Thank you for being here today, Governor Carney. It is always a pleasure to have you here at our committee.
I'm going to ask you about two things, if I get enough time to do so.
First and foremost, something that we've often heard with regard to trade is the need for Canada to diversify its trading relationships, especially when we're considering the prolonged downturn or slowdown in the economy of our largest trading partner, the United States. You've spoken about the critical importance of this issue before, and especially with regard to the rise of emerging markets. There are still people here who believe, contrary to our belief, that perhaps there is no need to become more globalized in the trading area. And some have even suggested that we actually try to go towards some protectionist measures.
I think you've been pretty clear about that, and in fact I'd like to refer to a speech you made at the Saint John Board of Trade in late September, in which you said:
To put it bluntly, the U.S. economy can be expected to be relatively weak for some time as households repair balance sheets and governments wrestle with deficits. ...Canada will have to look elsewhere to grow our exports. Emerging markets already account for almost one-half of the growth in all imports over the past decade. ...We will need to take advantage of such opportunities.... If we do not develop new markets and if we do not improve productivity, the cumulative loss of income from slower potential growth could be almost $30,000 for every Canadian over the next decade.
Can you share your views on why Canada needs to engage more aggressively in emerging markets? And what would be the implications if Canada actually stopped pursuing trade diversification?