Tue Sep 10 00:17:00 UTC 2024: ## Canada Needs to Adapt to a Shifting Global Trade Landscape, Bank of Canada Governor Warns
**Ottawa, Sept. 10, 2024** – Bank of Canada Governor Tiff Macklem has urged Canada to adapt to a changing global trade landscape, highlighting the need to secure its place in a world where trade patterns are being reshaped.
In a speech to the Canada-UK Chamber of Commerce in London, Macklem emphasized that international trade is undergoing a significant transformation, driven by factors like slowing globalization, geopolitical tensions, and the rise of China as a manufacturing powerhouse.
“We need to be effective at the international table to influence how trade is recast and redirected,” Macklem stated. He acknowledged that while the Bank of Canada doesn’t set trade policy, it must understand the shifts due to their impact on costs and inflation.
Macklem pointed out that the growth of global trade has slowed in recent years, and the growth that is happening is shifting from goods to services. He also noted that the rise of China has led to both opportunities and challenges for Canada, particularly in the high-tech and electric vehicle sectors.
“We need to build better relationships, produce the products people want to buy, build and maintain the infrastructure to get those products to market, and boost our productivity to compete globally,” Macklem concluded.
His remarks come as the Bank of Canada grapples with inflationary pressures. While the central bank cut its key interest rate target last week, Macklem suggested further cuts are likely if the economy continues to perform as expected.
To navigate the evolving trade landscape, Macklem stressed the need for Canada to invest in trade infrastructure, reduce trade barriers, and support innovation in businesses. He also highlighted the importance of the Canada-U.S. trade relationship and the need to maintain its strength.
First Piper 