Canada’s economic and national security go hand in hand: Senator Ross
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Though we have long maintained a mutually beneficial relationship with many of our allies, we can no longer rely on that. In our current geopolitical reality, we are facing a turbulent road ahead — one that poses a threat to our economic security and well-being.
Since the Canada-United States Free Trade Agreement in 1989, Canada has increasingly become a trading nation. Today, our trade agreements give us access to 61% of the world’s GDP and 1.5 billion consumers around the world, of which our businesses are increasingly taking advantage. More than 181,000 Canadian businesses export goods internationally, and these exports support one of every six jobs in our country.
For the last 30 years, trade has been a mechanism for economic growth. It still is today. However, we are seeing disruptions more than ever. These include supply-chain disruptions during COVID that required businesses to pivot and the ever-rising protectionism from our allies and partners around the globe — like the United States, which is using unfair trade practices. Now, many Canadian companies are increasingly finding themselves in uncertain territory and facing unprecedented economic challenges.
Businesses of all sizes and all sectors are in the crosshairs of foreign governments seeking to advance their own national interests by targeting trade, investment partnerships or access to technology. These foreign industrial policies and targeted trade measures are protectionist in nature and, over time, will have a massive impact on Canadian businesses and our economic security.
Foreign direct investment has come under increased scrutiny over the years. Recently, through the Investment Canada Act, the Government of Canada updated the foreign direct investment review policy. These updates mean the government will review investments in this country on national security grounds and on whether they could undermine our economic security. The guidelines outline the initiation of a review and what factors could represent national security concerns. Namely, these include the use of Canadians’ personal data, technology use, access to our critical minerals and investments by state-owned investors.
That is not to say all foreign investments in this country are bad. In fact, many of these investments increase prosperity for Canadian businesses and Canadians themselves. However, we must remain vigilant in ensuring our security.
Digital security is one area of economic security that cannot be overlooked. We are in the age of technology. One where we often click “accept” on the terms and conditions outlining how our data will be used without a glance. But how do these apps, websites and devices impact our economic security?
Canada has a population just shy of 40 million people, most of whom use technology that stores personal data. That spans login information for your health-care provider’s portal, your online account with the Canada Revenue Agency and your rewards points with businesses. We are susceptible to cyber attacks and foreign agents who want to steal that data and take down or interrupt our networks.
We need to better equip businesses with the information, resources and education to properly store data and prevent attacks. It can be difficult as a small business to navigate what you can do, especially when resources and information are few and far between. In fact, the Canadian Institute for Cybersecurity at the University of New Brunswick develops innovative research, applications and data sets around cybersecurity. But more needs to be done on a larger scale to ensure we have the resources for home-grown businesses to protect themselves and their data.
It will be a tough road ahead, there’s no doubt. The uncertainty and ever-changing restrictions will be felt across all sectors of our economy, especially by small businesses and employees. Sourcing products from new suppliers, finding new markets for our domestic products, being conscious of foreign investment and increasing our digital security is not an easy task. There will be growing pains.
But amid this uncertainty, Canada cannot afford to be complacent. We have taken our position for granted for far too long and must now take action to broaden our horizons, diversify our economy and focus on our national security. We have many partners around the globe looking to work with us. All we have to do is say yes.
Senator Krista Ross represents New Brunswick. She worked with the Fredericton Chamber of Commerce for 20 years, as general manager from 1989 to 1997 and as CEO from 2011 to 2023.
This article was published in The Hill Times on April 24, 2025.
Though we have long maintained a mutually beneficial relationship with many of our allies, we can no longer rely on that. In our current geopolitical reality, we are facing a turbulent road ahead — one that poses a threat to our economic security and well-being.
Since the Canada-United States Free Trade Agreement in 1989, Canada has increasingly become a trading nation. Today, our trade agreements give us access to 61% of the world’s GDP and 1.5 billion consumers around the world, of which our businesses are increasingly taking advantage. More than 181,000 Canadian businesses export goods internationally, and these exports support one of every six jobs in our country.
For the last 30 years, trade has been a mechanism for economic growth. It still is today. However, we are seeing disruptions more than ever. These include supply-chain disruptions during COVID that required businesses to pivot and the ever-rising protectionism from our allies and partners around the globe — like the United States, which is using unfair trade practices. Now, many Canadian companies are increasingly finding themselves in uncertain territory and facing unprecedented economic challenges.
Businesses of all sizes and all sectors are in the crosshairs of foreign governments seeking to advance their own national interests by targeting trade, investment partnerships or access to technology. These foreign industrial policies and targeted trade measures are protectionist in nature and, over time, will have a massive impact on Canadian businesses and our economic security.
Foreign direct investment has come under increased scrutiny over the years. Recently, through the Investment Canada Act, the Government of Canada updated the foreign direct investment review policy. These updates mean the government will review investments in this country on national security grounds and on whether they could undermine our economic security. The guidelines outline the initiation of a review and what factors could represent national security concerns. Namely, these include the use of Canadians’ personal data, technology use, access to our critical minerals and investments by state-owned investors.
That is not to say all foreign investments in this country are bad. In fact, many of these investments increase prosperity for Canadian businesses and Canadians themselves. However, we must remain vigilant in ensuring our security.
Digital security is one area of economic security that cannot be overlooked. We are in the age of technology. One where we often click “accept” on the terms and conditions outlining how our data will be used without a glance. But how do these apps, websites and devices impact our economic security?
Canada has a population just shy of 40 million people, most of whom use technology that stores personal data. That spans login information for your health-care provider’s portal, your online account with the Canada Revenue Agency and your rewards points with businesses. We are susceptible to cyber attacks and foreign agents who want to steal that data and take down or interrupt our networks.
We need to better equip businesses with the information, resources and education to properly store data and prevent attacks. It can be difficult as a small business to navigate what you can do, especially when resources and information are few and far between. In fact, the Canadian Institute for Cybersecurity at the University of New Brunswick develops innovative research, applications and data sets around cybersecurity. But more needs to be done on a larger scale to ensure we have the resources for home-grown businesses to protect themselves and their data.
It will be a tough road ahead, there’s no doubt. The uncertainty and ever-changing restrictions will be felt across all sectors of our economy, especially by small businesses and employees. Sourcing products from new suppliers, finding new markets for our domestic products, being conscious of foreign investment and increasing our digital security is not an easy task. There will be growing pains.
But amid this uncertainty, Canada cannot afford to be complacent. We have taken our position for granted for far too long and must now take action to broaden our horizons, diversify our economy and focus on our national security. We have many partners around the globe looking to work with us. All we have to do is say yes.
Senator Krista Ross represents New Brunswick. She worked with the Fredericton Chamber of Commerce for 20 years, as general manager from 1989 to 1997 and as CEO from 2011 to 2023.
This article was published in The Hill Times on April 24, 2025.