Does Canada suffer from Dutch Disease? MLI's Brian Lee Crowley and Jason Clemens set the record straight in a Commentary explaining that the reasons for the ups and downs in Canada's manufacturing sector are much more complicated than proponents of the Dutch Disease argument would have us believe. Crowley and Clemens argue that while there is a relationship between changes in the value of the currency and the performance of the manufacturing sector, there is no compelling reason to conclude that the rise in the Canadian dollar is the sole, or even main, explanation for the decline in manufacturing employment in Ontario prior to the recent recession. Moreover, they emphasize that post-recession (i.e. between 2009 and 2011) manufacturing employment in Ontario rose by 4,400 at the same time that the currency appreciated by 15 per cent.
 
Click here to read Inconvenient Truths: What US and Asian Manufacturing Tell us About Canadian Manufacturing and the Dollar.

The Wall Street Journal covered the report here and Crowley and Clemens wrote an op-ed published here.

MLI has been at the heart of the raging national debate over agricultural supply management (SM). We released a publication that generated huge media attention in which the authors argued that Canada's continued support of SM, which restricts both domestic production (through quotas and licences) and international imports (through tariffs), is a significant barrier to this country's access to foreign markets, including the Trans-Pacific Partnership (TPP), and a regressive income re-distribution system. In a report comprising two essays, Milking the System: How Agricultural Supply Management Impedes Trade Opportunities and Egregiously Transfers Income, Professor Ian Lee argues that SM is a major obstacle to trade growth while Professors Chris Sarlo and Larry Martin show how SM transfers income from poor consumers to relatively well-off farmers.

The National Post published an op-ed by MLI's Brian Lee Crowley and Jason Clemens based on the paper and it was republished in the Calgary Herald, Vancouver Sun, Waterloo Region Record, Guelph Mercury, and Windsor Star. Columns highlighting the report were also published in the National Post and Toronto Star. MLI's Brian Lee Crowley based his Ottawa Citizen column on SM and it was quoted in the National Post. Finally, Crowley appeared on CTV's National Affairs and CBC's The House to discuss the report and MLI's Laura Dawson wrote about the TPP in the Financial Post. For more details, click here.

MLI Senior Fellow Laura Dawson's latest Commentary, Potash and BlackBerries: Should Canada treat all foreign direct investment the same?, has led the debate on how we think about foreign direct investment (FDI). The Ottawa Citizen published an editorial endorsing the Commentary and op-eds and columns appeared in leading daily newspapers across the country.

In the Commentary, Dawson says that we have nothing to fear from FDI. Canada's rules for governing foreign investment are adequate to balance public policy concerns regarding national security and foreign ownership in sensitive sectors with economic growth and competitiveness. However, Dawson says that it is vital to differentiate between private foreign investment and those from state-owned enterprises (SOE) as SOEs may put the interests of their home country ahead of commercial objectives. "Our FDI decisions must be based on a confident assessment of interests, not fear of foreigners," concludes Dawson.

An op-ed by Dawson was published in the Calgary Herald, Waterloo Region Record, Montreal Gazette and Guelph Mercury and she was quoted in two columns in the Toronto Star on FDI and RIM.

The Macdonald-Laurier Institute (MLI) is pleased to announce the appointment of Philip Cross, who recently stepped down as the Chief Economic Analyst at Statistics Canada, as our new research and editorial coordinator. Mr. Cross joins MLI after 36 years at Statistics Canada where he specialized in macroeconomics. He was appointed Chief Economic Analyst in 2008 and was responsible for ensuring quality and coherency of all major economic statistics. He is a frequent commentator on the economy and interpreter of Statistics Canada reports for the media and general public.

Mr. Cross is responsible for the institute's full range of research as well as assisting Dr. Crowley with the development and management of the organization as a whole. He can be reached at pc@macdonaldlaurier.ca or by telephone at (613) 482-8327 ext. 106.