I’ve been to the United States several times in the last few months, but American officials haven’t seen us through rosy glasses in Canada. Figuratively speaking, they are looking at us through old disposable paperboard and plastic 3D glasses with one red (Republican) lens and one blue (Democratic) lens.
Little has been seen by the Republicans and Democrats these days, so you need to be careful when a bipartisan consensus is emerging about Canada. When US officials look at Canada through both red and blue lenses, three “Ds” pop out: dairy imports, digital taxes, and defense spending.
These three “Ds” pose a special risk to the relationship between Canada and the United States. In either case, the White House and Congress believe that Canada is not keeping our promises. Whatever our own understanding of Canada’s policies in these areas, it seems to Americans to return to our words.
Regarding dairy products that came out when Prime Minister Justin Trudeau met with Chairman Nancy Pelosi at the Summit of the Americas, the United States claimed that Canadian regulations violated the promises of Canada and the United States in the second round. Requested dispute resolution consultation. State-Mexico Agreement (CUSMA).
The same is true for Canada’s digital service tax issues. U.S. Trade Representative Katherine Tai said Canada’s plan for a one-sided digital service tax could violate CUSMA and that Canada, the United States, and 135 other countries would implement a global minimum corporate tax. We believe it could undermine historical initiatives.
The OECD is now publicly confirming that these negotiations are taking longer than planned. This means that the resulting global tax implementation is at least a year behind. Canada does not intend to blame this, but the fact that we are still planning to advance our taxes only ranks more people in the United States.
But stimulants go beyond trade and taxation. The increase in defense spending in the federal budget in April is welcome, but U.S. officials continue to have not yet reached NATO’s pledge that Canada will invest 2% of GDP. I am paying attention.US Ambassador to the United States David Cohen Publicly Recent PBO report He says he won’t do that for the next five years.
Taken together, these issues can have serious consequences for our future economic security. When NAFTA evolved into CUSMA, it acquired a new feature (review clause) that would allow the United States to break out of the agreement in 2026. The risk that cannot be ignored is too great because we do not know who will participate in the White House.
In addition, these issues make it difficult to challenge unique US policies such as potential tax credits for electric vehicles (EVs), “by America” procurement clauses, and tariffs on softwood. Canadian and American livelihoods. We continue to hit the same three walls.
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We need to change Washington’s perceptions of each of these three “D” issues and rebuild trust. It does not mean to buckle under pressure when we need to claim sovereignty, but to keep our commitment and bring our unparalleled borders to our American allies. It reminds us that there are three or more aspects to a partnership that transcends.
The best time and place to start is the CUSMA Free Trade Commission meeting in Vancouver. FTC will bring together Canadian, US and Mexican ministers to assess how the agreement works and see how it works. This is an important milestone on the road to the 2026 review.
The FTC meeting will be the second visit to Canada by USTR Ambassador Thailand in just over two months. Canada needs to welcome her with new suggestions on how to deal with one or more of the ongoing 3D amputations. If she reports to Washington that Canada has made a sincere attempt, it will help alleviate the dangerous situation.
But if Canada is seen as ignoring US concerns, it could be seized by those trying to arouse the sentiment of protected tradeism in the November US midterm elections. Canada’s last need is for the next parliament to consist of senators and representatives who have successfully campaigned against free trade on the continent.
To be clear, for Canada, CUSMA is teeth Although it was successful saw As a success in the United States. To that end, it is clear that for the sake of Canada’s national interest, we are considered a resilient and credible partner that respects its commitment. It’s the image we want to pop out when Americans see us.
Goldy Hyder is President and CEO of the Canadian Business Council.