We may be tempted, for example, to modify our labour laws and other aspects of our social policy to attract investment. Where laws can be improved within Canada's overall labour and social context, such ideas should be adopted. But we must be cautious of an unthinking downward spiral, where we strip our laws of their balance and protection in the name of economic flexibility, without regard to the social consequences. To make these choices sensibly, we must be conscious of the way our system of labour relations actually works and, we must be confident that, despite occasional conflict, it will help to keep Canadian labour productive and competitive. This is particularly true in our dealings with the United States, because of its importance not only as a trading partner, but also as a principal investor in our economy.
American laws are in some respects similar to Canadian laws, but there are subtle differences.
For example, American employers spend much more on third party insurance programs to cover health care. Americans also customarily spend more of their own funds on higher education. We make no comment on which social policy is right, but simply point out that one cannot extract particular aspects of a country's labour policy for comparison without looking at the underlying compromises and consequences. Maintaining International Labour Standards Canada has long been active in supporting international labour standards. Such standards work to protect countries against the labour equivalent of product dumping.