A Wall Street Journal profile of Prime Minister Mark Carney this week portrayed him as a leader steering Europe away from the U.S., drawing cinematic comparisons to a Bond-like hero facing a villainous Donald Trump. The article described western leaders meeting secretly in a Belgian castle to reduce dependency on America, dropping cellphones into signal-blocking cases. But while many Canadians cheer Carney's resistance, the timing is unfortunate as Canada is embroiled in existential trade talks under the CUSMA review.
Trade official warns of backlash
A senior Canadian trade official involved in the CUSMA review said the Journal article is likely to be received badly in the White House. “Even Trump’s detractors are saying to me: ‘It’s one thing to stand up to him. It is quite another to lead the resistance when he is your biggest customer,’” the official said.
Manufacturers moving production south
A KPMG report released this week found that four in 10 Canadian manufacturers have moved production to the United States, or are considering doing so, due to trade uncertainty and competitive pressures. The survey of 275 manufacturers also indicated that 57 per cent have paused, reduced or cancelled capital expenditure plans.
Conservative critic for Canada-U.S. relations Shuv Majumdar said the survey results reflect the cost of the Carney government’s “wait and see” approach to trade negotiations. The Canadian trade official noted that the issue is raised anecdotally in consultations “all the time.” “Many have already moved distribution south. Now, they are saying this has not alleviated the impact sufficiently and the risk remains high,” she said.
Carney's balancing act
Carney has proven remarkably nimble at walking the line between submission and overt confrontation. But signs suggest the government’s holding pattern on trade negotiations with Washington is becoming untenable. The KPMG data underscores mounting casualties among Canadian businesses as the trade standoff continues.
