Friday, 7 February 2025

The Canadian Challenge


Trump's challenge to Canada has changed Canadians' attitudes about commerce with the USA.  Jokes about Canada becoming the 51st State are no longer funny to Canadians.  Amazon offers flags and other political promotional material about Canada being the 51st State, but Canadians are not buying.  Our international outlook may never be the same.

Our nation is currently engaged in a profound reevaluation of our relationship with the USA.  The shockwaves were palpable as Canadians grappled with the harsh and unfounded criticisms from the American President.  The initial remarks falsely claimed that we owe the USA and are subsidized by them, were a direct assault on the trade agreement established during the previous Trump administration, a deal that favoured the USA.

On November 30, 2018, Canada, the United States, and Mexico signed the updated Canada-United States-Mexico Agreement (CUSMA).  Investment decisions were then made based on those treaties.

President Kennedy said it best.  Concerning the USA, geography has made us neighbours.  History has made us friends.  Economics has made us partners.  And necessity has made us allies.  Unfortunately, the value of mutual respect has now evaporated. 

Canada has rescued the USA at many critical times and is also a partner in countless endeavours.  Sadly, Trump's statement about revoking his trade deal with us broke something profound.  The surprise reverberated worldwide, and the USA is no longer regarded as a stable, honest partner that abides by the agreements it signs.  Unilateral policy behaviour has its consequences. 

Despite the challenges and uncertainties we face, Canada remains resolute.  We will continue to negotiate, striving to prevent the worst-case scenarios.  We do not seek conflict, but rather cooperation for the betterment of all.  We stand as a sovereign and independent nation, not subservient to any.  The respect and dignity we extend to other countries should be reciprocated by our closest allies.

A 30-day suspension from 25% tariffs was obtained, postponing the international commercial disaster of a trade war.  Such a tragedy may still come, regardless of how honourable our response.  Because of the reprieve, the Prime Minister’s minions are claiming a big boost for him in the polls, but as of Feb.9, it was CPC 42%, LPC 26, NDP 16, BQ 8%, and GPC 4%. 

The Canadian government made big promises to change its behaviour concerning spending on border protection.  However, changing its truancy at the NATO table will be problematic.  The economy has been so poorly managed that Canada has no economic room to restore credibility to our military and fulfill our obligations under NATO, NORAD, vigilance for our northland, and UN Peacekeeping.

Canada needs better leadership to insulate its sovereignty against external forces. We must use wise alternative policies to stand up for ourselves.  Our geography remains, and the USA is not going away.  We will always be the United States’ northern neighbour.  We must wisely manage to insulate ourselves from external coercion and defend our sovereignty.

Our leaders have long championed the importance of trade diversity.  Now, more than ever, there is a renewed commitment to action, focusing on strengthening ties with the Commonwealth, particularly Australia, New Zealand, the European Union, Japan, and Mexico.  Canadians are also making conscious efforts to diversify their shopping habits, seeking alternatives to American goods. 

Nevertheless, nearly 50 percent feel that a Conservative government would be better positioned to deal with tariffs and the unpredictable President Trump.  The threats have been unifying for Canadians.  What is clear is that we will never become the 51st State.  It is unclear if we can fulfill our Constitutional promise that Canada is an internal free-trade zone for goods, capital, and labour.

The Canadian Constitution states that Canada is an economic union.  Under section 121 of the Constitution Act of 1867, goods from one province shall be freely admitted into any other.  However, the Supreme Court ruled differently in the Comeau case.  It stated that provincial free trade cannot impede provincial governments' regulatory actions.  This ruling, which prioritizes regulation and protectionist measures over free trade, disregards both the plain meaning and historical intent of section 121, and substitutes its own vision of the role of government.  It sets aside the words of section 121 as incompatible with the functions that the Court believes the State should serve.  This ruling has made Canada more vulnerable to US trade policy.  

Thankfully, Conservatives have a remedy plan.  

 

1 comment:

Anonymous said...

It is now beyond any discussion that NDP-Liberal policies have hurt Canada's long-term interests. As long as there are stupid, gullible people who buy into the narcissistic views of the left, Canada will be under threat. Canadians did it to themselves and made us vulnerable through short-term selfishness and meanspirited discrimination against Conservatives. The evidence clearly shows that Conservatives have been right about wise policy. Canadians have to stop supporting the nation's wreckers, the NDP-Liberals.