Roads, horses, and carts, oh my! Time for Canada to take trade-enabling infrastructure seriously

In February, Environment and Climate Change Minister Steven Guilbeault caused a stir by stating that Canada’s current road infrastructure was sufficient, and that Ottawa would not fund any work to enlarge the road network. This prompted a reaction from stakeholders seeking clarification, as well as significant backlash from several premiers and mayors across the country. Guilbeault’s statement highlighted the problematic and zero-sum paradigm that defines the way many policymakers think about economic, environmental, and social issues, believing that investing in roads is somehow mutually exclusive from saving the environment. A great metaphor comes to mind, thanks to Manitoba Premier Wab Kinew, who has repeatedly stressed that the “economic horse pulls the social cart” with his government stating in the speech from the throne that fixing health care and restoring affordability for families is dependent on growing the economy, not antithetical to it. It was a rare and welcome recognition that the economy doesn’t work without trade-enabling infrastructure, which includes roads. And while, according to the World Bank, trade accounted for more than two-thirds of Canada’s GDP in 2022, we don’t seem overly committed to preserving or growing trade. But we should be, given that moving goods across the country effectively using trade infrastructure is so critical to the health of our economy, opportunities for our businesses, and ultimately, the quality of life we enjoy. Canadians would likely agree, and could not be blamed for assuming that a long-term strategy to grow and protect trade-enabling infrastructure exists in our country, particularly given trade’s importance. However, a 2021 European Court of Auditors' comparison of frameworks for large transportation projects in Canada, Australia, the United States, Switzerland, France, Norway and the European Union, highlighted that Canada is alone in lacking an overarching transport infrastructure strategy framework. This was just more bad news following the 2019 global competitiveness index which underlined the serious decline in Canada’s transport infrastructure over the past decade, with our ranking falling from its peak of 10th in the world in 2008, down to 32nd in 2019. While such a plunge in our global standing is certainly concerning, the even more alarming barometer of our economic prospects is the widening gap between Canada and our largest trading partner and competitor, the United States, which has doubled down on investment in transportation through its $1.2-trillion Bipartisan Infrastructure Law. Fortunately, not everyone is asleep at the stirrups. Our provincial premiers have repeatedly acknowledged the need for long-term infrastructure planning, first by endorsing the principles of a Canada Trade Infrastructure Plan at the Council of the Federation’s summer meeting, then calling for an in-person first ministers’ meeting dedicated to the linked priorities of competitiveness and strategic infrastructure, and have now written to the prime minister to reiterate their infrastructure priorities. Clearly, the lack of clarity around whether any infrastructure funding plan is forthcoming continues to fuel uncertainty. That’s no surprise given that our supply chains have been under constant strain in recent years due to floods, wildfires, blockades, strikes, and the COVID-19 pandemic, highlighting that they are only as strong as its weakest link. Which is why now is the time to encourage investment in transportation infrastructure that enables Canadian businesses to get goods to market, grow our economy, establish our nation as a reliable trading partner, and ensure Canadians and their communities have reliable access to goods and services. There have been positive developments in this regard, such as the National Trade Corridors Fund. But with those dollars mostly allocated, more is needed. In alignment with premiers, the private sector has also been calling for a collaborative approach and a forward-looking, long-term Canada Trade Infrastructure Plan, which would signal to the world the Canada is, indeed, open for business and invested in being so. And now, as we turn our collective attention to next week’s federal budget, we can only hope that the economic horse is appropriately placed before the cart. Because the road to a more prosperous life for Canadians is paved with strategic investments in infrastructure that improve our competitiveness and unlock our potential. Pascal Chan is the senior director, transportation, infrastructure, and construction at the Canadian Chamber of Commerce. The Hill Times