Canadian Trade Policy Development: Stakeholder Consultations and Public Policy Research

Abstract

The way in which public policy is developed is highly particular to the context - the political and institutional framework of the country, the subject area, and the key issues and events of the day. Canadian trade policy formation is no exception, being very much shaped by its context - the Westminster model of government applied in a federal state that is constitutionally shaped by the history of how the country was put together, the recent admixture of participatory democracy that in turns drives transparency as an important feature and indeed an important objective of policy, the migration of trade policy issues from dealing with border measures to inside-the-border domestic regulatory frameworks, and Canada’s present circumstances as a highly open economy. In recent years there has been a significant evolution in the way that Canada develops trade policy, the way in which the Government of Canada communicates and through outreach builds support for trade policies, and the way in which research and analysis is brought to bear to underpin policy formulation and communication. This paper provides an overview of Canada’s trade policy development process; describes the issues faced in Canada in building up trade policy research analytical capacity and in bringing the results of research to bear on policy and in public outreach; and draws some conclusions, with a particular view to drawing out possible insights from Canada’s experience for Russia as it pursues membership in the WTO and deeper integration into the global economy.

Keywords: Trade Policy Development, Canada, Role of Economists, Economic Modelling

JEL Classification: A11, F14