Comparative research shows that geopolitical shocks have reinforced paradigmatic shifts in economic policy-making in recent years. Governments more assertively reshape markets to pursue public goals related to decarbonization, economic and national security, rather than focusing primarily on securing economic growth through trade liberalization. With the re-election of US President Donald Trump, this geopolitical turn seems to have arrived in Canada as well. Internationally, Prime Minister Mark Carney outlined his understanding of the newly emerging world order in his famous Davos speech. Domestically, he announced an industrial strategy to cope with these new risks, which are particularly pertinent to Canada’s relationship with the United States.
This talk examines these developments through a comparative-historical lens with a particular focus on the role of federal governance. It argues that Canada’s response to the “Trump Shock” indicates significant gaps between rhetoric and reality. Emerging policies do not suggest a coherent and substantive reorientation of economic policy-making in line with what comparative research has found in other cases. Rather, changes continue to be primarily focused on attracting investment through facilitating trade without, however, recalibrating and aligning this geopolitical strategy with other long-term goals. Considering Canada’s highly regionalized political economy and weak intergovernmental mechanisms, I suggest that the federal government’s current industrial strategy remains insufficient for promoting long-term adaptation as long as it fails to promote institutional reforms required for a more coordinated and coherent approach.
About the Speaker
Jörg Broschek is Laurier Research Chair and Professor of Political Science at Wilfrid Laurier University. He is also a Fellow at the Balsillie School of International Affairs. His research focuses on the intersection of multilevel governance, federalism and political economy in the areas of trade, industrial and transportation policy.
About the Discussant
Keegan Chmielewski holds a Master of Applied Politics degree from Wilfrid Laurier University and is currently in his first year of the PhD program in political science at the University of Waterloo. Before beginning his graduate studies, he worked as a constituency and legislative assistant for a number of Members of Parliament in Waterloo Region, including Parliamentary Secretary Tim Louis. In these roles, he gained firsthand insight into federal policymaking, constituency engagement, and parliamentary operations. His research interests include Canadian politics, comparative federalism, and multilevel governance.
