The governor of Canada's central bank says policy-makers have a duty to explain the merits of free trade at a moment marked by anti-globalization sentiment lapping across different continents.
Stephen Poloz will deliver a speech in two weeks in New York on strengthening global trade, its growth rendered sluggish by a variety of factors including low commodity prices and a multi-country economic slump.
The Bank of Canada governor said protectionism is also a concern, in an exchange with reporters at global financial meetings Saturday in Washington.
He didn't cite any examples.
But England is voting on whether to leave the European Union; continental Europe is debating the merits of its open borders, amid attacks by militants and an influx of migrants; and in the U.S. election, trade is a four-letter word. Every major presidential candidate professes opposition to the Trans-Pacific Partnership — with Donald Trump and Bernie Sanders going one step further: they also propose ripping up existing deals like NAFTA.
Policymakers have a responsibility to speak up about the beneficial effects of trade, he said — about how it creates gains and losses, but that the positives outweigh the negatives.
Poloz said an economist might take that principle for granted but needs to communicate it clearly, to counter the voices of people who don't understand economics and might otherwise dominate the debate.
Poloz also addressed the question of whether he'd waded too deeply into another political issue: the Liberals' deficit spending.
The non-partisan governor drew some eyebrow-raises this week for crediting the federal budget, as his institution improved the country's economic forecast.
He said it's his job to explain how he arrives at his projections. Last week, the bank revised its forecast to 1.7% economic growth for the year, up 0.3% from the January expectation.
