Canada must catch up to US on domestic manufacturing, says Robertson
(Image courtesy of CBC)
Gregor Robertson, Canadian Minister for Housing and Infrastructure, was asked about BC Ferries’ decision to buy four new ships from a Chinese firm as opposed to a Canadian one. Robertson, whose purview includes the Canada Infrastructure Bank, which helped fund the purchase of the Chinese vessels, said that the decision was “not directly related” to the Canadian government.
Robertson later went on to say that the Carney administration was looking “across government…at [a] Buy Canada policy” and that federal authorities would ensure that Canadian labour and materials would be prioritized.
Robertson gives US credit
However, in a rare statement of credence to the United States, Robertson stated that Canada historically “[hasn’t] been strong” on domestic manufacturing and that America has been much better on this issue. “When you compare Canada to what the US has done with Buy America, they've set a much higher bar, and we need to catch up and protect Canadian jobs and the Canadian economy,” Robertson said.
With the world becoming increasingly protectionist, Canada remains in a perilous spot. Looking at the share of manufacturing in gross domestic product (GDP) across the top 10 major economies, Canada ranks in the lower half.
Share of Manufacturing in GDP
Canada has very little leverage over America
Canada is also one of the top countries that trades the most with the Americans in terms of exports and imports proportionally. While having an integrated economy is not necessarily a bad thing, the current Canadian political climate shows that many Canadians want to sever at least some ties economically with the United States. However, what that will look like remains unclear for now.
Percentage of Goods Exported to US
Overall, the “Buy Canada” movement has the opportunity to redefine how Canada orients its economy in both the short and long term, making itself more self-sufficient. But it may be tougher than many in the government think.
