Where we are today
With rhetoric reaching a fevered pitch, Canada/U.S. trade discussions have not only stalled, but crashed to a halt after an ad aired in the U.S. during the World Series which ruffled feathers and resulted in a threat to raise tariffs on Canada by an additional 10 per cent.
When it comes to negotiations, Canada sits at a disadvantage considering that a majority of our exports go to the U.S., 75 per cent as of 2024 according to Scotiabank. If that’s not staggering enough, with the exception of agriculture, metals and minerals, all goods exporting sectors rely on U.S. goods markets for between 74 and 100 percent of overall exports.
The pressure is on us to diversify our trade markets and find trade security. It’s time for Canada to invite other customers to the game.
During his recent trip where he attended the Association of Southeast Asian Nations (ASEAN) Summit in Kuala Lumpur, Prime Minister Mark Carney put it into his own words, “Now is not the time to be cautious, because fortune favours the bold. Now is the time to bet big on Canadians and play to win.”
We must replace cautious steps with concrete, decisive action to rebuild the investor confidence we’ve eroded. To truly strengthen our position at the global table, we need to present more than promises; we need a definitive playbook. This means laying out a clear capital plan with set timelines, genuine partnerships, and a merit-based execution strategy to show the world exactly what a Canadian victory looks like.
Moving from ambition to action
Having lofty goals is one thing, bringing them to fruition takes action. We support the recent list from the Major Projects Office (MPO) and the amazing work that they are undertaking. Such projects foster business partnerships, simplify regulations, improve supply chains, and generate revenue for governments and citizens nationwide.
Whether we’re talking about building new homes, unlocking our energy potential, or connecting our infrastructure and supply channels to the rest of the world we share a common goal, we need to act now and build processes that attract investment capital – proponents that are willing to pick Canada as a place to build.
Projects need to meet four critical criteria:
- Approvals obtained within a two-year time frame or less
- Financially viable
- Have proper oversight to ensure on-time and on-budget delivery
- Provide opportunities for Indigenous participation/partnerships
Business Development
It isn’t all about credit ratings, it’s about execution risk. Investors at all scales will first assess the risk of a project not being completed, then will examine what types of guarantees are in place to mitigate that risk. Until we correct the execution deficit and fix the bankability gaps, capital will price us out, or worse yet, not be available at all.
Once those are addressed, proponents look for covenants to ensure their return on investment is guaranteed and what kinds of backstops are in place to protect against project overruns. In addition, incentives need to be put in place that guarantee revenue and a pre-payout return profile – the time equity is locked-in before the first payout.
Then stop-gates need to be put in place where the capital is released in demonstrable stages dependent on milestones being reached instead of funding the entirety of a project from the beginning. Lastly we need to communicate to financial markets that Canada has processes in place and we are accountable when it comes to foreign investment and can guarantee the safe flow of capital and project success
Clearing Regulatory Hurdles
To attract global capital, we must first build a bedrock of regulatory certainty. Investors need a clear, mapped path to approval and not a maze with moving walls. This means overhauling our systems to create capped timelines and locking them in, transforming a perceived liability into a compelling asset.
True partnership is the new imperative. This begins with engaging Indigenous communities as foundational partners from the outset. Moving beyond consultation to collaboration isn’t just the right thing to do, it’s the smartest way to build durable, successful projects that benefit everyone.
We must shed the parochial mindset that limits our talent pool. To compete on a global stage, we need the best players on our team, regardless of their geographic location. Let’s champion global skills and be unafraid to import world-class expertise to ensure our projects are executed flawlessly.
Finally, we must own our past to secure our future. Canada’s track record on major projects is a lesson, not a life sentence. By openly demonstrating how we’ve learned from previous stumbles and embedded those hard-won lessons into our current plans, we build the credibility that turns cautious interest into firm commitments.
The Final Sale
By establishing regulatory certainty, forging true Indigenous partnerships, and de-risking projects for global capital, we can do vastly more than just build infrastructure. We can build a formidable new foundation for our economy. A track record of success is our most-powerful negotiating-tool, and transforms Canada from a supplicant into a confident and credible partner that the world is eager to do business with.
