Canada is in a competitiveness crisis, highlighted by a steep decline in foreign business investment, says the president of free-market think tank the Fraser Institute.
Speaking to Business in Vancouver ahead of next week’s Tri-Cities economic summit, where he will deliver the keynote speech, Niels Veldhuis said Canada has suffered “a collapse in business investment, both by Canadian businesses and foreigners.”
He said foreign investment in Canada being down 75% in the last decade is not only worrying, it is contrary to the country’s identity.
“We are a small country that really is supposed to be an open country, that welcomes investment from abroad,” Veldhuis said.
While the competitiveness of Canada’s market has taken a material slide relative to other countries, a focus on three key policy issues can quickly create a positive investment climate, he said.
“Are governments being prudent in managing their finances and deficits? Do we have a competitive tax system? Are we removing regulations and red tape to be more competitive? I would say no on all fronts.”
Next week’s event, the fourth annual hosted by the Tri-Cities Chamber of Commerce, will also look at blockchain technology and the effects of cryptocurrencies on business and banks, followed by a look at the impacts of cannabis legalization and B.C.’s potential plans for regulation.
The summit will take place at the Hard Rock Casino in Coquitlam on May 8.
