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MNI 5 THINGS:BOC's Schembri Calls For More Trade Liberalizatn>

By Courtney Tower
     OTTAWA (MNI) - Following are the key points made by Bank of Canada 
Deputy Governor Lawrence Schembri in a speech regarding Canadian 
potential output, in Ottawa, Ontario, Wednesday:
     -- Schembri made no direct to the current monetary policy stance. 
He repeated the economy is operating close to potential and the BOC is 
closely monitoring expansion in economic capacity. 
     -- Schembri called for more international and domestic trade 
liberalization if Canada's output and economic productivity are to grow, 
along with advances in education and immigration. Schembri said the 
Canadian economy's decline in capital investment and productivity 
following the 2014-2015 sharp fall in commodity prices "is now mostly 
behind us." He illustrated the decline by saying the BOC has found that 
potential output growth in Canada from 2009 to 2021 will average 1.8%, 
"much lower than the 2.7% average from 1982 to 2008." 
     -- Most helpful for lifting economic potential will be trade 
liberalization, Schembri said. Canada's economic agreements with Europe 
and the Pacific countries, as well as domestic inter-provincial efforts, 
"are  helping to reduce barriers and create opportunities for Canadian 
companies."  "Even as uncertainty about U.S. trade policy currently 
weighs on business investment and export growth," he said Canada's "firm 
commitment to trade liberalization will remain important for supporting 
solid potential growth in the future." 
     -- About education, Schembri said, "history needs to be repeated." 
Public and private investment in education had turned Canada from an 
agricultural nation to one of industry. Now "New technologies should be 
harnessed to provide broad access to the types of education and 
training" needed for the future. 
     -- On immigration, which already accounts for two-thirds of growth 
in Canada's workforce, Schembri said, the levels of immigration accepted 
each year must be raised. And there must be better matching of skills 
with "the elevated number of jobs vacancies in Canada." 
--MNI Ottawa Bureau;

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