Do other countries want business with Canada? Justin Trudeau begs world leaders for opportunities and to give Canada a chance.
The World Economic Forum, known as Davos, is an event, which attracts investors from all over the world.
Some of the biggest leaders in the world go to speak at the event and make a pitch for their country as being the best place for foreign investment.
PM Justin Trudeau is insisting this year that Canada is still a great place to invest for foreigners, but doubts over NAFTA and a slash in US tax rates makes his pitch hard to swallow for many of the investors that can be found at Davos.
NAFTA was a gamechanger and it has had a wide effect on the economy of the whole continent. With NAFTA’s future in doubt, Canada’s economic future is in doubt as well. The problem isn’t that people think that Canada’s economy will be destroyed if NAFTA talks fail – Canada’s economy isn’t that weak.
The problem is that the current business world in North America is shaped by NAFTA. The end of NAFTA would mean a changing of the rules and the way the world of business works on the continent.
Investors do not want to invest in a place whose future they don’t know. It isn’t until NAFTA is over (or renewed) and people know how things will go on that investors will trust Canada with their wealth.
The second problem, which may be even greater, is that US has greatly slashed cuts for corporations. While the move is being derided within USA because it will result in less taxes being raised, which will result in less services given to citizens, it does make USA more attractive for investors.
It remains to be seen what PM Trudeau will do to combat these big problems and convince investors to come to Canada.
Benjamin Diaz started working for Debate Report in 2017. Ben grew up in a small town in northern Ontario. He studied chemistry in college, graduated, and married his wife a year later. Benhas been a proud Torontonian for the past 10 years. He covers politics and the economy. Previously he wrote for CTV News and the Huffington Post Canada.