U.S. corporations will not locate their production in Canada, without a tariff penalty. Without protection no resource-based economy can achieve a diversified output and export composition. Market forces reallocate resources and facilitate industrialization over time, provided protectionist and trade distorting policies are avoided. Access to international markets is essential. Canadian exports compete on the backs of low-paid Canadian workers.
Exports support high-paying jobs in Canada.
Knowledge-intensive activities generally have high productivity and real wages. Canadian exports of knowledge-intensive business services have been trending upward since 1969. Exports of business services sustain high real wage jobs. Foreign-owned subsidiaries are only here to serve the Canadian market. Only a few knowledge-intensive and high real wage paying service jobs are created in Canada.