TORONTO, March 27 /CNW/ - Canada needs a trade policy that recognizes the
increasing importance of global value chains, and the critical role of
Canada-US commercial and regulatory integration in gaining full benefit from
their exploitation, according to a study released today by the C.D. Howe
In Navigating New Trade Routes: The Rise of Value Chains and the
Challenges for Canadian Trade Policy, leading trade policy authorities
Bill Dymond and Michael Hart argue that Canadian trade policy is at sea, and
needs to reflect the new realities of international trade. They examine the
implications of emergent regional and global value chains for trade policy and
conventional trade agreements. Dymond and Hart find that as national
boundaries recede as key determinants in international exchange, the
instruments of trade policy and the agreements they have spawned provide
irrelevant and sometimes dysfunctional tools for states, and can yield
perverse results for contemporary trade and investment.
The authors conclude that Canada needs to move decisively to pursue a
bilateral initiative with the United States. They outline the components of
the initiative, including a new border regime, a joint regulatory agenda, and
the creation of the institutions and decision-making procedures required to
implement it. They argue the benefits to Canadians of such a re-ordered agenda
are potentially enormous.
The study is available at: http://www.cdhowe.org/pdf/commentary_259.pdf.
For further information:
For further information: Bill Dymond, Michael Hart, or Finn Poschmann,
Director of Research, C.D. Howe Institute, (416) 865-1904, email: