Why the “Canadian Model” Cannot Be Used to Promote Financial Liberalization at the World Trade Organization
Despite the 2008 financial meltdown, the World Trade Organization continues to negotiate new rules that would promote foreign takeover of domestic banks and more deregulation. WTO advocates are using Canada to argue that a country can liberalize its financial sector yet suffer comparatively less from financial shocks.
This study by CCPA Research Associate Ellen Gould shows how the opposite conclusion should be drawn from the Canadian experience, since limits Canada placed on its WTO liberalization were key to stabilizing the banking system during the financial crisis.
