Letter to Global Affairs Canada on economic security consultations

September 23, 2024

Strategic Trade Policy Unit
Global Affairs Canada

125 Sussex Drive
Ottawa, Ontario K1A 0G2

Re: Public consultations on potential new measures to advance and defend Canada’s economic security interests

Good afternoon,

The Canadian Chamber of Commerce welcomes this consultation on measures to advance Canada’s economic security and supply chain resilience in the context of global economic and trade challenges.

The Canadian Chamber of Commerce is Canada’s largest business association, comprised of a network of over 400 chambers of commerce and boards of trade as well as more than 100 sectoral associations. Together, we represent over 200,000 businesses of every size, from all regions and economic sectors of Canada.

In response to a confluence of disruptive global forces – including the COVID-19 pandemic, geopolitical conflicts, rising protectionism, and climate change – economic security is increasingly a priority for governments as well as businesses around the world. Notably, the 2023 G7 Leaders Summit produced for the first time a dedicated Leaders Statement on economic resilience and economic security, emphasizing the need for strategic coordination of policies to reduce supply chain vulnerabilities and also counter malign practices. Many of our G7 and Five Eye partners, including the United States, the European Union, Japan, and Australia amongst others, have adopted significant new measures to advance their economic security. In today’s international landscape, Canada is at risk of being left behind if we do not take action.

Canada is a trading nation, with international trade being responsible for roughly two-thirds of our GDP. To ensure the Canadian economy’s competitiveness and resilience, the government must be prepared to apply an economic security lens to the threats and also opportunities we face with regards to global trade. The government must address major threats to Canada’s economic security in a strategic fashion and in close cooperation with impacted businesses.

At present, major threats to Canada’s economic security include heightened and growing geopolitical risks; growing protectionist sentiment in the U.S. and uncertainty regarding the 2026 CUSMA review; cyber threats; economic espionage, including persistent intellectual property theft and business sabotage from foreign actors; persistent non-tariff barriers that undermine Canadian firms’ access to foreign markets; and disruptions to Canada’s trade-enabling infrastructure.

Efficiency and speed of action in addressing these and other threats to Canada’s economic security is critical as the risks to our prosperity and security grow the longer Canada lags relative to its peers. However, any related measures to address these challenges should be targeted, oriented towards creating a fair and level playing field for Canadian businesses, and aligned with our key international partners. It is important that the government maintain a nuanced approach to economic security that avoids unwarranted protectionism or weaponization of economic activity.

Moving forward, the government should focus its measures on securing and bolstering the resiliency of critical supply chains, including those related to agriculture and agri-food, automotives, critical minerals, defence and aerospace, and life sciences. The government should also work to bolster Canadian capacity in areas that are key to advancing Canada’s economic resilience and productivity, such as artificial intelligence, cybersecurity, and R&D.

Additionally, the government must further invest in its intelligence and global strategic policy capacity, in order to better prepare and respond to the sophistication and volume of today’s global threats. It must also prioritize collaboration and information-sharing with Canada’s business community – a stakeholder group that has much to offer in terms of global know-how but that has yet to be fully leveraged.

For the government’s consideration, the Canadian Chamber is pleased to share the attached comments related to the government’s proposed policy measures and key questions for discussion outlined on the consultation webpage.

We urge that the government not only take steps to strengthen Canada’s economic security, but that the government also leverage Canada’s industrial strengths to bolster global economic security. As the international community looks to lessen its risk points for critical goods and services, Canada can and should be prepared to meet the demand by unleashing our trading potential as a leading source of agricultural products, critical minerals, energy, fertilizers, financial services, defence technology, and cybersecurity. The government should seize the opportunity to exercise Canadian international leadership by helping to secure the supply chains of our partners. Moreover, as Canada holds the G7 Presidency in 2025, the government should also be proactive in working towards setting the global agenda on economic security.

A resilient Canadian economy is good for Canadian businesses, workers, communities, and our trading partners. We look forward to continuing to engage with the government on this important issue and would be pleased to provide further information.

Sincerely,

Matthew Holmes
Senior Vice President, Policy and Government Relations
Canadian Chamber of Commerce

Cc:

The Honourable Mary Ng, P.C., M.P.

Minister of Export Promotion, International Trade and Economic Development

The Honourable Melanie Joly, P.C., M.P

Minister of Foreign Affairs

The Honourable Chrystia Freeland, P.C., M.P.

Deputy Prime Minister and Minister of Finance