Business sounds alarm on vulnerability

Article Abstract:

Business leaders are concerned about the country's economic sovereignty in a continental marketplace. The Canadian operations of multinational corporations are being hollowed out at the executive level, while large swaths of the economy have seen a jump in foreign control and are vulnerable to further takeovers. According to Dominic D'Alessandro, CEO of Manulife Financial Corp., a low Canadian dollar and high personal taxes have disintegrated living standards relative to the US, and contributed to migration of talented people southward. In addition to hollowing out of corporations, business leaders are worried about the migration of headquarters, which contribute to the reduction in opportunities for the young people and charitable contributions to community. Canada is particularly vulnerable to foreign takeovers because for a long time, the shares of companies listed on the Toronto Stock Exchange under-performed the US share prices. A Statscan study shows the US direct investment in Canada soaring since the 1988 Canada-US free trade agreement, rising to $173-billion last year from $80-billion in 1989. Total direct investment rose to $240-billion from $122-billion. Canadian policy makers point out that the country has also seen a decline of its share of global direct foreign investment. The amount of outbound Canadian foreign investment has now reached $257-billion. According to Dominic D'Alessandro, CEO of Manulife Financial Corp., Canadian corporate executives should improve their own performance in areas such as research and development, manpower training and innovation.

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Some Liberal MPs opposed to Onex bid

Article Abstract:

Onex Corp's C$1.8-million bid to acquire and combine Air Canada and Canadian Airlines International Ltd was opposed by Liberal MPs, stressing that the deal is not a good one for Canada's airline industry. According to Montreal, Canada-area Liberal MP Nick Discepola, the transaction would give Fort Worth, TX-based AMR Corp's subsidiary American Airlines too much influence over the country's airline industry.

Asset sales & divestitures, Acquisitions & mergers, Scheduled Air Transportation, Scheduled Airlines, Air Canada, Canadian Airlines International Ltd.

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Free-trade deal far off, economist says

Article Abstract:

The Summit of the Americas, which drew government officials and economic leaders from 34 countries, was held in Quebec City, Quebec. An economist, Paul Krugman of Princeton University, said that the economic conference would not produce a new free-trade deal.

Administration of General Economic Programs, Foreign trade, Trade Negotiations, Research, Conferences, meetings and seminars, International trade, Princeton University, Free trade, Summit of the Americas, Krugman, Paul

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