Rural Canada and First Nations: Key Drivers of Canada’s Economic Sovereignty

Theo Argitis speech to the Assembly of First Nations Economic and Infrastructure Summit

Good afternoon everyone, 

My name is Theo Argitis. I’m Senior Vice President at the Business Council of Canada. 

Thank you for having me here today at this important conference.  
 
Before I begin, I want to acknowledge we are meeting on the traditional territory of the Mohawk Nations of Kahnawà:ke. 
  
I also want to recognize the leadership represented in this room — Chiefs, economic development leaders, business partners, and policy makers — all of whom are working toward a shared goal of strengthening economic capacity in First Nations communities and closing longstanding socioeconomic and infrastructure gaps. 

What I’d like to do in my remarks today is offer some broad framing that might help provide some broader context for the discussions you’ve been having over the past couple of days. Think of it as a bit of a big picture perspective. 

I want to talk about the world we’re living in today, how it is changing, and how those changes are reshaping economic opportunities in Canada — particularly in rural and remote parts of the country. 

And one of my main messages will be this: rural Canada is at the center of the economic transformation currently underway. 

The importance of rural Canada, I am sure, is not lost on this audience. First Nations communities are far more likely to be located in rural and remote regions of the country. 

So the success of building economic capacity for First Nations really goes hand in hand with building economic capacity in rural Canada. 

 And I would argue that we are entering a moment in history where rural and remote economies will be more important than they have been in decades. 

For many years we lived in a world defined by stability. We took moderation and predictability for granted. 

That era is behind us. 

Today, uncertainty and change are defining features of our lives. 

Just look at what the world has experienced in recent years: pandemics, supply chain disruptions, geopolitical rivalries, energy shocks, and growing political polarization in many countries. 

Just in the last FOUR DAYS a new war has erupted in the Middle East. 

This kind of unpredictable environment inevitably changes the way governments think about economic policy. 

In a world defined by uncertainty, countries start to place a premium on stability. 

And increasingly, governments are responding by thinking more in terms of sovereignty and resilience. 

 They are asking new questions about how their economies function. 

 Questions like: 

Do we have secure supply chains? 

Do we have access to food, critical minerals and energy? 

Do we have the infrastructure and electricity needed to support our economies? 

Do we have the capacity — economic capacity, technological capacity, and institutional capacity — to navigate an unpredictable world? 

 In response, governments around the world are trying to strengthen their domestic economic foundations. 

 They are investing in infrastructure. 

 They are prioritizing energy security. 

 They are trying to build domestic capacity in key industries. 

 In short, we are entering what you might call the era of the resilience agenda. 

This agenda is not just about growth or efficiency. In fact, building resilience may actually mean sacrificing efficiency and growth. 

Resilience is about ensuring that our economies can withstand shocks and disruptions. 

 It’s about reducing vulnerabilities. 

Which brings me back to rural Canada. 

Because when you look at the sectors that will matter most in a more resilient and self-reliant economy — natural resources, agriculture, energy, food production, critical minerals, and renewable energy — many of them are rooted in rural and remote regions of the country. 

Most of the resources that make Canada a valued trading partner to our allies originate in rural areas. 

Much of our food production comes from rural communities. 

The same is true of many of the renewable energy projects that will be central to the energy transition. 

We already know rural regions punch well above their weight economically. 

They account for roughly thirty percent of Canada’s GDP and an even larger share of the country’s exports, with a fraction of the population. 

In other words, these regions are already central to Canada’s economic security and prosperity. And will increasingly become more central in the years to come. 

And this is where the story of rural Canada intersects directly with the story of First Nations economic development. 

Many of the regions that will matter most to Canada’s economic future — regions rich in agriculture, energy resources, critical minerals, forestry assets, and renewable energy potential — are also places where First Nations are rights-holders, land stewards, and increasingly economic partners. 

Across the country, we are seeing the emergence of a new model of economic partnership based on Indigenous ownership and equity participation in major projects. 

For a long time, Indigenous communities were often asked to respond to development proposals designed by others. 

Increasingly, that model is changing. 

Today we are seeing First Nations become owners, investors, and partners in projects — from energy infrastructure to natural resource development. 

Indigenous equity participation is becoming one of the most important developments in Canada’s economic landscape.  Thankfully we are seeing more and more examples come forward in our energy, electricity and other natural resource sectors. 

The Business Council of Canada believes Indigenous ownership is a potential competitive advantage for the country — one that can help unlock investment while ensuring economic benefits are shared with the communities where projects are located. 

 In many cases, meaningful partnerships with Indigenous communities are now essential to the development of major infrastructure and energy projects.  When genuine partnerships are in place, we know our regulatory processes move faster. 

 And when those partnerships succeed, they create economic opportunities that extend far beyond a single project. 

And that brings me to an important point. 

If rural Canada and First Nations communities are going to play a larger role in the country’s economic future, we need to ensure that our policy frameworks supports these communities. 

 Right now, too often, rural regions remain undervalued in national policy discussions. 

 Rural Canadians — who make up about twenty percent of the population — continue to face greater barriers to accessing health services, public transit, affordable housing, and education. 

 In some cases, policy decisions can unintentionally make life more difficult in rural areas. 

 Energy and climate policies, for example, must always be designed with an awareness of how they affect communities whose economies depend heavily on resource sectors. 

 More broadly, we need to adopt a policy mindset that recognizes the importance of rural regions to the country’s overall economic security. 

 We need better infrastructure. 

 We need stronger transportation networks that connect rural regions to urban markets. 

 We need digital connectivity that allows businesses and workers to operate effectively in remote areas. 

 And we should strive to ensure that more of the wealth generated in these regions remains in the communities where it is created. 

Educating Canadians about the importance of rural communities should also be part of the conversation. 

 Too often, these regions are viewed through the lens of decline or nostalgia. 

 But as I’ve been arguing here, the reality of rural Canada is very different. 

 Rural communities are at the centre of many of the industries that will shape Canada’s future. It is in all our interests to see these communities prosper. Pause. 

 The good news is that we are not starting from zero. 

 Governments have taken some steps in the right direction. 

 Investments in broadband connectivity have improved digital access in many rural and remote areas. 

 And policy makers and business leaders are increasingly recognizing the importance of economic partnerships with Indigenous communities. 

 But much more work remains to be done. If we are going to succeed in this new era of change, the future will not be built in Ottawa or Toronto or Montreal. 

 It will be built in communities across the country — in rural regions, in resource regions, and in Indigenous communities that sit at the heart of many of Canada’s economic opportunities. 

 The world is becoming more uncertain, more competitive, and more fragmented. 

 Countries everywhere are responding by strengthening their economic foundations. 

 Canada will do the same. 

 And if we get the policy framework right — if we invest in capacity, infrastructure, and partnerships — the opportunities ahead could be significant. 

 Not only for Canada as a whole. 

 But for the communities represented in this room. 

 Because the next chapter of Canada’s economic story will not simply involve First Nations as stakeholders. 

 It will increasingly involve First Nations as partners, investors, and builders of the country’s economic future. 

 Thank you very much.