Canada readies for trade with Trump

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This article was published 11/01/2017 (3221 days ago), so information in it may no longer be current.

Unlike his August “tune-up” to cabinet, Prime Minister Justin Trudeau’s cabinet shuffle Tuesday was a large one, affecting almost a third of his ministers. One of the casualties is Kildonan-St. Paul MP Maryann Mihychuk, who had her portfolio cut in half in the August shift and has now been dumped from cabinet altogether. This leaves Winnipeg South Centre MP Jim Carr as the lone Manitoba minister.

The decision to drop Ms. Mihychuk did not surprise many on the inside, who suggested she had trouble getting work done. Mr. Carr, by contrast, who has the Natural Resources portfolio, is viewed as a competent and capable minister.

For the Liberals, it’s all about getting ready for a new relationship with Canada’s largest trading partner, the United States, as president-elect Donald Trump is taking over next week.

The new minister in Foreign Affairs is Chrystia Freeland, who was formerly the International Trade minister and is considered one of Mr. Trudeau’s stars. Ms. Freeland takes over from Stéphane Dion, whose future is unclear. Sources suggest he turned down two ambassador posts.

This is a good strategic move by Mr. Trudeau. Ms. Freeland is a former economics journalist with impressive contacts in the U.S. She helped negotiate a trade deal with European leaders in October, while they were still reeling from the Brexit vote.

Ms. Freeland is a welcome contrast to Mr. Dion, who was seen as too combative at times and who struggled in his role. Ms. Freeland told the Hill Times at the beginning of the new year she felt the Trump administration and her government may have more in common on trade and the economy, despite the inflammatory rhetoric to the contrary.

Ms. Freeland’s competence in getting an EU trade deal could help Canada as it faces the uncertainty of a Trump presidency, particularly with his announced intent to tear up NAFTA, which is now more than 20 years old. Canada’s openness to trade deals while other countries are shutting down borders could play to an advantage, particularly as the markets move to Japan, China and other Asian countries, including ASEAN, the Association of Southeast Asian Nations.

As well, the opportunity to revisit NAFTA with an eye toward Canada’s interests in services and data would mean an opportunity to rewrite what has become a somewhat outdated document to modernize it for the new business reality. That’s not a bad thing, but the difficulty may be in trying to negotiate with what many see as an unstable personality in Trump.

Luckily, Ms. Freeland will find help. According to Foreign Policy, former Conservative prime minister Brian Mulroney, who is a neighbour of Mr. Trump’s in Palm Beach, has been recruited by Mr. Trudeau to help sell Canada. As well, Mr. Trudeau’s principal secretary, Gerald Butts, his chief of staff, Katie Telford, and Canada’s U.S. Ambassador David MacNaughton have met with Steve Bannon, former Breitbart boss and incoming White House strategist, and Jared Kushner, Mr. Trump’s soon-to-be senior adviser and also his son-in-law, in what some are calling a charm offensive.

There are many who suggest Mr. Trump’s attempts to shut down free trade between the United States, Canada and Mexico could hurt rather than help the American economy, translating into higher prices for U.S. consumers without saving any jobs.

However, Canada won’t want to risk upsetting a bilateral partnership worth $2 billion a day in trade.