De-globalization became a buzzword back in March when we were fighting over toilet paper. The answer to shortages of staples, face masks, ventilators and medicine seemed obvious: local production. Sprawling international supply chains had to get shorter. It was a matter of life and death.
Guess what? It’s not happening, at least not in a significant way. “No,” Keith Creel, chief executive of Canadian Pacific Railway Ltd., bluntly said on Oct. 20 when an analyst asked him if CP’s customers were talking about “near-shoring.”
The Bank of Canada has uncovered a similar sentiment. “In the near term, most firms do not expect to pivot away from their existing processes and relationships,” the central bank said in its Business Outlook Survey on Oct. 19. Furthermore, merchandise imports from China averaged $4.27 billion per month between April and August, compared with an average of $3.83 billion over the same period in 2019, according to Statistics Canada data.
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