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In today's global economy, Canadian companies must contend with the most successful and creative companies in the world. This competition occurs every day in places like Beijing and New York and, particularly, here at home. The winners are those that move fastest, reach highest and are best prepared.

The Canadian Chamber of Commerce will provide its recommendations in a public document to the Competition Policy Review Panel later today, and what follows summarizes our most salient points. Most of our strategy focuses on the domestic environment because, more often than not, it is conditions here at home, rather than any particular foreign barriers, that most hamper Canadian competitiveness and undermine our ability to grow.

Canada needs to take action now. Experts cite a number of essential factors for attracting investment, particularly in high-value functions in global value chains. These include good infrastructure (especially for transportation and logistics), skilled workers, less bureaucracy, low taxes and easy conditions of employment.

The government took an important first step by creating the review panel. Now it needs a competitive policy framework.

The world won't wait for Canada to get its house in order. Now is the time to engage the new economic powerhouses in Asia and elsewhere, as our international competitors are already doing. If Canadian companies wait for ideal conditions, others will seize the most attractive opportunities and we will be left to compete for the second-best.

Canada has to reach higher. The Competition Policy Review Panel must not shy away from proposing a big, bold initiative to attract investment, as was done in Ireland, where low corporate income tax rates and a clear focus on the benefits of education drove impressive economic growth. We need to strive, federally, provincially and territorially, to be the most tax-competitive jurisdiction in the world while making investments in strategic areas. To do so, we will need to develop clear priorities.

Part of reaching higher is promoting Canada as an attractive place to invest. We need to establish a pan-Canadian brand, with common logos, images and themes to be used by federal, provincial, territorial and municipal governments. Companies generally choose to invest in Canada on the basis of national considerations and then look for the most attractive locality, not the other way around. By working together from a united message, everyone can experience greater results.

We also need to elevate our goals. Canadians are too often satisfied if we find ourselves in the top 10 in global rankings. This comfortable acceptance of mediocre performance must change. Companies looking to invest abroad give full consideration to two or three locations at the most. If Canada is serious about being a destination of choice for capital, talent and innovation, we need to improve our competitiveness so we are consistently viewed by foreign companies as being in the top two or three possible investment locations.

Part of elevating our goals means we must take a more confident and mature approach to foreign investment. The Investment Canada Act, which is now more than 20 years old, encourages an insular focus by asking every investor to demonstrate “what's in it for us.” In the intervening years, Canada has embraced free trade and become a much stronger economy. It is time to reverse the assumption that foreign investment is a potential negative that has to be justified. We need to start from the standpoint that it is a good thing that foreigners want to invest in Canada, and instead focus only on those few instances where there is a clear and established downside. We call on the review panel to advocate the implementation of a truly open investment policy that serves Canada's needs while preserving the ability to protect national security and other clearly articulated public purposes.

Finally, we need to strengthen our companies. One factor here is Canada's corporate and securities laws and regulations, which make Canada a relatively takeover-friendly jurisdiction. They have the unintended consequence of making Canadian companies vulnerable to takeovers, despite the fact they are often being financially stronger than their bidders.

As more Canadian companies operate in international markets, Canada's productivity gap will shrink. Recent Statistics Canada data show that foreign-controlled companies operating in Canada and Canadian-based multinationals are more competitive than the Canadian average. While a variety of factors contribute to these companies' higher productivity, a major factor is their size and their exposure to international competition.

Nearly 95 per cent of Canadian companies are small or medium-sized. They form the backbone of Canada's economy, and competing in international markets will make them more efficient and productive, as well as helping them grow. However, when the domestic regulatory burden is too heavy, Canadian SMEs suffer a serious handicap. In many cases, the regulatory requirements are so great that they force companies to abandon expansion plans. Removing such shackles will go a long way in allowing Canadian companies to compete.

Factors like our geographic location and our resources give Canada a privileged position, but this cannot be an excuse for complacency. Canadian companies, led by the Canadian Chamber of Commerce, need to work with governments to make Canada more competitive. Together, Canada can experience swifter growth, attain higher productivity and foster stronger companies that generate more jobs and a higher standard of living. Then, all Canadians can be winners.

Perrin Beatty is President and CEO of the Canadian Chamber of Commerce