Could Amazon be the first of many bringing jobs to Canada?
March 11, 2010 · By Sean
Amazon.com is looking to open a new Distribution Centre here in Canada, if Canadian Heritage allows for it.
Canadian Heritage has 45 days to complete the review launched Jan. 27, but it could be extended by another 30 days if needed.
Walid Hejazi, a professor of international business at the University of Toronto, said he believes the government is close to allowing Amazon in to Canada, a move that would be consistent with the government’s recent steps to open Canada to more foreign investment.
And doing so would provide better prices and more jobs to Canadians.
Paul Misener, Amazon’s vice-president of global public policy who has been meeting with government officials, says a Canadian distribution centre would provide a benefit to the country.
“We are pleased to be continuing to communicate with policy-makers about the benefits that we have brought to Canadian culture both within Canada and globally,” he said Wednesday.
With the Canadian government opening up the telecom and satellite industry to foreign ownership allowances, Amazon could potentially be leading the way (hopefully) for foreign corporations coming into Canada and being able to take advantage of the benefits of doing business in Canada.
But, in many ways, Canada has been a closed market to so many different competitors because of those very foreign ownership laws and how they slam up against our cultural preservation limitations.
However, if it happens, and more follow, those industry “giants” as some call them, will only add to jobs in Canada which leads to a larger tax base, both corporately and in individual spending.
And Jack Layton wants to prevent tax benefits for “big business”. Michael Ignatieff doesn’t think the current Budget will create new jobs for Canadians.
“We will vote against it, but in a way that does not provoke an election,” Liberal Leader Michael Ignatieff told reporters, speaking in French. “I don’t see a path in this budget that gets Canadians back to work. This is the key thing.”
Mr. Layton and Mr. Ignatieff, this is how this Budget could, and I stress could get Canadians back to work and raise our GDP to levels that can accomplish what the Budget proposes.
Instead of poo-pooing the Budget just because you hate the Conservatives, try finding ways to make it work, or make it work better.
Support the Government and encourage these initiatives that are bringing investors and jobs to Canada!
At this point, Sean, the only thing the LPC or NDP can do is vote the budget up or down. If the CPC was interested in substantive input into the budget, they should have actively sought input from the other parties. Proroguing Parliament, and then returning when the budget was ready, does not provide much opportunity for this. There was no real reason for prorogation beyond self-serving partisan interests, and certainly none that could justify proroguing for so long.
Now, let me agree with the majority of your post. I think dropping many of these foreign ownership restrictions and other barriers to entry into the Canadian market would be great for our economy and our consumers.
Interesting note: while the Throne Speech mentions relaxing foreign ownership rules for the telecommunications and satellite sectors, the Budget only mentions satellites. Given the recent Globalive and Mobilicity issues, this is an interesting contradiction. (H/T Telecom Trends)
True, at this point, that’s about all they can do as they’ve already painted themselves into that position.
Proroguing Parliament doesn’t necessarily mean that they can’t talk or that business stops altogether. Stephen Harper did meet with the opposition leaders to solicit input, but as I’ve described elsewhere, it’s the prerogative and the right of the sitting government to create and implement a budget that suits their goals and directions. They are the Government. Opposition Parties have an obligation to present reasonable alternatives if they don’t like what the government is proposing, and not just grousing over what they don’t like and call that being responsible opposition. Failing that, their recourse is to defeat the government or form a coalition if they have the numbers to do so and are able to convince the GG that this is the best course of action.
That’s how it all works. Deliberately avoiding defeating the government by playing numbers games is pure theater, and unworthy of our democracy.
But, that’s neither here nor there anymore. I like to complain as much as any other Canadian. ;)
Mind you, the Opposition Parties still have the opportunity to work with the Government on what the Final Budget looks like.
Regarding the contradictions, hopefully satellite access includes all access, telecommunication notwithstanding.
Amazon would provide real jobs with associated real productivity. Swing wide ye gates…
American ownership? Without a doubt this will increase.
Increase in jobs in Canada? This would depend on the value of our dollar going forward. People seem to high five each other when we hit par with the American dollar. I look around my office full of well paid professionals providing services to American clients and worry immensely.
RD, Canada needs to break itself from it’s addiction to a low Canadian Dollar. We’ve become so dependent on it that we actively seek means to artificially deflate it.
It’s been this way for so long because of the supremacy of the American Dollar and the value that added coming into our economy. But as we grow ever more globally and deal with other countries, weighing the loonie against the greenback as other currencies rise against it, I think we’re only damaging ourselves and our ability to compete globally.
Any business that has structured itself to rely on a low Canadian dollar should have learned some very valuable lessons about flexibility recently.
platitudes vs. reality Sean.
Any Canadian business that competes internationally to sell goods and services will be conscious of dollar fluctuations.
If Canadian labour is too expensive, countries will invest elsewhere.
I’d rather have a low dollar as an incentive than have governments paying out incentives simply to hire Canadians. It becomes a form of blackmail.
Flip the coin, what are the benefits of a high Canadian dollar?
The benefits of a higher Canadian Dollar gives us stronger buying power. That can be good or bad. I’m not arguing that.
I also understand that any business that competes internationally to sell goods and services is affected by the dollar fluctuations. My problem comes when those businesses structure themselves to be able to operate only if the Canadian dollar is low and will fail if it rises.
It’s stupid and irresponsible.
Say we decide that we want the Canadian Dollar to fall below the American Dollar in perpetuity. How far are we willing to go to maintain that? As the American Dollar falls, are we going to continue to debase our own currency until it becomes virtually worthless? At what point do we accept that for a time (possibly long term), that the Canadian Dollar is going to be worth more than the American one and adapt?
I never want to see our Dollar debased to the levels of a Peso, just to stay under the value of the American Dollar.
The benefits of a high Canadian dollar are greater buying power, as Sean has said. This can make it easier for Canadian companies to invest in productivity-improving investments in their facilities, leading to a more efficient workforce. You can still see the detrimental effects on our productivity from our years-long slump in the 0.60-0.80 USD range.
I figure our dollar will surpass that value of the American dollar but I think it’s resource based. This will be good news for exporters who export a commodity that is in infinite demand (helloooo Alberta). For areas that export goods and services, I see this as good news.
We’ve lost so many sectors to our economy (textile, manufacturing, IT) that I don’t see who benefits from increased buying power if there are no Canadian jobs left.
Most companies these days are outsourcing their services to 3rd world providers. An over valued Canadian dollar is not exactly going to stimulate in influx of jobs in manufacturing or in services. Instead of seeing more American companies opening up plants and branches here, you’ll simply see them realize that it’s much cheaper to employ the labor elsewhere.
I’m not advocating that our dollar should be a peso, or 60 cents, I’m just saying I had many more major projects signed with American clients when our dollar was even in the high 80s vs when it was at par.
Take this example with Amazon. They’re going to open a distribution center here in Canada to facilitate our buying of their products. Would they open a branch or head office?
Abbatoir, by dropping foreign ownership restrictions, foreign companies have increased buying power when the dollar is low, not high. If you work for IBM, Microsoft, Boeing etc, investing American dollars on Canadian facilities goes further with a below par dollar.
Locally owned businesses on the other hand would benefit from increased buying power but for companies who retain revenues in Euro, USD, I don’t see how this would be the case.
That’s where our Corporate Tax rates come into play, and it’s what Jack Layton doesn’t see (all he sees are the banks and oil companies). If it becomes more profitable to operate out of Canada because of our much lower CTR, then we can encourage other businesses to relocate.
And I suppose we could offset the loss in tax revenue by scrapping medicare and transfer payments to Quebec!
That’s a whole other discussion RD.
twas sarcastic.
LOL I figured.
abbatoir hit the nail on the head. since our manufacturing base has already factored in a stronger dollar it would be ludicrous to cut ourselves off at the knees by debasing our currency. productivity in this country has been routinely lacking behind the US for years. i am looking into purchasing equipment for my shop to do just that, just waiting for parity.
now if only we could rid ourselves of the ridiculous minimum wage laws, canada could truly be a competitive environment.
People looking to make a big purchase can’t wait for parity. It’s in THEIR self interest. When labour costs are too high and foreign owned companies close up shop, putting countless people out of work, who cares…
At least some people had the purchasing power to buy some equipment at parity.
If our companies were not owned on foreign soil, I’d be fine with this. However, the reality is that an expensive Canadian dollar is nothing more than a greater expense on the income statement.
My focus is on employment, not international buying power.
The last anonymous post was mine. Must have forgotten.