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Darryl White, CEO of Bank of Montreal (BMO), emphatically called for clearer trade & tax rules as a prerequisite for Canada to attract global capital and successfully execute large nation-building infrastructure projects. Without certainty on interprovincial trade barriers, tax policy, and the USMCA framework, White warns the country risks losing investor confidence.
A Call to Action: Why Clarity Matters Now
White spoke at a conference on U.S.–Canada relations, positioning BMO as ready and willing to finance and advise on large-scale infrastructure, but only if the regulatory and trade environment is stable. He framed the message succinctly: “We can help with the financing, with the advice … we can also help with the attraction of international capital … but we need clarity.” Reuters
He pointed out that global investors have taken notice of Canada’s promise, but haven’t been fully convinced due to persistent ambiguity in trade & tax rules frameworks, especially when comparing Canada’s rules against the competitive environment elsewhere. Reuters+1
In parallel, Dave McKay, CEO of RBC, criticized Canada’s cautious regulatory pace and risk-averse culture, warning they slow project approvals and discourage bold investment. “We’ve bubble-wrapped our economy,” he said, urging more decisive action. Reuters
The Stakes Are High: Infrastructure, Competitiveness & Investment
Canada is aiming to accelerate what are being called “nation-building projects” from ports to pipelines as a way to offset challenges from U.S. tariffs and global headwinds. But such ambitions depend on capital flows, which in turn depend on policy certainty. Reuters
White estimated that nearly 40 % of BMO’s income comes from operations in the U.S., making Canada’s role in North American infrastructure even more critical to the bank’s strategy. Reuters
He also flagged three persistent hurdles:
- Interprovincial trade barriers that impede seamless movement of goods and services across Canadian provinces.
- Uncertain tax regimes that discourage large, long-term investments.
- Ambiguity surrounding the USMCA (United States-Mexico-Canada Agreement) and how it will evolve.
“Capital craves certainty,” White argued a guiding principle he’s long advocated in public commentary. BMO+1
Wider Context: Canada’s Competitiveness Under Scrutiny
White has written previously about Canada’s longstanding challenges with competitiveness, productivity, and regulatory consistency. In a Globe and Mail op-ed, he described trade disputes as a wake-up call to Canada’s systemic uncompetitiveness in tax, regulation, and policy tone. BMO+1
More recently, his commentary has emphasized the urgency of aligning policy with economy-wide opportunity. In his piece “Navigating Canada’s path to becoming an energy superpower,” he calls for reforms that allow the country to capture more value in natural resources while maintaining environmental standards. BMO
Notably, the federal government has made some moves in this direction for example, signing legislation to end federal barriers to interprovincial trade, enhancing labour mobility, and pledging to expedite major projects. But implementation remains slow and patchwork. BMO
What Global Investors See (and Worry About)
From the perspective of an international capital allocator, the lack of clarity is material. Investors weigh not just opportunity, but the predictability of rules, dispute resolution mechanisms, and consistency across jurisdictions.
Some of their key concerns:
- Regulatory risk: Shifting provincial or federal policies could change project economics midway.
- Interprovincial fragmentation: The need to negotiate distinct rules in different provinces makes scaling infrastructure projects harder.
- Trade uncertainty under USMCA: If Canada’s position is seen as unstable, it undermines cross-border confidence.
- Tax volatility: Sudden changes to corporate, capital gains, or royalty taxes could derail long-term financing plans.
As White put it, “We’ve got their attention, but we haven’t convinced them.” Reuters
Where This Breaks Down: Examples & Impacts
Imagine a large pipeline or green energy corridor intended to stretch from Alberta through Saskatchewan into Quebec. To finance and execute this, you’d need:
- Seamless trade & transport across provinces but existing red tape, regulatory misalignment, and geographical constraints complicate movement of equipment, materials, and labor.
- Stable tax treatment developers need assurance that projected returns won’t be undermined by retroactive tax adjustments or new obligations.
- USMCA alignment because the project may supply goods or services beyond Canada, compatibility with continental trade norms matters deeply.
When those assurances are lacking, risk premiums rise, financing costs escalate, and many projects never move beyond the drawing board.
For many regional and smaller firms, the uncertainty is even more damning they lack the scale or capital cushion to absorb policy risk.
What Must Happen: White’s Prescription
White’s recommendations are not vague. He lays out specific pathways:
- Legislate clarity trade, tax, and investment laws must be stable, transparent, and insulated from volatile political cycles.
- Finish interprovincial reforms remove internal trade barriers, allowing provinces to transact freely without duplicative regulation.
- Optimize permitting & approvals streamline processes so major energy, resource, and infrastructure projects aren’t buried under delay.
- Signal consistency to markets Canada must speak and act with credible, long-term intention to attract patient global capital.
In short: the era of slow, incremental reform must give way to sweeping structural clarity.
Pushback & Challenges
- Political risk: Different provincial governments may resist ceding control on trade or tax matters.
- Environmental & Indigenous concerns: Large projects (pipelines, energy corridors) will inevitably raise local opposition, requiring careful consultation and risk management.
- Global competition: Other nations are also vying for the same capital; Canada must compete not just on resources but on predictability of law.
- Policy inertia: Past governments have attempted some reforms, but execution often faltered.
Even White acknowledges that “strategic patience” is required reforms must be durable, not superficial. BMO
Why This Matters for Canadians
For average citizens, these debates aren’t abstract. Better infrastructure means safer roads, cleaner energy, more trade jobs, and regional economic growth. But those gains are only possible if projects attract global finance and scale.
Unclear rules and policy whiplash deter investment, raise borrowing costs, and stall development. In provinces weighed down by infrastructure deficits or energy potential, the stakes are especially high.
If Canada is to realize its ambition as a more integrated, outward-looking economy, it must build trust first in its policy framework, then in its ability to deliver.
Fact Check & Verification
Here are relevant news and sources you can check for further verification:
- Reuters: BMO’s chief seeks clarity on trade in order to finance, advise on Canada nation-building projects https://www.reuters.com/business/bmos-chief-seeks-clarity-trade-order-finance-advise-canada-nation-building-2025-10-08/ Reuters
- Benefits & Pensions Monitor: Waiting for the signal as Canada’s growth hinges on policy direction commentary on White’s comments Benefits and Pensions Monitor
- BMO / Capital Markets insights: trade & tax rules The trade crisis is a wake-up call to how uncompetitive Canada is op-ed by Darryl White BMO
- BMO / Capital Markets insights: Navigating Canada’s path to becoming an energy superpower White’s vision for long-term Canadian growth strategy BMO
