The Trump administration has repeatedly promoted mercantilist industrial policy.
Canada’s share of inward FDI to the OECD in 2018 was 1.6 percentage points below its average annual share for 2012-2014.
The amount invested in Canada by foreigners declined 55.1 per cent.
The Trudeau government has raised taxes on upper earners, created mass uncertainty with its carbon-pricing scheme, and run huge budget deficits.
In 2017, the balance of Canada’s FDI account was about minus $4 billion.
The U.S. advantage over Canada is not surprising in light of recent U.S. tax cuts and deregulation.
Foreign direct investment in Canada was $31.5 billion in 2017—down 56.0 per cent since 2013.