The Canadian Chamber of Commerce has compiled the following list as recommendations to strengthen Canadian supply chain resiliency.
- Tax and Access to Capital: Fiscal incentives for companies are critical in order to grow domestic supply chains.
- Procurement: Government led demand side factors are a crucial component for stimulating investments in domestic supply chains, particularly for innovative, and R&D intensive products.
- Intellectual Property: Canada also needs a new intellectual property strategy to encourage private sector investment in the development of leading technologies that support the early innovation phase in a product’s supply chain.
- Interprovincial Trade: The current crisis has shown the fragility of current rules that enable the movement of goods and people across provincial boundaries, and the effect this can have on supply chains.
- Infrastructure: Companies’ supply chains depend on resilient trade-enabling infrastructure to ensure they are able to move products to their customers and minimize bottlenecks.
- Investment Canada Act: The Investment Canada Act remains a vital legislative tool to ensure acquisitions of Canadian companies by foreign entities are not adverse to our national interests.
International Policy Recommendations:
- Security of Supply Agreements: COVID-19 has shown how quickly countries will enact export controls to ensure security of their own domestic supply.
- Export Controls: Canadian companies play a critical role in supplying products to foreign buyers either as the prime contractor or a component supplier.
- Border Procedures: A well-functioning border is a key for business to have predictability in terms of facilitating the movement of goods that should be entering the country and those that should not.
- Digital Trade and E-Commerce: Digitalization, remote provisions of services, and the movement of data are key enablers of supply chains for companies both domestically and internationally.
- Industrial Subsidies: As governments around the world seek to support their domestic economies, this will exacerbate problems with distortive industrial subsides and create competitiveness challenges for Canadian businesses.
- Trade Agreements: Canada’s network of free trade agreements has provided export opportunities for Canadian businesses. However, to increase the ability to use these as vehicles of support, we need to use regulatory mechanisms to resolve non-tariff barriers.
- Trade Promotion: Providing hands-on assistance for Canadian companies, particularly SMEs, is vital for their ability to participate in global supply chains.
- Labour Mobility: The movement of people is critical for Canadian businesses to participate in global supply chains.
To read how each point is expanded on in their original article, click here.