Ottawa, Ontario
Introduction
Good afternoon, everyone, and I hope you are enjoying the Summit so far.
Today's conversation happens at a critical moment for Canada's economy. Technology is racing ahead, global trade is shifting, protectionism is rising, and affordability concerns continue to grow.
These changes no doubt bring challenges, and they are urgent. But they also bring fresh opportunities to build a more affordable, productive and resilient economy.
In this context, competition is foundational. If we want an economy that delivers innovation, productivity, and resilience, then competition must be at the heart of our policy agenda.
As Commissioner of Competition, I see firsthand how competitive markets raise living standards for Canadians - delivering lower prices, better products and stronger businesses.
Despite this, I know there is a general perception that competition policy competes with other priorities, such as industrial policy, regional development and national security.
The case I make today is simple: competition does not conflict with these goals-it supports them.
In fact, there are three important reasons why competition is key to Canada's economic prosperity:
First, competition is a catalyst for productivity and innovation
Second, competition drives affordability and consumer choice
And third, increased competition will strengthen Canada's global position
Productivity and innovation
I'll start with productivity and innovation.
As many here will know, Canada is facing a serious productivity challenge. We're fortunate to have Carolyn Rogers from the Bank of Canada with us today. She sounded the alarm on Canada's productivity crisis in a speech last year, highlighting limited competition as her biggest concern.
Put simply, productivity is about how efficiently we're able to turn resources into valuable products and services. Unfortunately, Canada's productivity growth has been lagging behind that of its peers for several years.
Some might think that increasing our productivity has drawbacks-that it could lead to more stressful workplaces, or that an emphasis on efficiency could lead to fewer jobs. But that's not the case. It has been well-established that gains in productivity come with more jobs, better wages, and a higher standard of living. Productivity is about innovation, smart choices, and making the most of what we have-for workers, businesses, and consumers.
This is where competition is key. When there's real pressure from competitors, businesses are driven to innovate, implement new technologies, and improve efficiency... all factors that drive the productivity needed for steady growth and higher living standards.
The Bureau recently commissioned an independent study from leading experts to estimate the productivity gains that Canada could realize by adopting more competition-friendly regulations in key sectors. By way of a teaser, I can tell you that the estimates are very significant and underscore the immense opportunity for Canada to tackle government-imposed barriers to competition across our economy. We expect the findings to be published later this year, so stay tuned.
Affordability and consumer choice
This brings me to the second point: that competition drives affordability and consumer choice.
In a time when Canadians are feeling the pinch, competition is one of the most effective tools we can leverage to lower prices and improve products and services. For example, following our recent airline market study, we found that airfares go down by 9% on average when one new competitor flies on a route between two cities.
With vigorous competition, businesses must provide the products consumers want...and offer them at prices they are willing to pay. This means that, in a competitive market, the consumer holds the power.
When there is limited competition, incumbent businesses make the rules. This can lead to products and services that are too expensive, low quality, or lacking features that consumers want. Without competition, consumers must accept these inferior products and services, or go without.
A competitive marketplace empowers consumers and pushes businesses to reduce costs and innovate.
Canada's global competitiveness
Finally, let's consider the impact of increased competition on Canada's global competitiveness.
With rising trade protectionism abroad, Canada must respond by strengthening our own economic foundations. We can do it by removing internal trade barriers, opening new markets, and fostering a regulatory environment that supports fair competition.
Why? Because strong domestic competition drives competitiveness abroad.
Shielding domestic firms from competition doesn't make them stronger...it makes them complacent. If we want them to compete globally, they must face competition at home. Competition policy is not a constraint, it's a launchpad.
Three Paths Forward
While Canada has made progress in recent years to modernize our competition laws, we can do much more to make competition a central pillar of our economy.
First, we need to break down internal trade barriers.
These are, at their core, barriers to competition.
Canada's fragmented regulatory environment creates unnecessary obstacles for businesses and workers. We cannot build a dynamic economy if businesses are forced to navigate 13 different regulatory regimes in one country.
Swift action to slash these barriers and harmonize regulations across Canada will unlock significant economic potential and create a more dynamic marketplace-one that encourages entry and growth across our internal borders. Many provinces have been leading the charge here, and I would specifically highlight Ontario's recent move to reduce barriers for labour mobility in regulated professions as a very positive step forward.
Second, we need to expand international trade opportunities.
By opening new markets through trade agreements, Canadian firms can access more customers and compete globally.
This should include examining our own industries that are protected from foreign competition. Unleashing competition at home will make our companies more resilient in the long run and benefit consumers.
A forward-thinking trade strategy will drive long-term prosperity and reinforce Canada's role as a global leader in fair and open markets.
Third, we need to foster a regulatory environment that promotes competition.
All levels of government in Canada-federal, provincial, territorial, and municipal-must work towards removing barriers that limit smaller players' ability to compete in our economy. Smart regulations should encourage innovation and entrepreneurship, not entrench dominant players.
Among all the data on Canada's economic performance, what troubles me most is our declining rate of new business creation. Business entry is at the heart of economic dynamism. Startups bring new technologies and fresh business models that challenge the status quo. They push incumbents to sharpen efficiency, innovate, and lower prices. In short, new firms drive the renewal that keeps our economy moving forward.
That's why stagnant-or worse, declining-business entry rates should alarm us. Too often, red tape keeps new players out. Licensing hurdles, ownership limits, excessive fees-these barriers don't just slow entrepreneurs down, they lock them out. And let's be clear: incumbents benefit when the rules are stacked against challengers.
Financing is another critical piece. Access to competitive financing fuels entrepreneurship and SME growth. Yet recent observations raise concerns about competition in the lending sector. That is why we have launched a market study into the state of competition in financing for small and medium-sized enterprises in Canada. Our public consultation on the scope of this study closes in just two days, and we are determined to move decisively on this crucial issue.
Turning Ideas Into Action
This year's summit is all about finding solutions that make a difference for Canadians.
Our agenda covers competition from many angles-looking at what it means for consumers, workers, entrepreneurs, and the overall economy. Everyone here brings something unique to Canada's understanding of competition. Your ideas can help challenge old assumptions and shape new solutions. We've already heard many great ideas and perspectives this morning, and I'm looking forward to hearing more of them this afternoon. But let's not stop there.
In May, the federal government's Speech from the Throne called on Canadians to act boldly. And today, I'd like to make a similar call to action.
Together, we can build a more affordable, productive and resilient economy. Where Canadian businesses thrive through merit and consumers enjoy greater choice at more competitive prices.
Thank you and I hope you enjoy the rest of the summit.
