Minister Morneau Talks Canadian Competitiveness in New York City
December 3, 2018 – New York, N.Y. – Department of Finance Canada
Canada’s economy is strong and growing, with more jobs and opportunities for the middle class and people working hard to join it. The unemployment rate is at its lowest level in the past 40 years, consumer confidence is strong, and business profits are up—but there is still more to be done to ensure long-term growth that will benefit all Canadians.
Today, Finance Minister Bill Morneau was in New York City to talk about Canada’s economic strengths and the recently released Fall Economic Statement 2018, which outlines the next steps in the Government’s plans to grow the economy by investing in middle class jobs.
Measures in the Fall Economic Statement will:
- Improve Canadian competitiveness by allowing the full cost of machinery and equipment used in the manufacturing and processing of goods to be written off immediately for tax purposes, and by introducing the Accelerated Investment Incentive to support investment by businesses of all sizes and across all sectors of the economy. These changes will make it more attractive to invest in assets that will help drive business growth and secure jobs for middle class Canadians.
- Increase investment in the clean technology sector by allowing specified clean energy equipment to be eligible for an immediate write-off of the full cost. This will help achieve climate goals, and position Canada to be more globally competitive.
- Accelerate support for business innovation by providing a further $800 million over five years to the Strategic Innovation Fund, which will support innovative investments across the country and in all economic sectors.
- Make Canada a globally connected economy by launching an Export Diversification Strategy aimed at increasing Canada’s overseas exports by 50 per cent by 2025.
- Make it easier for businesses to grow by modernizing federal regulations and encouraging regulators to consider economic competitiveness when designing and implementing regulations, while continuing to protect Canadians’ health and safety and the environment.
- Support innovative solutions to some of Canada’s big challenges by creating a Social Finance Fund that gives charitable, non-profit and social purpose organizations access to new financing, and connects them with non-government investors.
While in New York City, Minister Morneau also met with New York-based investors and financial sector representatives.
“Canada is one of the best places in the world to start, grow and invest in a business. At my meetings in New York I’ve been talking with U.S. business leaders about why they should invest in Canada, and how the Fall Economic Statement will build on Canada’s strengths. I’m glad to be advancing our important economic relationship with the U.S. in order to benefit all Canadians.”
– Bill Morneau, Minister of Finance
On November 30, 2018, Canada, the United States and Mexico signed a new agreement to modernize the North American Free Trade Agreement.
The new agreement will support good, middle class jobs in Canada; strengthen economic ties between the three countries; and contribute to North America’s global competitiveness.
Canada and the United States have one of the most successful trading relationships in the world; last year, bilateral trade in goods and services between the two countries was valued at nearly CAN$919 billion (more than US$690 billion).
Canada is the largest secure supplier of energy to the United States.
Canada is also an important customer, buying more goods from the United States than China, Japan, and the United Kingdom combined.
Canada is the number one export destination for most American states, and cross-border trade and investment supports nearly nine million jobs in the U.S.
The two countries’ manufacturing sectors are highly integrated, with products crossing the border several times before final assembly and sale in both countries.
In 2017, the stock of U.S. direct investment in Canada totalled CAN$405 billion (US$312 billion), making up nearly half of all foreign direct investment in Canada; at the same time, Canadian direct investment into the U.S. totalled CAN$505 billion (US$389 billion), making Canada one of the main sources of foreign direct investment in the United States.