**Former Prime Minister Jean Chrétien pictured at the recent Liberal Party leadership convention. / CBC SCREENSHOT**

Canada is in a good position to assert itself in a world where the U.S. appears to be losing its dominance, and Prime Minister Mark Carney is poised to make a valuable contribution during this weekend’s G7 summit, according to former Prime Minister Jean Chrétien.

President Donald Trump has created a “big problem” globally because he’s disturbing a system that has been in place since the Second World War, Chrétien, 91, said in an interview with Amanda Lang on the Public Policy Forum’s Wonk podcast, released Thursday. “It’s a big, big change. It's a kind of a revolution he’s causing, and the democracies are getting weaker, and they're losing. You know, what I like to say is that it’s the beginning of the end of the American empire.”

While Trump often speaks about trade deficits, he never mentions the many non-trade advantages the U.S. has enjoyed because of the greenback’s position as the main global reserve currency, said Chrétien. “And he might destroy that.”

Prime Minister Mark Carney, an expert in the field of global finance, can “make a very good contribution” to discussions at the G7 this weekend, where the presence of leaders from countries such as India may take the focus off the U.S., Chrétien said.

A ‘big wall’

Canada should seek to strengthen relationships with other leaders, establishing economic ties with countries whose domestic policies we may not agree with. “Foreign politics is not to please the audience in Canada, it’s to establish good relations with the people we visit,” he said. “We might be in disagreement… But I don't think that, because I speak, they would change the system.”

Though Chrétien thinks Canada is “more united” than ever because of Trump, “there will always be problems.” When it comes to improving internal strife and overcoming challenges caused by external actors, Canada will “have to adjust,” as it always has. “We always feel that we have a big wall in front of us,” Chrétien said. “Now we have to wait and find a way either to go through the wall, or above the wall or under the wall, on the side of the wall, but we have to get up and move. And we do that.”

On the question of western separatism, Chrétien said Albertan separatists should reconsider the limitations and demands of independence. Not only would there be issues regarding indigenous rights, the national deficit, international obligations and defense — building pipelines out of a landlocked country across Canada would be difficult. Alberta would have even “less autonomy” as an American state, where energy is controlled federally. Chrétien believes Alberta Premier Danielle Smith would eventually “regret” creating a separatist party, as it could split the Conservative vote and hand power to her opponents.

Even in the face of political tensions and economic uncertainties, Chrétien believes Canada is not “a country in huge difficulty.” He pointed to the national deficit, which at 2% of GDP, is the lowest per capita in the G7 and the determination of Carney, which he appreciates. “He's decisive, something apparently I was,” said Chrétien. “I'm happy with him so far.”