Mark Carney, the Prime Minister of Canada, has initiated a series of international trips to bolster Canada’s trade relationships and export opportunities. His surprise recent trip to the United Arab Emirates (UAE) is a seismic shift. It’s an important part of his strategic plan to double Canada’s non-US exports over the next ten years. Carney’s new diplomatic efforts begin a period in which Canada will continue to experience heightened tensions with the United States over trade policies.
While in Abu Dhabi, Carney met with UAE Crown Prince Sheikh Mohamed bin Zayed Al Nahyan. During their meeting, they discussed ways to strengthen bilateral trade relations. Carney is kicking off a larger effort to more closely work with worldwide partners. This meeting will focus on opening up new markets for Canadian goods and services. More generally, Carney is passionate about diversifying trade relationships. This strategy aids in reducing both the costs and dangers of being overly dependent on the US market.
In conjunction with his global outreach, Carney is contemplating a trip to Washington next week for the FIFA World Cup draw. This potential visit reflects his intent to maintain a presence in the US while navigating the complexities of trade negotiations. In addition, he’s facing criticism on all sides. Many think he is not doing enough or moving fast enough in reacting to the fear of 12th round of talks with the US.
In my previous post, critics have lamented that Canada’s pushing on trade fronts have not gone as quickly as hoped. The Opposition Conservatives have expressed concern over Carney’s seeming disregard for impacts of US tariffs on jobs. They are calling his attitude a slap in the face to the very serious challenges that Canadian workers are facing.
“dismissed and derided thousands of job losses as none of his concern” – Opposition Conservatives
Though these criticisms remain, Carney is hopeful in spite of what’s playing out in Canada about the country’s future in the global trade arena. He noted that Canada benefits from tariffs that are lower than most other countries. This is due in part to exemptions negotiated under current free trade agreements. This advantage allows Canada to strategically position itself while negotiating with its southern neighbor.
On several occasions Carney has indicated that he expects his government to intervene. Together, they will offer economic relief to industries harmed by US tariffs. As potential job losses are important to consider, he does not consider them a near-term crisis, he said.
“Who cares? It’s a detail. I’ll speak to him again when it matters.” – Mark Carney
Carney certainly hasn’t given anyone the impression that there’s a big, burning need prompting him to start calling US president Donald Trump any day now. He made this point very forcefully. He explained that ongoing dialogues between the two leaders have focused on potential agreements related to metals and energy, rather than pressing immediate concerns.
So it’s notable that the generally unflappable Carney got so heated on trade. He doesn’t want to look desperate, because he understands that with time comes opportunity for Canada. He echoed Richard Madan’s point about the political pressures that the US faces. These pressures are largely focused on affordability challenges exacerbated by tariff increases.
“They’re facing some political headwinds on affordability, and these tariffs aren’t helping” – Richard Madan
Jean Simard echoed this sentiment, stating that “time is on our side and pain is on their side,” suggesting that Canada may be in a favorable position if it continues to take its time with negotiations. Carney’s approach appears strategic, advocating for Canada’s interests while allowing the political situation in the US to evolve.
In Washington, Canadian officials are actively engaging with lawmakers on Capitol Hill, ensuring that Canada’s voice is heard amid the turbulent trade environment. As Chris Sands pointed out, that was a reflection of the mood in the private sector. Yet he signaled a profound hope for a breakthrough, acknowledging the challenging nature of arriving at any substantive accord.
“private sector says they want a deal. What can we do?” – Chris Sands