In an era defined by geopolitical strife and the looming specter of economic weaponization, Canada faces unprecedented challenges and opportunities in global trade and national security. Robert Asselin, CEO of U15, presents a compelling case for rethinking Canada’s economic strategy to navigate this complex landscape. The recent dynamics in international trade, especially with the United States, showcase a tectonic shift from an assumption of free access to a more uncertain reality.
### Economic Coercion and Its Implications
The comforting notion that Canada could rely on stable, unrestricted trade with its neighbor to the south is fading. Critics may argue that trade agreements like the Canada-United States-Mexico Agreement (CUSMA) still serve as a bulwark against instability. However, the reality of geopolitical relations indicates that agreements can easily be undone by tariffs or sudden export controls. Countries are increasingly using economic measures as tools of coercion, compelling Canada to adapt its approach to both trade and national security.
### Merging Economic and National Security
As Canada navigates this weaponized economy, the interdependence of economic and national security becomes palpable. The urgency for effective responses to U.S. trade coercion, regulatory hurdles, and domestic vulnerabilities is paramount. This dual focus involves immediate actions, including regulatory reforms to expedite energy project approvals, diversifying trade partnerships, and increasing defense spending.
However, short-term strategies alone will not suffice. The proactive stance Canada must adopt focuses on building sustainable, sovereign capabilities in advanced industries—such as energy technology, biotechnology, microelectronics, and agricultural innovation. These sectors will be critical in facilitating long-term resilience against external pressures.
### Innovation Power as a Pillar of Economic Strength
Asselin highlights the pivotal role of “innovation power,” which involves the capacity to invent, adopt, and integrate technologies at scale, as the bedrock of both prosperity and security. Drawing lessons from the tech industry, he underscores the necessity of fostering a robust research ecosystem that translates discoveries into economic advantages. Canadian research institutions are globally recognized yet often fail to scale breakthroughs due to a lack of cohesive strategies linking research to industry.
The ability to harmonize talent, research excellence, and capital investment stands as the crux of advancing Canada’s economic standing. Canada’s current industrial policy shortcomings reveal that mere funding is insufficient. What’s needed is a visionary alignment that marries scientific inquiry with industrial capacity.
### Learning from Global Examples
While skeptics argue that Canada can’t match the scale of organizations like NASA’s Jet Propulsion Laboratory (JPL), it’s essential to understand that the takeaway isn’t scale but alignment. The success of JPL comes from integrated ecosystems that connect research with industrial applications, driving technological advancements that benefit national interests.
The recent establishment of BOREALIS, a defense research bureau by the Canadian government, presents a potential framework to replicate this synergy. If executed with ambition, BOREALIS could act as a conduit linking academic research and industry needs, fostering public-private collaborations that enhance Canada’s capabilities in critical technologies.
### Human Capital: A Key Resource
In addition to technology, the human element remains crucial in establishing resilient national projects. Canada’s ambitions in nuclear power, AI, and grid expansion all rely on a skilled workforce developed over years. This necessitates sustained investment in education and research—overlooking this could result in lost competitive advantages.
Recent shifts in Canada’s immigration policies pose a significant risk to attracting and retaining top talent. Changes in student visa policies could deter skilled individuals from pursuing opportunities in Canada, creating a gap in expertise necessary for innovation and economic growth. A streamlined and strategic approach to immigration and education is essential to safeguard Canada’s intellectual resources.
### Conclusion: A Path Forward
Canada’s path in a weaponized world economy rests on acknowledging the interconnectedness of economic security and national resilience. While addressing immediate threats through regulatory reforms and international diplomacy is vital, the long-term solution lies in nurturing innovation, prioritizing infrastructure, and investing in human talent.
Transforming Canada’s economic landscape requires a recommitment to intersectional policies that bridge gaps between research, industry, and security. By leveraging its strengths in research and talent, Canada can position itself not only as a participant in the global economy but as a competitive leader.
Asselin’s insights underscore the importance of adopting a holistic strategy where talent and technological advancements are not seen merely as outputs but as integral inputs into a resilient, forward-looking national economy. By embracing these principles, Canada can navigate the complexities of a weaponized economy and emerge stronger and more secure in the face of global challenges.
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