A good place to start is concluding a modernized NAFTA at the earliest possible opportunity to defend Canadian export interests. At the same time, Canada urgently needs to diversify its export markets to facilitate the movement of products, services and people more quickly, reliably and cheaply to key markets in the world.
As Canada continues to make the case for freer trade among nations around the world, it is important we not forget there are still too many barriers to trade within Canada. Our complex network of overlapping regulations from all levels of government creates a costly and uncertain environment for business. Regulatory reform is a low-cost way to improve Canada's long-term economic growth and its competitiveness.
Tax policy is another area where Canadian competitiveness is rapidly eroding. Canada's corporate income tax rate is now higher than both the U.S. and the OECD average, and Canada lags behind G7 countries, the U.K., the U.S. and France.
A comprehensive review of our cumbersome and inefficient tax system is needed. With sufficient political will, Canada can create an internationally competitive tax system that rewards entrepreneurship and encourages investment in the technologies, skills and capacity businesses need to grow. Exploring innovative tax solutions, such as implementing accelerated capital cost allowance, can also have an immediate impact on our business investment.
A highly competitive venture capital industry can also incentivize investments in technology companies and start-ups, including SMEs, through tax credits and exemptions.
In an increasingly innovative economy, Canada should focus on implementing digital infrastructure policies that facilitate the deployment of new technologies, patented inventions, intellectual properties and innovative processes.
Canada needs to know what skills are in demand so we can train our young people and bring in the people we need for the industries of today and the future. Our members have repeatedly told us skills gaps and the challenges of finding the right workers are some of the biggest issues they face. They need the right people at the right time in the right place. This means building and keeping talent at home as well as attracting the best and brightest from around the world.
Let me conclude with the following: There is no greater priority today than improving Canada's competitiveness. Simply put, competitive companies are profitable companies. When businesses are profitable, they grow. When they grow, they invest in new technologies, new processes and new products. They retrain their employees and they hire new staff. That's good for business, good for government and good for Canada.
Thank you for the opportunity to meet with you this morning.
I look forward to our discussion.