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Background information: Public consultations on potential new measures to advance and defend Canada’s economic security interests

The Government of Canada is seeking stakeholder views on protecting and promoting Canada’s economic security.

Current situation in Canada

Trade is an integral part of the Canadian economy. It represents two-thirds of Canada’s GDP, while exports alone support nearly 3.3 million – or 1 in 6 – Canadian jobs.  As a trading nation, Canada depends on, and benefits from, a system of rules and institutions that provide certainty and stability for Canadian business in international trade and investment.

In the world today, supply chain disruptions, rising global protectionism and unfair trade practices threaten to undermine Canada’s access to open markets and the reliability of our supply chains, as well as our national security.  Left unaddressed, these challenges can impair Canada’s competitiveness, cost us jobs and damage our future economic prosperity.

Canada has an existing range of tools to protect and promote our economic security and prosperity, which include measures built into our existing trade and investment laws and frameworks, as well as policies that promote trade diversification, investment attraction, and support the competitiveness of our industries. The Government has identified in this consultation a range of areas where we could potentially build upon this toolkit.

The Government is also seeking stakeholder views on risks and threats to Canada’s economic security, potential gaps in Canada’s ability to protect against these risks and threats, and the likely impact of potential new approaches for Canadian importers, exporters, industry, and the public.

This consultation encompasses Canada’s whole economic security toolkit, as it may apply to a range of partners and sectors, to ensure Canada is ready to face a broad array of economic-related challenges. This consultation is separate from the consultation on potential policy responses to unfair Chinese trade practices in electric vehicles which concluded on August 1, 2024.

Canada’s economic security toolkit

Canada has many important and flexible tools and measures that can be used to defend its economic interests, such as:

Canada has also been working to modernize its existing tools in key areas:

Canada has also undertaken to cooperate with key partners on economic security and supply chain resilience:

Enhancing Canada’s toolkit

Canada is exploring whether potential enhancements to this toolkit are needed to effectively respond to harmful economic practices in the evolving economic and geopolitical environment. In this context, Canada is seeking the views of stakeholders on the potential benefits and risks of the following potential measures:

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