Editorial - 17-7

Much has been made in recent weeks about fears that Canada may suffer at the hands of the Bush administration for failing to support the recent invasion of Iraq. A more constructive approach may be to look for opportunities that arise from the shifts in fiscal and research policy being undertaken by the US government.

Two years ago, a noted US scientist addressed an Ottawa conference and urged Canadians to take advantage of the restrictive US policies governing stem cell research. He argued that the US research community’s inability to effectively participate in this promising area of medical research represented an opportunity for Canada to take the lead and attract American scientists to our labs.

The similar argument could be made for the disastrous fiscal policy now being implemented south of the border. The Bush administration inherited a major budget surplus and transformed it into a multi-trillion dollar deficit, compounded by massive tax cuts unlikely to provide meaningful fiscal stimulus. The yawning trade imbalance continues to grow.

In Canada, the immediate impact has been a surge in the value of our currency. But rather than view this as a threat to exports, Canadians must quickly learn how to turn adversity into advantage.

Canada has pursued a far more reasonable fiscal policy and continues to post federal budget surpluses. We are about to unleash a new innovation policy aimed at making Canadians more productive. By identifying and exploiting our advantages and promoting them to the world, the misguided Bush policies could prove to have a silver Canadian lining.