Canada Must Prioritize Its Own Interests in Trade Talks with US
Mark Carney's aggressive stance in trade negotiations has appealed to Canadians' patriotism and anti-Americanism, but has also masked Canada's own economic policy failures since 2015. The country's GDP per capita is now 38% lower than that of the United States.
The Canadian government needs to focus on its vital interests in a relationship with the US that is 'geographically inseparable' and deeply integrated. Trade uncertainty and tariffs have worsened Canada's economic outlook, affecting small and medium-sized businesses that account for 64% of private-sector employment.
Canada has benefited from trade with the US, but the current negotiations present serious economic risks. Changes to CUSMA's automotive rules of origin or incentives could lead to permanent loss of Canadian production, while President Trump's tariffs have already reduced Canadian steel exports by half, according to the Bank of Canada.