WASHINGTON — Federal Treasury Secretary Chrystia Freeland warns of the dangers of a global “race to the bottom” as government spending spurs growth in the new green economy.

Ms Freeland made the “polite reminder” on Wednesday during a speech hosted by the Peterson Institute for International Economics in Washington.

She first praised the Biden administration and its “transformative” Anti-Inflation Act, a climate spending package she says will change the world for the better.

However, she added that there is a risk that all this spending will lead to lower corporate tax rates, which would weaken national tax revenues, which is essential for the health of the middle class.

Ms. Freeland also urged her Washington audience to see free and fair trade as an engine of growth, provided that a level playing field is a level playing field and the working class is not excluded.

The finance minister and deputy prime minister of Canada is in the American capital for the annual meetings of the World Bank and the International Monetary Fund.

“A corporate subsidy war could benefit some shareholders, but it would drain our treasuries and weaken the social safety nets that underpin effective democracies,” Ms Freeland said.

“It is in our mutual interest to work together as friends, partners and allies to ensure our incentives drive innovation and investment, rather than creating a vicious spiral.”

WASHINGTON — Federal Treasury Secretary Chrystia Freeland warns of the dangers of a global “race to the bottom” as government spending spurs growth in the new green economy.

Ms Freeland made the “polite reminder” on Wednesday during a speech hosted by the Peterson Institute for International Economics in Washington.

She first praised the Biden administration and its “transformative” Anti-Inflation Act, a climate spending package she says will change the world for the better.

However, she added that there is a risk that all this spending will lead to lower corporate tax rates, which would weaken national tax revenues, which is essential for the health of the middle class.

Ms. Freeland also urged her Washington audience to see free and fair trade as an engine of growth, provided that a level playing field is a level playing field and the working class is not excluded.

The finance minister and deputy prime minister of Canada is in the American capital for the annual meetings of the World Bank and the International Monetary Fund.

“A corporate subsidy war could benefit some shareholders, but it would drain our treasuries and weaken the social safety nets that underpin effective democracies,” Ms Freeland said.

“It is in our mutual interest to work together as friends, partners and allies to ensure our incentives drive innovation and investment, rather than creating a vicious spiral.”