Prime Minister Stephen Harper called on the G20 to keep providing stimulus to the global economy, while also moving ahead with regulatory reform in the financial sector.

Speaking to a meeting of so-called “sherpas” of the G20 ahead of the group’s next planned leaders’ meeting in Toronto in June, Harper said that the countries of the G20 must continue to work together to ensure economic recovery.

“Though it is natural and expected that we all will defend our national interest, that national interest must be ‘enlightened.’ It must take into account the overall, long-term needs of the entire global economy if that global economy is to prosper,” he said. “We can’t lose sight of what remains our biggest collective challenge. The recovery is by no means fully assured. Too many citizens, in all of our countries, are still feeling the recession’s impacts.”

To that end, Harper said the G20 must continue to provide economic stimulus, although it must also be thinking about how to withdraw that stimulus, and move to a global economy that is more balanced and sustainable.

Additionally, “we must strengthen regulatory systems for the financial sector,” he said. “These reforms have already been agreed. However, they will not be effective unless we put them in place. This has become a matter of urgency. We must get this done within the agreed timeframe.”

He also called for continued reforms at international institutions, including multilateral development banks; and for the G20 to avoid protectionism.

“Canada has recently negotiated a number of bilateral trade and investment agreements. Furthermore, our 2010 federal budget eliminated all remaining tariffs on manufacturing inputs and machinery and equipment. This will make Canada a tariff-free zone for manufacturers. I would like to encourage your governments to consider concrete actions that they can take — perhaps that we can all take — to open global markets and keep them open,” he said.

IE