Most of the reasons put forward for the collapse in global trade, such as constraints on the availability of trade financing and exceptionally weak economic activity in Europe, have little direct relevance for Canada.7 An alternative explanation has been put forward, however, that also has a foreign origin and holds a little more promise.
It would be fascinating if, in another year, we find ourselves looking back at a US economy that had outperformed expectations. (There is still of course a critical need for the US to craft a measured and credible path back to fiscal sustainability. That particular drama could continue as long as the European one.)