadcast. Late last week, Canada’s Minister of International Trade, Peter Van Loan managed to do what previous governments have failed to do, he finally managed to win the battle over softwood lumber.

On Thursday the United States agreed to transfer the Softwood Lumber export charges to Canada. This means the revenue collected from this tax will stay in Canada and will be distributed back to the affected provinces.

This is welcome news to an industry hit particularly hard by the global economic crisis that we continue to battle. And it is a perfect example of what can be accomplished by a government that seeks negotiation over grandstanding and populist American bashing that has become the favourite sport for opposition parties.

The trade relationship between Canada and the U.S. is the strongest in the world. Not only is Canada the top export destination for 34 American states, but the U.S. is also the largest foreign investor in Canada and the most popular destination for Canadian investment.

The recent meetings between Minister Van Loan and U.S. Ambassador Ron Kirk were an opportunity to discuss ways we can enhance our mutual efforts to create jobs and generate prosperity for Canadians and Americans alike.

Our Conservative government is committed to open borders and free markets, while understanding that markets require prudent, transparent regulation and oversight. 

As evident at the G-8 and G-20 Summits, Canadians can count on their government to oppose protectionism and defend free trade on the world stage. Protectionist tendencies are the single greatest threat to long-term recovery for Canada, and indeed for the entire world economy.

When it comes time to defend our local companies, our government will always be there in a way that enhances our trade relationships and does not taunt our friends and neighbours.