Canada’s function in enhancing North American provide chain resiliency
Around the globe, the COVID-19 pandemic has uncovered weaknesses in world provide chains. Adjustments to shopper calls for, labor shortages, and different structural components have created an ideal storm of bottlenecks and back-orders. Households and companies world wide are feeling the influence, as the price of shopper items—meals, power, and every little thing in between—is rising. Russia’s invasion of Ukraine, in addition to different main geopolitical challenges, have since compounded this already troublesome scenario.
On this local weather of uncertainty, jurisdictions world wide are on the lookout for stability and predictability. They’re turning to their most trusted allies, selecting to localize manufacturing capability in places with companions who’re dependable, protected, and safe. As members of the world’s largest free-trade zone, Canada, the USA, and Mexico know that they haven’t any higher mates than one another. Since 1994, free commerce agreements amongst our three nations have raised the fortunes of all North American companies, employees, and households, as our economies have develop into extra built-in and affluent.
By working collectively to enhance the reliability and fluidity of our provide chains, we’ve got an opportunity to grab the second and improve the general North American worth proposition–and every companion has a job to play. Domestically, Canada is making strategic investments in key sectors to make important provide chains extra accessible and safe. Our Crucial Minerals Technique, for instance, is securing the important thing inputs in batteries and semiconductors wanted to assist the world’s transition to the inexperienced digital economic system of the long run. In world markets pushed by demand for microchips and batteries, Canada’s crucial minerals, coupled with our repute as a protected, dependable, and safe provider of products and companies, make us the strategic companion of alternative. That’s the reason we’ve got already secured investments from globally main corporations, together with battery producers, and proceed to place into place a home battery ecosystem that may assist meet the worldwide demand for cleaner transportation options.
After I was in Washington just lately for a gathering with U.S. Secretary of Commerce Gina Raimondo, we mentioned, amongst different issues, our dedication to enhance provide chain safety in North America, together with within the semiconductor business. This contains work to strengthen home analysis and improvement, commercialize rising applied sciences and improvements, and ramp-up manufacturing capability in each nations to assist our mutual targets for provide chain resilience and business competitiveness. The Canada-U.S. Provide Chain Working Group, launched in 2021, can be central to our efforts to strengthen provide chain safety and reinforce the deeply interconnected and mutually useful North American financial relationship.
I used to be additionally happy to launch the Canada-Mexico Excessive-Degree Financial Dialogue in August. This was a possibility to debate ways in which we will strengthen our North American aggressive benefit via enhanced collaboration and cooperation. We additionally mentioned the significance of provide chain resiliency as a way of fostering a extra collaborative enterprise setting and dealing with the non-public sector to reinforce financial ties. Strengthening our aggressive benefits as USMCA economies additionally requires us to develop our shared innovation ecosystems. On this regard, we additionally mentioned methods to extend analysis collaboration to fulfill the complicated challenges of our age.
As a buddy, neighbour, and trusted companion, Canada is properly positioned to assist strengthen North America’s provide chain resiliency and business competitiveness. What’s extra, we will take delight in figuring out that our highly-integrated North American economic system, based and constructed upon the rules of transparency, diversification, safety, and sustainability, permits us to supply a superb worth proposition in world markets. Canada will proceed working with like-minded companions—particularly our North American mates and neighbours—to assist construct a cleaner, greener, and extra resilient world economic system that’s based on the rules of free and open commerce that has served us all so properly.