Canada’s future economic growth depends on its trade infrastructure
Economic revival is a top priority for all Canadians. Almost two-thirds of Canada’s GDP comes from trade, but the country has fallen behind in building the trade infrastructure needed to capitalize on and expand into new global markets.
Understanding that Western Canada is the country’s “port of entry” to the vast and largely untapped Asian market, the Canadian Construction Association (CCA) has been working with stakeholders to build a business case for increased investment in the necessary enabling infrastructure.
Firstly, CCA, Export Development Canada (EDC) and the Western Canada Roadbuilders & Heavy Construction Association (WCR&HCA) jointly hosted an online roundtable discussion in September 2021 on the Western Canada Trade Gateways & Corridors Initiative (WCTGCI).
The proposed WCTGCI aims to boost domestic, continental and international trade, particularly in Asia, through a multi-year national program that brings both public and private investments to Western Canada’s multi-modal trade transportation network. That includes investments in existing trade gateways and corridors, plus the long-term build-out of new marine and inland ports as well as road, rail and air transportation assets that will support the freight and passenger flows required for international trade.
The next steps coming from the roundtable, which included leaders from regional industry associations, think tanks, port authorities and other organizations, will focus on advancing the business case for the WCTGCI. With estimates from the World Bank and World Economic Forum saying the reliability and readiness of Canada’s trade infrastructure has fallen from 10th best in the world in 2009 to 26th today, now is the time for substantial and sustained federal recapitalization of national trade gateways strategy and funding programs.
Canada’s trade corridor will play a big role in its economic future. Sustained, predictable, strategic investments in trade-enabling infrastructure will propel the country forward as a place for foreign investment. Building supply chain capacity, supporting innovation and emerging technologies, and eliminating red tape are also key to economic growth and stability.
Secondly, CCA recently met with the Canada West Foundation, a research group that is currently developing a report to define the issues facing Canada’s trade corridor and give recommendations with specific objectives to increase trade competitiveness.
The report will highlight the need to revitalize and scale up Canada’s trade infrastructure. Recapitalizing the corridor can help support the growth of the Canadian economy by allowing a more efficient and faster route to distribute goods across the country, connecting our exporters with the growing global middle class in Asia.
These two initiatives will provide the evidence-based support and form the foundation for a campaign to bring public attention to the importance of the Western Canada Gateway in Canada’s future economic growth.