OTTAWA – Canada's growing trade deficit is ringing alarm bells, says Official Opposition Trade Critic Don Davies.
"In July, Canada ran the worst merchandise trade deficit in history, and it's not an isolated event," said Davies. "Canada's export of value-added products is steadily shrinking, and our overall trade deficit is growing dramatically. This is bad news for the economy."
Citing Statistics Canada data released yesterday, Davies noted that since Stephen Harper’s Conservatives came to power, Canada’s trade balance has gone from a $26 billion surplus to a $50 billion deficit. The trade deficit in manufactured items had exploded over 5 times, going from $17 billion in 2005 to over $90 billion today.
“Economically, the Conservatives use a lot of rhetoric but the facts tell a very different story,” said Davies. “It’s Canadians who have to deal with the negative effects of weak Conservative leadership, including job losses and the economic downturn.”
Davies said that policies to increase value-added exports and address mounting trade imbalances must be implemented without delay.
“The federal government must play a role in the development of strong, future-oriented industries. The Conservatives must start working with Canadian exporters to grow their businesses and reverse these damaging deficits." Davies said.