Perspective of Value

"Once the sequence of stronger exports, rising confidence, increased investment and stronger productivity is launched, it could well gain traction faster than expected."
Tiff Macklem, deputy governor, Bank of Canada
 
"Back to back increases in trade confidence haven't happened since the deluge of government spending hit the world economy in 2009."
"We may be looking at a moment when companies around the world start ramping up production to keep up with demand."
Peter Hall, chief economist, Export Development Corporation

The Conservative government under Prime Minister Stephen Harper has energetically set out to increase Canada's trade agreements with other countries and other blocs of trading nations, and has met with quite a lot of success in that ambitious enterprise. An almost completed trade deal with the European Union has taken place to relatively little fanfare.

Another such agreement, of possibly larger and more far-reaching dimensions is on the cusp of being announced, one that has the potential to embrace a full one-third of all world trade, between a dozen countries under the Trans-Pacific Partnership. Trade ministers meeting in Singapore recently held out the real potential for concluding that free trade agreement.

A semi-annual survey was circulated to Canadian exporters and manufacturers by the Export Development Corporation, the result of which has been the understanding that there are greater expectations and aspirations relating to future trade and export prospects for Canadian prosperity into the future than has been evidenced in quite a while.

This despite Canada having experienced little of the real economic pain that its counterparts in Europe and the United States have undergone during the recession that saw the international community wobble in financial meltdown and a painfully slow recovery. This nation's financial house was in relative order, enabling Canada to weather a storm that shook the very foundations of its neighbours' balance sheet.

Of a survey of a thousand Canadian exporting businesses, a growing majority claim they anticipate sales will increase within the following six months; their international business opportunities are expanding and they're being given the opportunity to diversify their markets with 35% of respondents indicating they've been exporting to new countries in the past several years.

Canada does have a weak productivity reputation as opposed to the United States, compounding our competitiveness; labour costs of production compared to the U.S. could be improved immeasurably. That, with the appreciation of the Canadian dollar hasn't been a boon to export, but the Canadian dollar is now down appreciably in value against the U.S. dollar, its lowest point in five years.

In our favour is the fact that we have a strong product mix; oil and gas as primary energy products, if we can manage to get them to the markets that want them. Canada does well in management, computer, information, engineering and financial services, making up about 15% of all exports, over motors and machinery. While corporate balance sheets are strong, re-investment continues weak and there's an area for improvement.

This is where focus should be, in the news; a little bit of self-congratulation and appreciation for government steering Canada relentlessly into trade-enhanced opportunities. But it's all being overlooked in the news in favour of titillating tales about a handful of elected and non-elected politicians being accused of enriching themselves at the public trough, or rebelling against the steady hand of the current government at the helm.