TORONTO, May 7 /CNW/ - Canada needs to fully open its economy and drop
restrictions on foreign ownership in all business sectors including banking,
financial services and telecommunications, Preston Manning and Mike Harris say
in a new policy paper released today by independent research organizations The
Fraser Institute and the Montreal Economic Institute.
The two also call for eliminating Canada's supply boards and agricultural
subsidies, establishing a customs union and common external tariff with the
United States, and reforming Canada's approach to foreign aid.
The recommendations are laid out in International Leadership by a Canada
Strong and Free, a policy paper in which Manning and Harris argue that Canada
should redefine its international position by becoming the world's leading
proponent of free trade.
"If Canadians want this country to have a leadership role on the
international stage, we need to be champions of free trade and a role model
for the benefits of open markets and wealth creation. We must drop investment
restrictions, build on our relationship with the U.S. and change the way we
define and deliver foreign aid," Manning said.
"The market does a much better job of picking winners than government. To
allow the market to do its job, governments should stop protecting the losers
and eliminate business subsidies, ownership restrictions, and supply
management programs. That will encourage investments to shift to areas of
greater promise, leading to a more productive and wealthier Canada," Harris
said.
International Leadership by a Canada Strong and Free is the fifth in the
Canada Strong and Free series written by Manning, former leader of the federal
opposition and of the Reform Party of Canada, and Harris, former premier of
Ontario. Both men are now senior fellows with The Fraser Institute.
Canada lost ground as an international leader in the last decade as a
result of ill-considered choices, Manning and Harris write. Canada's foreign
policy failed to reflect the full range and depth of Canadian values and
interests. The country's contribution to international peacekeeping became
more rhetorical than substantive, and gratuitous anti-Americanism by some
Canadian leaders eroded relations with Canada's closest neighbour and largest
trading partner.
"Whatever else Canada's foreign policy for the 21st century entails, it
needs to work. If we are to lead and inspire others, our actions must
accomplish something. Talk is not enough," Harris said.
In their new paper, Manning and Harris argue that Canada can be effective
as a middle power by focusing our foreign policy on promoting free trade,
deepening our influence and relationship with the U.S., and finding ways to
deliver effective aid to nations in need. When it comes to promoting free
trade, they say Canada can't rely on rhetoric, but instead needs to open its
borders. They recommend:- Eliminating supply management and business subsidies; dropping
ownership restrictions in transportation, telecommunications, and
financial services; and allowing Canadian firms to become more
productive and competitive in international markets.
- Pursuing a customs union and common external tariff with the United
States, and using this process to lower remaining tariffs and reduce
cross-border transaction costs.On Canada's relationship with the United States, Manning and Harris point
out that Canada's place in the world depends heavily on our ability to gain
and exert influence in Washington, while the ability of our national
government to advance the security and prosperity of all Canadians depends
critically on working jointly with Americans.
"The inescapable factor is proximity. Like it or not, Canada lies
squarely within the U.S. security and economic perimeter. We may be more
comfortable with the economic aspects of proximity, but we must accept that in
the present climate, security is top of mind for the U.S.," Manning said. "In
order to protect our economic interests and maintain access to one of the
world's largest markets, we must reach joint agreements that would render the
border invisible to commerce."
Manning and Harris, while commending the federal government's recent
strengthening of Canada's military and defence capabilities, recommend:- Canada and the US work together to create a more open and secure
common border for the movement of people and goods.
- Canada's federal government revisit the decision not to participate
in the Ballistic Missile Defence program and not to broaden the
mandate of NORAD.
- Canada pursue the creation of a customs union involving a common
external tariff, a joint approach to the treatment of third-country
goods, a fully integrated energy market, a common approach to trade
remedies, and an integrated government procurement regime.On the issue of foreign aid, Manning and Harris write that Canada should
direct foreign aid at supporting policies and institutions with a proven track
record of increasing prosperity and improving people's lives.
They recommend:- Using the Tools of Wealth Creation approach as a centerpiece of
development aid that could equip poor people with resources to pull
themselves out of poverty. This approach includes broadening the
distribution of property rights, providing access to capital,
developing human capital, and providing access to technology and
trade markets.
- Reforming CIDA (Canadian International Development Agency) and
refocusing it on the Tools of Wealth Creation approach.
- Untying Canada's food aid from the requirement that it be Canadian-
sourced.
- Re-aligning Canada's aid and peacekeeping efforts to focus on Africa,
and increasing aid allocations to both conflict-prone nations and
post-conflict situations."The same weakness that crept into other areas of our foreign policy in
the past decade and a half-mistaking rhetoric and activity for results - has
infected our government's approach to foreign aid as well," Manning said.
"These policies will boost Canada's actions internationally while here at
home, providing more jobs with higher incomes, improving personal security,
and re-establishing Canadians' pride in this country as an international
leader," Harris said.
The Fraser Institute is an independent research and educational
organization based in Canada. Its mission is to measure, study, and
communicate the impact of competitive markets and government intervention on
the welfare of individuals. To protect the Institute's independence, it does
not accept grants from governments or contracts for research. Visit
www.fraserinstitute.ca.
The Montreal Economic Institute (MEI) is an independent, non-profit,
non-partisan research and educational institute. MEI is the product of a
collaborative effort between Montreal-area academics, economists and
entrepreneurs.
For further information: MEDIA CONTACT: To arrange interviews with
Preston Manning or Mike Harris, contact: Dean Pelkey, Associate Director of
Communications, The Fraser Institute, Mobile: (604) 828-1997, Email:
deanp@fraserinstitute.ca
