Canada’s Plan A: Anywhere but the U.S.
‘In Milwaukee at the G20, I met with Ambassador Jamieson Greer, U.S. Trade Representative, to discuss how we can collaborate together on the multilateral initiatives, be it pursuing WTO reforms or strengthening rules-based trade,’ International Trade Minister Maninder Sidhu wrote on social media. / TWITTER PHOTO
Canada used meetings with key trading partners this week to advance its trade diversification strategy as new U.S. restrictions on certain Canadian imports take effect and bilateral trade tensions remain high.
International Trade Minister Maninder Sidhu met with EU and Indian counterparts at a G20 trade ministers’ gathering in Milwaukee. “In a more unpredictable world, trade diversification is Canada's Plan A,” he told CBC News.
Sidhu said Canada's non-U.S. trade has increased by 17% over the past year, or $33 billion, with nearly one-third of Canadian exports now headed to destinations outside the U.S., the highest share in four decades.
The meetings came days after the U.S. imposed a new import ban on certain Canadian products, including most alcoholic beverages.
Sidhu also met with U.S. Trade Representative Jamieson Greer on trade uncertainty and the auto sector, saying workers on both sides of the border are feeling the impact. Greer said Washington remains open to a deal but is “not inclined to go to zero tariffs,” and that Canada-U.S. Trade Minister Dominic LeBlanc remains his main contact in talks that have continued since negotiations broke down.
The U.S. also pushed for WTO reforms, including to the Most-Favoured Nation principle, and raised forced labour in supply chains and excess steel capacity.
The developments come amid fresh criticism from President Donald Trump, who accused Canada this week of taking advantage of the U.S. but said a deal can still be reached within weeks. Prime Minister Mark Carney has said Canada remains prepared to negotiate “in good faith.”
Jobs and Families Minister Patty Hajdu said Tuesday Ottawa “is fighting for every single job in every single way,” pointing to counter-tariffs, business support and accelerated EI for workers hit by the import ban.
The trade dispute is also drawing attention on Parliament Hill, where Senate Opposition Leader Leo Housakos has given notice of a motion to strike a special committee on Canada-U.S. trade to examine its impacts on businesses, workers and communities.
Brussels Bound: Canada and the EU set to get a lot closer
Canada and the EU are expected to announce a sweeping new partnership later this month as both sides deepen ties amid the fallout from Trump’s trade war. A draft joint statement obtained by Politico says the agreement would expand cooperation on digital trade, energy, technology, climate, wildfire response and support for Ukraine, citing “unprecedented geopolitical challenges.”
The initiative is expected to be unveiled at an EU-Canada summit beginning Oct. 29 in Brussels, days after European Commission President Ursula von der Leyen proposed inviting Canada to become an associate member of the EU, prompting Trump to threaten additional tariffs on Europe if it moves forward.
