Canada Should Seek Grand Bargain with Trump, Not Narrow CUSMA Deal

Former Canadian trade minister Ed Fast is urging Canada to seek a 'grand bargain' with the United States, rather than focusing on a narrow renewal of the Canada-US-Mexico Agreement (CUSMA). The asymmetry in their economic partnership, he says, means that any tariff war would hurt Canada more.

Fast served as trade minister under Prime Minister Stephen Harper from 2011 to 2015. He argues that broadening the negotiation beyond CUSMA could provide opportunities for Canada to assert its interests and secure concessions from the US. The 'grand bargain' he envisions would cover areas such as trade, critical mineral supply, energy, and defence.

Fast notes that the US economy is 10 times larger than Canada's, giving it a significant advantage in any trade negotiations. Within the confines of CUSMA, he says, Canada has few bargaining chips. But by broadening the discussion to include assured supply of commodities critical to the US economy, such as nuclear uranium and critical minerals, Canada can gain leverage.

The potential Section 338 tariffs, which delegate authority to the US president, are also a concern for Fast. He warns that these tariffs have never been used before in this way and could exacerbate the current trade tensions. Fast believes that Canada should bring the US to the table with a compelling case for a broader continental bargain, one that includes assurance of supply, continental security issues, and defence spending.