Info-Canada

Canada will have to become less reliant on the United States and shift focus eastward if it wants to remain competitive in today’s global market.

This is the argument put forth by many analysts such as Rana Sarkar, president and executive director of the Canada-India business council who recently wrote an editorial on the subject for the Globe and Mail.

In the editorial, Sarkar argues that the tendency to rely so heavily on U.S. trade and commerce is not a healthy strategy to take us forward. Recent events such as the world financial crisis and a thickening of the Canada-U.S. border are going to hinder the country if we are not more diverse.

“The hard truth is the underpinning of prosperity we’ve enjoyed over the past half-century, based on selling cars and resources to our nearest neighbor, is now looking precarious,” writes Sarkar. “Given the post crisis fundamentals, U.S. growth in perpetuity, and our easy access to it, is now far from guaranteed.”

The solution, Sarkar says, lies further East. The economic power of China and India are growing rapidly and are on pace to become by 2050 the first and third biggest GDP economies, respectively. For Canada, that signifies opportunities beyond the South.

Canada has two important advantages that will help it reposition itself for the new market, according to Sarkar. Firstly, there is the country’s ability to remain relatively stable during market fluctuations, due in large part to many resources we have, both natural and intellectual. Secondly, recent political events in the United States have allowed Canada to emerge as a competitive destination for international talent and trade.

However, in order for these advantages to be utilized to their maximum potential, political and economic strategies must shift. Sarkar argues that Brazil, China and India are where Canada’s policy experts need to focus.

Of particular interest to Sarkar is the potential of India, where the majority of the population is under the age of 35, and entrepreneurial spirit reigns high.

“Critically [India’s] growth is not driven by the state or exports, but by the collective energies of tens of millions of entrepreneurs and would-be entrepreneurs,” says Sarkar while pointing out that Canada and India place relatively low on each other’s policy radars.

A potential solution to that problem, offers Sarkar, is open trade – in services to start and then moving onto commodities. Canada must send a clear message to India that we are ready to open our immigration system and our learning institutions to attract attention toward our country.

Sarkar argues that the Government alone cannot accomplish this initiative. Canadian businesses need to recognize the potential of this as-yet untapped market and begin to pursue their own strategies that will bring our country into this new world market.

Source: Globe and Mail