Certainty in Chaos: Canada’s Path to Unshakable Economic Leadership

As G7 nations race to secure global capital, Canada risks falling behind unless we act now. Canada must act with equal urgency and ambition if we want to be competitive. As the One Canadian Economy Act moves through Parliament in Ottawa, we urge all levels of government to make foreign direct investment attraction a national imperative, as it will support economic strength and resilience for all of Canada. In particular, we need streamlined regulations to facilitate large investment projects of national interest, especially those that involve building critical infrastructure.

Canada’s Strengths and Weaknesses

Canada boasts significant attributes for attracting global capital. These include vast natural and energy resources, cutting-edge manufacturing, and regulatory stability, to mention a few. But above all, Canada has world-class and highly skilled talent that will drive innovative future-focused sectors like clean energy, AI and quantum technologies.

That’s Canada’s competitive edge. Here’s what’s weighing us down.

Across a wide range of sectors, including natural resource development, clean energy, tech and manufacturing, there are two main obstacles in attracting new investment: a regulatory maze that stalls processes and supply chain pressures.

A Vision for Growth

The solution? A bold vision that pairs ambition with smart investment. We must invest in modern ports, advanced digital networks, smart energy grids, and high-speed rail to unlock new growth and attract global innovators. At the same time, we must speed up approvals for critical infrastructure while still maintaining strong Canadian control.

This balance is key to maintaining national security, especially as we work to reduce trade barriers between provinces and give Canadian businesses more room to grow. A truly national market will make our companies better partners for global investors—and more competitive on the world stage. When it comes to foreign investment, the goal should be partnership. We need global investors who align with our values and work alongside Canadian firms to strengthen the Canadian economy.

The Role of MNEs in Canada’s Economy

Across 14 city regions, members of the CCCA ensure multinational enterprise (MNE) investments translate into tangible benefits for their communities, guiding subsidiaries in navigating everything from location decisions to the regulatory landscape. The results are staggering. In 2022, MNEs drove nearly 75% of Canada’s merchandise exports while demonstrating 23% greater productivity than domestic firms. When MNEs grow in number or scale, they spur increased innovation, increased R&D, technology adoption, and operational efficiency. Increasing the share of MNEs in the economy will lead to higher aggregate productivity—a critical advantage for Canada, which has been grappling with chronic productivity challenges. Their success must complement Canadian leadership in key industries.

Beyond their direct contributions, global enterprises act as strategic anchors, integrating Canadian industries into global supply chains while playing a pivotal role in export market diversification. They also create ripple effects, including benefits for our small and medium enterprises (SMEs) that need to look beyond the traditional US trade corridors and access new global markets.

The Path Forward

The equation for success is clear. Whether it is to improve our infrastructure, achieve our decarbonization goals, or diversify our export markets, Canada stands to gain by supporting global investors while ensuring Canadian ownership and control of key assets. Leadership demands boldness: slash red tape and modernize infrastructure. The One Canadian Economy Act is a positive step: It will shift project approvals from “whether” to “how,” streamline interprovincial trade, and accelerate infrastructure. Now, that same urgency must be applied to empower Canadian city regions to compete globally while safeguarding our national interest, and win.

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