Canada's labour productivity increases by only 8% over a four-year period. Over the same period, its key trading partners experience a 20% increase in their labour productivity. All other things being equal, the most likely consequence for Canada is
an expansion of Canadian export volumes to these trading partners.
a loss of international competitiveness against these trading partners.
a 12% improvement in Canada's terms of trade.
the immediate implementation of a 12% tariff on all imported raw materials.
