Canada will officially oppose international efforts to get the world’s major economies to impose a global bank tax, government sources tell the Financial Post.That's right: when it comes to limiting the harmful effects of financial speculation, the Cons aren't even pretending to be willing to listen to what the world has to say. Instead, they plan to use Canada's seat at the table for the sole purpose of preventing the rest of the world from building any disincentives to reckless risk-taking into the global financial market. And they're even willing to say up front that their only reason for doing so has to do with political branding rather than the merits of the policy.
This could potentially ignite a major divide among Group of 20 leaders at their summit meeting in Toronto this summer, and further thwart efforts to implement uniform financial regulations in the post-recession era.
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“Canada is going to oppose any tax on financial transactions,” said one source, adding the tax runs counter to the Conservative government’s reputation for lower taxes. “The government wants it known that a deal on a bank tax isn’t going to happen.”
It remains to be seen how determined Gordon Brown is to seek out an international consensus on the issue. And in fact, if the issue manages to gain any sustained attention in Canada, I'd fully expect the Cons to pretend to open their minds on the issue once the audacity of their current stand becomes better known.
But based on the Cons' immediate response, there's little reason for the rest of the world to think Canada will be a good-faith negotiator on anything to do with financial regulation. And that could force the international community to work out the future rules of engagement in a forum where Harper can't stand in the way.
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