Strong Corporate Diplomacy: Canada’s Balanced Approach Sets a Model for Economic Relations
Strong Corporate Diplomacy: Canada’s Balanced Approach Sets a Model for Economic Relations
The Inflation Reduction Act has served as the centerpiece of broad-sweeping legislation passed by the Biden Administration. Aimed at combatting climate change through green energy investment, reviving struggling communities, and increasing economic opportunity for America’s middle class, its passing has been praised by supporters as a critical step towards revitalizing American industry. However, it has raised some diplomatic conversations in Europe about whether it constitutes protectionism by the United States.
European Union critics argue that the Inflation Reduction Act’s subsidies and tax credits discriminate against products imported into the U.S. to the potential detriment of EU companies, creating an unlevel playing field. With global trade facing headwinds and the global marketplace facing increased challenges due to the events of the past few years, building strong economic relations between nations has never been more critical.
To navigate this precarious time for the global economy, policymakers would be wise to look North for answers. Canada provides an excellent example of a balanced approach to trade, which could serve as a model for the future.
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