Biz owners must keep calm and carry on: Doer

Hey there, time traveller!
This article was published 06/11/2024 (328 days ago), so information in it may no longer be current.

Canadian business owners need to remember not all economic decisions are made in Washington, D.C., as they prepare for a second Donald Trump presidency, says former Manitoba premier Gary Doer.

Doer, who led the province from 1999 to 2009 before serving as Canadian ambassador to the United States (2009-16), delivered the message to more than 250 people at a Winnipeg Chamber of Commerce event Wednesday.

“I think we shouldn’t underestimate the importance of (state) governors in this economic relationship,” he said.

“Governors are very close to businesses and labour and citizens and consumers in their states. A lot of attention is paid to Washington, but a lot of decisions are actually not made in Washington … We should be very aware of that.”

Trump, who served as the 45th U.S. president (2016-20) and recently ran on a platform that promised protectionist trade policies, won a second, non-consecutive term in the wake of Tuesday’s election. He is scheduled to be inaugurated Jan. 20.

Hosted by chamber president and CEO Loren Remillard, the Winnipeg event explored how Trump’s presidency could affect Canada and the potential challenges for businesses at the local and national levels.

When Remillard asked which congressional- and state-level races Doer was watching closely Tuesday night, specifically as they relate to Manitoba’s strategic interests, Doer responded he always pays attention to North Dakota and Minnesota — the two states that border the keystone province.

“They’re some of our biggest customers (and) we’re some of their biggest customers.”

Doer said he is not overly concerned by the prospect of Republicans controlling all three branches of the U.S. federal government. At the end of the day, elected officials are beholden to their constituents.

“If the house is Republican and they’re perceived to be not representing the folks that sent them there, they’ll be defeated in two years,” he said, referring to the U.S. mid-term elections. “If you don’t deliver, there’s a day of reckoning called the ballot box.”

“Governors are very close to businesses and labour and citizens and consumers in their states. A lot of attention is paid to Washington, but a lot of decisions are actually not made in Washington … We should be very aware of that.”–Gary Doer

Asked about the minimum 10 per cent tariff on all U.S. imports and the 60 per cent tariff on Chinese-made products Trump touted during his campaign, the former NDP premier said the proposal is “good politics but not good economics,” since tariffs will affect the inflation rate in the United States.

“It’s one thing to talk about China and the state-owned enterprises in Mexico, but it’s another thing to create such a situation where inflation is hurting individual people and individual companies,” Doer said. “It will go from good politics to bad economics to bad politics.”

Winnipeg Free Press | Newsletter

Business Weekly

Monday Mornings

The latest local business news and a lookahead to the coming week.

Sign up for Business Weekly

Sign Up

I agree to the Terms and Conditions, Cookie and Privacy Policies, and CASL agreement.

Remillard noted during his first presidential term, Trump was critical of Canada’s defence spending. Canada currently spends around 1.4 per cent of its GDP on defence. It has promised to increase that number to two per cent by 2032, which will meet its agreement with NATO.

“I wish we had done it earlier,” Doer said. “I think we’ve made a mistake by dithering on this.”

Canada has made good judgments during international conflicts in the past, he added, and the country is trusted as a result. It entered both the First World War and Second World War before the United States and did not go into Vietnam nor Iraq, Doer noted.

“If the house is Republican and they’re perceived to be not representing the folks that sent them there, they’ll be defeated in two years … If you don’t deliver, there’s a day of reckoning called the ballot box.”–Gary Doer

“One of the things that Canada brings to the table is our judgment. But we’ve also got to bring to the table our chequebook and we should do it for our sovereignty. People don’t want to do it because somebody else’s president tells you to do it. They want it. So I’m really worried that we’ve waited too long on (defence spending).”

Doer concluded the event by offering advice to the Canadian politicians who will work with Trump.

“Be reliable and predictable,” he said. “Relationships matter and I would worry that one politician would try to use the election in the United States as a potential wedge for getting votes in Canada. That’s not in the public interest of Canada.”

Following the event, Remillard told reporters the results of the U.S. election are a reminder government relations are critical to business success — especially cross-border and international.

It’s too soon to say if Winnipeg business owners should be concerned about a second Trump presidency, Remillard added.

“It’s a transition for anyone, whether you’re happy with the change or unhappy with the change,” he said. “Change is change. So let’s study it. Let’s better understand where potentially we can make some gains.”

The most important thing right now, he added, is Canada maintains its trade relationship with the United States.

“One of the things that Canada brings to the table is our judgment. But we’ve also got to bring to the table our chequebook.”–Gary Doer

“For a long period of time, we were in a period of globalization, where countries were working to liberalize trade (and) open borders and now it seems the pendulum is swinging more to isolationism,” Remillard said.

“Canada’s economy is not large enough to sustain our own interests in an isolation-era economy. So we need to make sure we are tied in to our biggest partner and the world’s largest economy — and that’s the United States.”

aaron.epp@freepress.mb.ca

Aaron Epp
Reporter

Aaron Epp reports on business for the Free Press. After freelancing for the paper for a decade, he joined the staff full-time in 2024. He was previously the associate editor at Canadian Mennonite. Read more about Aaron.