Thankfully, Canada and Australia aren’t carbon copies of each other. First, Canada shares the world’s longest undefended border with the top economy on the planet, while Australia is an island, far from the nearest large market. Second, Canada is closer to OECD markets, while Australia’s nearest ports of call are in the emerging world. Third, the industrial mix is similar, but Canada’s oil and gas sector dwarfs Australia’s. In manufacturing, Canada has a vibrant auto sector; down under, that industry folded its tents years ago. And then there’s climate, where seasonal times are reversed, and even the coldest winter temperatures hardly ever go into single digits. Still, the similarities likely outweigh the differences – so where do the greater mutual opportunities of the future lie?
Smaller countries generally have a rougher ride in today’s global economy. Scale is a critical competitiveness factor in an increasingly global world, and in general, the larger economies do it better. For the most part, they have the enduring electronics giants, the Wal-Marts, Amazons or Alibabas, the aerospace giants, and so on. And there’s a fear that this increased, large-market concentration will only continue. With populations of 37 million and 25 million respectively, Canada and Australia hardly have the domestic market scale that easily incubates giants.