Freeing Trade: Why a Unilateral Approach Makes Sense for Canada

Research Report, Business Council of Canada, 2016

32 Pages Posted: 9 Aug 2016

See all articles by Dan Ciuriak

Dan Ciuriak

Ciuriak Consulting Inc.; Centre for International Governance Innovation (CIGI); C.D. Howe Institute; Asia Pacific Foundation of Canada; BKP Development Research & Consulting GmbH

Ali Dadkhah

Ciuriak Consulting Inc.; Infinity Law

Jingliang Xiao

Infinite-Sum Modeling Inc.; Ciuriak Consulting Inc.

Date Written: August 4, 2016

Abstract

The realization that competitiveness depends on having access to low-cost inputs has led Canada along with many other countries to slash tariffs unilaterally in order to enhance their own competitiveness. The present study builds on and updates a 2014 study of possible unilateral free trade being adopted by Canada, by re-simulating a policy of unilateral liberalization using this time a dynamic model that incorporates FDI, on an updated data set, and in an updated trade policy context that takes into account the new FTAs that Canada has negotiated, and the increase in in its general for developing countries. In addition to tariff elimination, it also includes liberalization of services and investment policy designed to improve Canada’s attractiveness as a global production hub.

Keywords: Canada, unilateral liberalization, CGE model, production hub

JEL Classification: F13, F14

Suggested Citation

Ciuriak, Dan and Dadkhah, Ali and Xiao, Jingliang, Freeing Trade: Why a Unilateral Approach Makes Sense for Canada (August 4, 2016). Research Report, Business Council of Canada, 2016. Available at SSRN: https://ssrn.com/abstract=2791604

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

Asia Pacific Foundation of Canada ( email )

Canada

HOME PAGE: http://ciuriakconsulting.com/

BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
München, 80639
Germany

Ali Dadkhah

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

Infinity Law ( email )

200-931 Fort St.
Victoria, V8V 3K3
Canada

Jingliang Xiao

Infinite-Sum Modeling Inc. ( email )

16167,Glenbrooks Pl
Vancouver, BC - British Columbia v4n1t3
Canada
6047245981 (Phone)
6047245981 (Fax)

HOME PAGE: http://www.infsum.com/en/

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

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