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Trade, Transportation, and Supply Chains

Canada’s productivity problem is partly a logistics problem. Bottlenecks at seaports and airports, constraints on rail capacity, and inefficiencies in road transport hinder trade flows, diversification, and the movement of people and goods. As Canada seeks to diversify its trade relationships, improving the infrastructure that supports trade is an increasingly important policy priority.

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Trade, Transportation and Supply Chains Recommendation Summary

Recommendation Area of Reform Level Source Document
1 Treat rail capacity and labour sequencing as central to port investment Improve port and rail capacity
Federal
Canada’s Ports Needed Fixing Long Before Trump and Export Diversification Hove into View
2 Adopt earlier mediation to reduce economy-wide labour disruptions Improve port and rail capacity
FederalProvincial
Canada’s Ports Needed Fixing Long Before Trump and Export Diversification Hove into View
3 Do not bring back the rule that required railways to hand off freight to competitors within 160 kilometres in the Prairies, since it discouraged investment in rail capacity Improve port and rail capacity
Federal
Budget 2023 Interswitching Changes will Derail Supply Chains
4 Privatize federal airports with private equity and pension fund participation Reform Canada’s aviation policy
Federal
An Economic Strategy for Canada’s Next Government
5 Apply price monitoring conditions to airport concessions Reform Canada’s aviation policy
Federal
An Economic Strategy for Canada’s Next Government
6 Eliminate remaining aviation fuel taxes Reform Canada’s aviation policy
FederalProvincial
Full Throttle: Reforming Canada’s Aviation Policy
7 Raise the foreign ownership limit on Canadian airlines to 49 percent Reform Canada’s aviation policy
Federal
Full Throttle: Reforming Canada’s Aviation Policy
8 Require bilingual service at Air Canada and airports only where numbers warrant, and end Air Canada’s requirement to keep its head office and maintenance centres in set cities Reform Canada’s aviation policy
Federal
Full Throttle: Reforming Canada’s Aviation Policy
9 Auction remaining airport authority leases, smallest first Reform Canada’s aviation policy
Federal
Full Throttle: Reforming Canada’s Aviation Policy
10 Eliminate airline foreign ownership restrictions entirely and renegotiate open skies agreements with the United States and Europe Reform Canada’s aviation policy
Federal
Full Throttle: Reforming Canada’s Aviation Policy
11 Extend the National Trade Corridors Fund beyond its 2027/28 end date, committing at least $500 million a year Diversify trade
Federal
An Economic Strategy for Canada’s Next Government
12 Pursue trade agreements with the United Kingdom and the Association of Southeast Asian Nations Diversify trade
Federal
Canada’s Investment Crisis: Shrinking Capital Undermines Competitiveness and Wages
13 Simplify customs and lower tariffs on innovation-intensive goods Build infrastructure to support trade
Federal
Innovation Policy in Canada: A Holistic Approach
14 Put the Indigenous Loan Guarantee Corporation to full use Build infrastructure to support trade
Federal
An Economic Strategy for Canada’s Next Government
15 Consider establishing an Indigenous Development Bank Build infrastructure to support trade
Federal
An Economic Strategy for Canada’s Next Government

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