No ‘down payment’ on USMCA. Here’s what to offer instead
Canada should reject any U.S. demand for a “down payment” to begin USMCA renewal talks, writes CD Howe Institute senior vice-president Daniel Schwanen. Simply saying no is not a negotiating strategy, however and the government should present a framework that links a stronger Canadian economy to improved U.S. trade outcomes. Canada is already a major customer for American goods and a key supplier of strategic inputs, he writes. Canada should focus on reducing incentives for trade escalation and strengthening North American competitiveness against China, he says. "The real win is predictability for North American workers, businesses and consumers – and the space for Canada to rebuild its own economic dynamism," he writes.
