International trade will be different in future: Bank of Canada governor

By Ovunc Kutlu

ISTANBUL (AA) - The Bank of Canada Governor Tiff Macklem said Tuesday that international trade will be different in the coming years due to emerging major trends.

Advanced economies are leading the slowdown in global trade, Macklem said in his speech at the Canada-UK Chamber of Commerce in London.

"Trade in goods is slowing, while trade in services is rising. This growth is happening because services like training or technology support can now be delivered from anywhere," he added.

He said global trade relationships are changing, as especially China's exports have been competing more directly with goods produced in advanced economies.

"This has led to trade tensions and national security concerns," he added.

Macklem said Canada needs to be ready for the opportunities and the disruptions amid the changing trends in international trade.

"Our export growth is slowing even though the advanced economies we trade with are consuming more," he said. "We rely on exports for roughly one-third of our income. Imported components feed into many of our key industries, such as manufacturing."

"The countries producing manufactured goods are changing, geopolitical tensions have caused friction, and public support has faded," the governor added.