Address by Minister Dion on inclusive growth and the role of think tanks

September 28, 2016 - Montréal, Quebec

Check against delivery. This speech has been translated in accordance with the Government of Canada’s official languages policy and edited for posting and distribution in accordance with its communications policy.

Many thanks to the Centre for International Governance Innovation and the Think Tanks and Civil Societies Program at the Lauder Institute, at the University of Pennsylvania, for this opportunity to speak to many of the best think tanks in the world.

As some of you are not Canadian, let me describe myself to you a little. There are certain things that I am particularly proud of, which are:

• being a teacher and having taught political science at the universities of Moncton and Montréal;
• having been a member of Parliament for a Montréal riding for the last twenty years; and
• having been a minister, and today, being minister of foreign affairs.

But there is something else I am particularly proud of, and I have never said so publicly: I was the centre fielder on the 1990 to 1991 edition of the Brookings Institution’s softball team, when I had the privilege to be a guest scholar there!

I am particularly pleased that you invited me, considering that many of your themes of discussion are at the heart of the Government of Canada’s preoccupations: protectionism, populism, mistrust, economic inequality, and, quite frankly, xenophobia.

Yes, these days we see a resurgence of mistrust and fear of the “other.” Too many politicians want to gain popular support by exploiting these fears.

Prime Minister Justin Trudeau has told Canadians that we are one of the most diverse countries in the world and that this is what makes us strong. He has said that we should accept not fewer refugees, but more. He has said that every wave of refugees makes us stronger than before.

With leadership, a message of inclusion can resonate.

Diversity in Canada is a fact: this country is home to people of every race, religion, sexual orientation, shape and size.

Diversity is a fact, but inclusion is a choice. This choice is guided by the many benefits that diversity can bring.

I believe that diversity in our communities and countries can lead to higher rates of economic growth, better social cohesion, and tremendous cultural and civic benefits.

It has taken years of hard work to get Canada to where it is today. Inclusion does not happen by accident: it happens by recognizing that diversity is strength, and it happens because of choices:

• The Government of Canada chose to welcome more refugees.
• Prime Minister Trudeau chose to have gender parity in his Cabinet.
• The Government of Canada chose to introduce new legislation to protect transgendered Canadians.

Inclusive growth, whereby all sections of society enjoy equal economic opportunities, is a primary objective. In Canada, as elsewhere, it would be a mistake to underestimate the real anxiety that many people feel when there is not enough inclusive growth.

When the middle class feels stuck and does not see its standard of living increase, when people worry about being worse off than their parents or when the poor see no hope of joining the middle class, it should not surprise us when populist politicians succeed in exploiting these fears.

I believe there is a clear link between a politics of exclusion and a sense of economic insecurity. We must tackle this problem head on.

This is why the Government of Canada has taken a number of steps to promote inclusive growth and restore trust that the economy works for everyone.

These include:

• expanding the middle class and working to reduce inequality;
• expanding fiscal justice by calling on those who can do so to contribute more; and
• helping families with children.

We know that a society with an expanding, rather than a shrinking, middle class has the best chance of achieving prosperity for all. And that a society cannot prepare for the future without investing in its children.

We are supporting the economy by investing in green infrastructure, public transit, social housing and strategic infrastructure. This is investment for the long term, but it is now more relevant than ever for tackling the significant infrastructure deficit, both in qualitative and quantitative terms, and bringing our economy up to speed on new technologies and environmental challenges.

As Christine Lagarde, Managing Director of the International Monetary Fund, recently said when she came to Canada, “The Canadian government is right to use infrastructure spending to stimulate economic growth.”

We are investing in research and development, science, technology and high-tech industries. In today’s knowledge economy, if you’re not going forward, you’re going backward.

We are focusing on Indigenous peoples to help them realize their full potential. This is a young population that has too much to offer to allow the tragic waste of talent to continue.

We are reinvesting in culture, an inexhaustible source of intellectual and spiritual enrichment and inspiration, and an underused lever that can revitalize entire cities.

We are strengthening our trade relations with the United States by facilitating the transborder movement of people and goods, ensuring that the border is both more secure and more fluid.

We are strengthening our ties with Mexico, and we reached an agreement with our two NAFTA [North American Free Trade Agreement] partners to better align our energy and climate-change policies. And while we actively seek out other markets throughout the world, notably China, we never take the U.S. market for granted: it is a market with unlimited potential.

One of the greatest challenges of our time may be to prove to our populations that global trade and inclusive growth can go hand in hand. Canada is a trading nation. We have a modest population that is wealthy by virtue of its commerce with the rest of the world. The Government of Canada is resolutely committed to an aggressive and progressive trade agenda.

To convince our fellow citizens that protectionism, turning inward, is not the way, governments need to negotiate trade deals that give confidence. Governments need to convince people that these deals will be for everyone, not just for the biggest corporations and for the richest 1 percent. If we fail to convince our fellow citizens that good trade deals enlarge the middle class instead of shrinking it, they will follow the populist politicians, who promise them the moon by closing themselves off from others.

As the Canada-EU Comprehensive and Economic Trade Agreement, CETA, was being negotiated, many were concerned that the deal would weaken the capacities of governments to enact progressive social or environmental policies.

With leadership from my colleague Chrystia Freeland, Minister of International Trade, Canada renegotiated the investment rules. Modifications have been made to clarify provisions on the right to regulate by all levels of government. Notably, the tribunal for investment disputes will be appointed by Canada and the European Union, and no longer will the investors launching a dispute participate in the selection of arbitrators.

We successfully modified the investment chapter to make sure governments retain their capacity to regulate and parliaments to legislate for the sake of the environment, food safety, social programs, labour rights and health policies.

In ratifying the improved CETA, Canada and the EU have a golden opportunity to show the whole world that free trade and inclusive growth are not only compatible, but mutually reinforcing. This is what a progressive trade agenda is all about.

Europe is grappling with strong populism. After the vote on Brexit, Europe needs to show it is capable of moving forward. If Europe can’t ratify a trade deal with Canada, with whom will they?

What is at stake here is the direction the world will take: an open or a closed economy, inclusion or exclusion, trust or fear, progressive trade or protectionism, shared growth or rising inequality.

With responsible conviction, I believe that to succeed we must support the best advisers, the best experts. We need to hear their voices loudly in the public debate, injecting facts and sober opinion where too often prejudices and falsehoods prevail.

It is in this space that the best think tanks can—and must—play a critical role. The aim is nothing less than the triumph of these simple truths: inclusion does work, and progressive global trade is possible.

When I look at the program of events of your conference, I see that you will deeply debate these crucial issues. I regret that I can’t stay with you. But I have my spies among you, and I look forward to their reports. Given the quality of the minds in this room, I don’t doubt that there will be progress made in building the case for inclusion.

And maybe you will do it…from the centre field.

Thank you.

Contacts

Chantal Gagnon
Press Secretary
Office of the Minister of Foreign Affairs
343-203-1851
chantal.gagnon@international.gc.ca

Media Relations Office
Global Affairs Canada
343-203-7700
media@international.gc.ca
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