How Canada can help repair the fragmented global economy

Opinion: The global economy has become fragmented. Here’s how Canada can help repair it

“The Global Economy: Canada’s Opportunity to Shape the Future of Trade”

The global economy is facing fragmentation, largely due to the lack of adaptation from international trade and finance governance institutions. Despite these challenges, Canada has a unique opportunity to play a significant role in repairing the global trading system.

Canada’s Leadership in the CPTPP Commission

This year, Canada holds the chairmanship of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Commission. This agreement encompasses free trade between Canada and 10 other countries in the Indo-Pacific region. As the chair, Canada has the chance to steer the global economy towards a more open, rules-based trading system by setting standards for new applicants and promoting economic cooperation.

The Importance of Renewing Global Institutions

Efforts to revitalize existing global institutions are crucial in promoting the benefits of trade and investment among economies. Institutions like the CPTPP pave the way for countering economic fragmentation caused by rising tariffs and trade restrictions in recent years. The CPTPP, as a “next generation” trade agreement, builds upon World Trade Organization rules and strengthens global trade rules.

Challenges and Opportunities for Expansion

Several countries, including China, have applied to join the CPTPP. China’s potential entry could significantly boost global GDP and increase global incomes. However, ensuring that China meets the high standards set by current members poses a challenge. Upholding criteria such as eliminating trade barriers, protecting foreign companies, and promoting fair trade practices is essential for maintaining the integrity of the agreement.

Canada’s Role in Promoting Broad Accession

As the chair of the CPTPP, Canada has the responsibility to facilitate discussions on the inclusion of new members like Costa Rica, Uruguay, Ecuador, and Ukraine. Additionally, engaging with countries like South Korea, Indonesia, Philippines, and Thailand, who have shown interest in joining, is crucial for expanding the agreement’s reach.

Shaping the Future of Global Trade

Canada’s leadership in the CPTPP presents an opportunity to champion inclusive institutions and promote global economic integration. By advocating for broad accession to the agreement, Canada can contribute to sustaining a transparent and open trading system.

In conclusion, Canada’s role in the CPTPP is not just about economic cooperation but also about shaping the future of global trade. Embracing the long-term goal of broadening the agreement and welcoming new members is a step towards fostering a more interconnected and prosperous global economy.”



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