In addition, at a time when other countries were considering raising barriers to trade, Canada lowered them.
In Budgets 2009 and 2010, we eliminated 1,755 tariffs on manufacturing inputs and machinery and equipment, positioning Canada as the first country among its G7 and G20 partners to be able to boast that it is a tariff-free zone for manufacturing. This means that Canadian manufacturers will be able to import goods for further production in Canada without the burden of tariffs and the costs of complying with certain customs rules such as rules of origin and drawback. This is giving Canadian manufacturers a competitive advantage in the global marketplace by lowering production costs, increasing competitiveness and enhancing innovation and productivity. It is gratifying to note these efforts are being recognized. Canada was recently named
the top global destination for business by Forbes, the U.S. business magazine. The top ranking marked a rise for Canada from fourth place in last year’s rankings, in large measure because of our reduced tax burden. The magazine also ranked Canada in the top tier in protecting investors and in dealing with red tape – something our government has made a key priority – and highlighted that it is relatively easy to start a new business in Canada.
International leadership While Canada’s economic fundamentals remain sound, the risks to the global economy remain serious. It is crucial for
governments to work together in a coordinated effort to restore growth and confidence and to create jobs. Both advanced and emerging economies have important roles to play. At the height of the global financial crisis, the G20 showed
the international community that leaders could work together to deal with global instability. This organization must once again send a clear signal to the world that it is ready to take the strong actions necessary to maintain future growth and stability for all. Canada has taken a leadership role in this global effort, including securing a commitment from advanced economies at the 2010 G20 Summit in Toronto to fiscal plans that will at least halve deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016. In Toronto, the G20 agreed to four pillars of financial sector reform, including: a strong regulatory framework, effective supervision, transparent
international assessment and peer review. Many countries around the world are taking their cue from the Canadian model.
Other key accomplishments stemming from Canada’s international leadership this year include being instrumental in
shaping reforms to the global financial sector through such international organizations as the Financial Stability Board and the Basel Committee on Banking Supervision, and keeping global focus on the recapitalization of international financial institutions, allowing them to double their lending capacity and to be a central pillar of the global response to the financial and economic crisis. Our government remains focused on what matters to Canadians – creating jobs and promoting economic growth. While Canada has the strongest job growth record in the G7 with approximately 650,000 net new jobs created since July 2009 and the IMF projecting that we will have among the strongest economic growth in the G7 over the next two years, we are not immune from global economic turbulence. That is why we need to stay the course and remain focused on the economy.