Given the huge imbalance, this would likely require more managed trade plus more proactive Canadian industrial policies. As a planned economy, China might be open to sectoral managed trade arrangements.
The innovation agenda marks another incremental turn away from “framework” economic development policies. But the shift is unlikely to be transformational unless it is scaled up and accompanied by a greater role for long-term public investment.
Our trade situation was a serious problem long before the election of Donald Trump and new realities will demand a serious re-thinking of the liberal trade and industrial policies of the “free trade” era and not just more of the same.
Viewing the TPP as a trade agreement masks its significance as a tool that will, like NAFTA, be used to challenge government regulation in the public interest. Investors from across the TPP will be able to appeal regulatory decisions before secret tribunals, giving them rights that do not exist for domestic companies under Canadian law.