If you read the news these days, you might think the only sector driving the Canadian economy is oil and gas. It’s an undeniable fact that the oilsands are an important source of jobs, innovation and revenue in Canada’s resource-driven economy — especially when oil prices are high.
However, our myopic focus on this particular economic indicator does us more harm than good, as the real winds driving growth in Canada’s economy can be found in other parts of the country.
The Great Lakes-St. Lawrence Region is a critical example. If the region were a country, it would be the third largest economy in the world in terms of economic activity ($5.5 trillion U.S.).
Home to 107 million people, the eight American states bordering the lakes and the provinces of Ontario and Quebec account for roughly 40% of total cross-border trade between Canada and the United States.
It generates a jaw-dropping 50 million jobs, or nearly 30% of the combined workforce in the United States (U.S.) and Canada, and accounts for 24% of research and development spending in the U.S. and 72% in Canada.
It’s home to a manufacturing sector that is undergoing a massive transformation, thanks to re-shoring efforts and advanced technology. And yes, significant energy opportunities exist here too — like natural gas, nuclear and renewable solutions.
Finally, it’s a vital gateway for moving products of all kinds to continental and global markets.
But because of the region’s size, and the border which runs through it, policy makers at all levels in Canada and the U.S. still fail to see the critical nature of the region as a hub of economic potential, thanks in large part to the strong competitive forces that exist there.
There are steps that we can take from an economic policy standpoint that would allow us to fortify and fully leverage our strategic advantages in the region.
For example, as both countries pursue ambitious global trade agendas, just imagine how much more business we could do together with the rest of world if we were able to maximize and optimize the use of our regional transportation infrastructure for imports and exports — such as the St. Lawrence Seaway.
Imagine what we could do for our economy if we were to share talent in meeting changing labour needs in the region — such as our electricians, plumbers, welders and home builders — before drawing workers in from foreign markets.
Imagine what more we could do for business and the regional economy if we found a way to share regulatory, certification and licensing standards at the provincial-state level.
Imagine what we could do for the economy if worked together in developing new clusters of innovation in the areas of health care, water, aerospace and information and communications technology.
Simply put, there’s more work we can do to spur growth in this region in today’s borderless climate of global trade and investment — work which would be crucial to ensuring the long-term success of the Canadian and American economies.
