It might be wishful thinking, but Canadian Finance Minister Mark Carney has expressed interest in reducing increasing trade frictions. He recently voiced his enthusiasm for forging new economic relationships with the United States. Those were his comments, made on the fly during a recent trip to Mexico. During that visit, he signed an economic partnership agreement among member states to further secure North American partnerships. Carney thinks that more modest sectoral agreements might be enough to bring down the temperature in the current trade war between Canada and the U.S. Canadian officials have been very vocal in their condemnation of this conflict.
During his successful election campaign last spring, Carney routinely rallied the troops with the battle cry “elbows up.” For Turner, this expression captures the need to approach negotiations from an assertive position. Together with comedian Mike Myers, he produced this video. This video features that expression and hopes to inspire more of that spirit to continue fueling the fight for smart, equitable trade reform.
“We have the ambition, but a deal is a deal, and a deal has to go for both sides, and Canada will agree to a deal that’s in the best interest of Canadians,” Carney stated, emphasizing his commitment to equitable agreements. In fact, he argued vehemently that, in spite of the derogatory letter references, Canada has the U.S.’s best trade agreements. U.S. Ambassador to the Netherlands Pete Hoekstra reinforced this message.
Hoekstra has not been shy about his disappointment with the prevailing narrative on Canada-U.S. relations. He slammed Canadian politicians and media for adopting the narrative that Canada and the U.S. are engaged in a trade war. Then to have a cabinet minister come out and say it’s a trade war with the United States. We’re at war with the United States. I believe that’s a very perilous path to pursue,” Hoekstra said at a recent event.
The ambassador further lamented the lack of enthusiasm among Canadians for their relationship with the U.S., saying, “I’m disappointed that I came to Canada, a Canada that (where) it is very, very difficult to find Canadians who are passionate about the American-Canadian relationship.” He said he believed this sentiment was due in part to Carney’s anti-American campaign rhetoric, which he termed “disappointing.”
François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, recently added his two cents to the controversy as well. He accused the U.S. of turning its back on Canada by initiating a trade war, stating, “It is sad, I would say, that our largest trading partner turned its back on Canada, which has led to us having to reassess how we’re going to build the economy of the future.” He laid out the case in stark terms that Canada needs to “reinvent” its national economy to meet these challenges.
Champagne pointed to the financial costs of the burgeoning trade war. He noted that “a lot of the costs” in the upcoming federal budget are “directly related to the trade war that has been imposed on Canada.” This recognition further reflects the considerable economic pressure and uncertainty being experienced by Canadian businesses and consumers.
As talks drag on, Carney and his team still hope to secure fresh arrangements, particularly with U.S. President Joe Biden’s administration. Though those consultations remain ongoing, we’re busy on our side of the Atlantic pursuing bilateral discussions with the United States. Look for more progress as we go along,” Carney went on.
As the countries of Canada, the United States, and Mexico prepare to go through an extensive re-evaluation of the united trilateral Canada-United States-Mexico Agreement (CUSMA), this historic convocation is scheduled to happen next year. The result of these negotiations could have a tremendous impact on trade flows in North America.
Though tensions persist, Hoekstra is optimistic about the future of bilateral relations. He continued, “That’s helpful. That’s really helpful to take some of the tone and tenor out of the debate.” This shows that mutually beneficial, constructive dialogue can really help thaw relations.
