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Liberalization of Markets

Should we be protected against foreign outsourcing?

With markets moving toward increasing globalization, the prospect of seeing companies transfer part of their activities abroad is causing growing alarm. Many are worried in particular about the rising economic influence of some Asian countries such as China and India that can call upon an ample supply of increasingly qualified workers who are willing to work for a fraction of the salaries paid in industrialized countries. Pessimists predict a dark future for labour markets in developed countries if nothing is done to halt job transfers to emerging countries. The temptation may thus be great for Canada to follow the example of the United States, which has already taken protectionist measures to counteract the outsourcing movement.

Towards open skies for airlines in Canada

The federal Ministry of Transport appears prepared to take advantage of the current international trend toward open markets in aviation and to move ahead with the liberalization process that began in the early 1980s. In particular, it is considering the possibility of allowing foreign airlines to fly between Canadian cities – known as “cabotage” – and of raising the limit on foreign ownership of airlines in Canada, currently set at 25%. Both would be excellent news for consumers and for the Canadian economy generally.

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