Canada to lay out new industrial vision today

There will be two big drivers of how well global economies perform in the years ahead:

1. How well countries negotiate on tariffs with the United States
2. How well countries adapt to tariffs

It’s a big week on both fronts for Canada as Carney visited Washington and negotiators remain there. Going ahead, top Canadian policymakers are trying to craft a plan to cope and pivot the economy. In Toronto today, Innovation Minister Mélanie Joly is set to deliver a three-point strategy. Some of the details were shared with the Globe & Mail.

• In the short term, Ottawa is determined to prop up critical sectors of
  the Canadian economy with financial relief until these industries can
  adapt and pivot to new products and markets. This has already included support for steel and lumber.
• Canada will rebuild its military domestically with a Buy Canadian policy and the new Defence Investment Agency. One company cited was aviation simulator CAE (CAE.TO), which can ‘count lon long-term defense contracts’. “For the first time in decades, we will be re-creating a military industry in our country,” she said
• The government intends to unveil measures to attract foreign investors
  and high-quality talent and researchers from the United States
• Ottawa’s new major projects office will fast-track infrastructure projects

USD/CAD is down 4 pips to 1.3945 today.

Shares of CAE are indicated slightly higher in the premarket.

This article was written by Adam Button at investinglive.com.