Scott Thomson: Canada is finally backing out of its corner

Scott Thomson, president and chief executive officer of Scotiabank, speaks during an event at the Canadian Club in Toronto on June 6, 2024. Photo by Galit Rodan/Bloomberg

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The writer is president and chief executive of Scotiabank 

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The late Canadian prime minister Pierre Trudeau once said that the Canada-U.S. relationship resembled “sleeping with an elephant. No matter how friendly . . . one is affected by every twitch and grunt.” Now the elephant has tossed and turned, and Canada has finally woken up. This could be the watershed year in which we redefine our role in the global economy.

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For much of its history, Canada has earned a global reputation for being a peaceful nation and trusted ally — but more recently a place where productivity falls, per capita GDP stagnates and investment is made difficult.

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The country’s potential has always been there, thanks to one of the most highly educated workforces in the world, a strong and stable financial system and vast and untapped resources. Adding to this is Canada’s enviable place within the North American trade corridor, which provides access to the largest economy in the world via the world’s longest land border.

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There is no question that the obstacles to being a natural resources powerhouse — a goal long characterized by more talk than action — have very much been of our own making. However, recent U.S. tariff threats have galvanized Canada to act with urgency.

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At a time when polarization is increasing in many nations, Canadians are doing the opposite, coalescing and seeking to unlock the country’s economic potential. Government leaders from across the political spectrum are working together to safeguard Canada’s long-term prosperity, so it never again feels cornered, economically or existentially.

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Whether it is agreements to tear down internal barriers to trade that add 8-15 per cent to the cost of goods, reductions in red tape that have stood in the way of unlocking Canada’s natural resources or concerted efforts to reverse the recent decline in GDP per capita, Canadians are increasingly unified. My conversations with clients and business leaders from Canada’s largest companies reveal a renewed optimism; these leaders are ready to invest in the future.

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Canada’s new prime minister, Mark Carney, was elected on a mandate to create growth and he is moving forward decisively. Carney calls it Canada’s “hinge moment.” His newly proposed legislation, known as the One Canadian Economy Act, will streamline approvals and speed the construction of major infrastructure projects, including critical mineral mines, pipelines, ports, highways, nuclear facilities, wind farms and carbon capture facilities.

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The bill furthers the removal of long-standing interprovincial trade barriers, with provincial governments equally aligned in their ambition to get resources out of the ground and goods moving across the country. Indigenous rights holders will also be key partners through increased involvement in the development, stewardship and ownership of major projects.