Canada's Economic Woes Not Trump's Doing: Time to Fix Domestic Issues

Canada's economic position isn't set at negotiating tables in D.C. but rather by its own domestic policies, particularly over the past 30 years.

Ottawa has a long to-do list of 'nationally important projects' that demonstrates its understanding of the problem, yet highlights how far it is from achieving its goal of building a strong Canada at home.

A recent study by the Peterson Institute found that American tariffs would leave Canada's economy roughly half a percentage point smaller than it otherwise would be. In contrast, clearing internal regulatory and trade barriers in Canada would increase its economy by nearly seven per cent.

The Trump administration could see that Canada's economic alternatives were limited, which is why it felt comfortable pushing for more concessions during negotiations. This is evident in the decision of Nutrien, a Saskatoon company mining Saskatchewan rock, to build an export terminal in Washington instead of Vancouver due to faster approval timelines.

The current system allows provinces to set their own rules, creating interprovincial barriers that cost Canada around 21 per cent on goods and services crossing provincial lines, seven times the tariff-equivalent cost in the United States.