CALGARY, Nov. 28, 2016 /CNW/ - Canada suffers in the eyes of investors for being a relatively small market, distant from large export destinations, with a cold climate and geographic vastness that raise the cost of doing business here. Canada has been able to overcome its disadvantages in recent years by being highly competitive on business taxes. Unfortunately, the tendency of Canadian provincial and federal governments of late to raise taxes has been rapidly erasing that slight advantage. Dangerously, Canada is quickly losing its competitive edge, according to a new report by co-authors Phil Bazel and Jack Mintz. "Some major economies with whom Canada directly competes for investment have recognized the need to make themselves more attractive to investors. Denmark, Japan, France, Portugal, Switzerland and the U.K. have all taken steps to reduce their corporate tax load. As a result of their cuts, and because of Canadian policy changes that have increase the marginal effective tax rate (METR) on business here, Canada has moved from having the 16th-highest burden on capital in the OECD (which was middle of the pack) to having the 13th highest. In the G7, Canada had the lowest METR - we are now sixth highest," said Jack Mintz, President's Fellow at The School of Public Policy.