A sweeping trade deal similar to the tentative agreement Canada has with the European Union wouldn't be possible with China, Prime Minister Stephen Harper said Friday.
Speaking to an audience at the Toronto campus of Western University's Ivey School of Business, Harper said there are big opportunities for trade with Asia, but that countries such as India, China and South Korea aren't making the same style of deal as the one Canada has tentatively reached with the EU.
"Making progress on any one of those fronts would be important," Harper said. "But I think the fact of the matter is no one country in the world would have or would expect to have as comprehensive a deal as we have with the EU with China today.
Harper also insisted the government needs the ability to judge individual investment bids by state-owned enterprises. Canadians don't want to see entire sectors becoming state-owned industries, he said.
"I think it would be foolish for the Canadian government to provide absolute clarity," he said.
Last December the government approved a bid by China’s CNOOC to buy Calgary-based Nexen, but signalled any future bids by state-owned foreign companies in the oilsands would only be approved on an "exceptional basis."
Harper said he's aware of the experiences of Canadian investors around the world, adding Canada is one of the most rules-based systems in the world, and seized the opportunity to plug Canada’s recovery.
"I tell you, when I go to these international meetings and meets heads of government whether they're from advanced or emerging countries, there’s virtually no head of government who wouldn’t prefer to be in my position than the one they’re in. That’s a pretty positive measure."
Harper says Canada can, and needs, to do better on a number of fronts. He said he’s concerned by the debt levels of some provinces, but suggested he’s not as concerned about the level of household debt in Canada.
"I don’t think we should exaggerate the problem. The fundamental reason people have increased their borrowing is that it’s cheap to increase your borrowing."
Harper did acknowledge that more needs to be done to improve the competitiveness of the Canadian economy, including the shortage of skilled workers in key industries.
