What’s driving Canada’s progressive trade agenda?
We examine Canada’s relation with the US and its desire to explore new partnerships in the Middle East and Asia.
Canada and the United States share the world’s longest international border.
Trade is central to the two countries’ relationship as jobs depend on the easy flow of goods and services. With over 400,000 people flowing across the border on a daily basis, the two-way trade is worth $2.4bn daily.
However, trade rules between two of the world’s largest trading partners are about to change as the US seeks to “tweak” the North American Free Trade Agreement (NAFTA), the decades-old free trade deal between the US, Canada and Mexico which aims to cut tariffs and ease commerce.
Francios-Philippe Champagne, Canada’s minister of international trade, discusses his country’s relationship with its neighbours and integration with the rest of the world.
The value of Canada’s trade worldwide is equivalent to 65 percent of its GDP, but the US buys three-quarters of Canada’s exports – making it Canada’s biggest export market.
“Canada’s the largest energy supplier to the US – whether it is oil, gas, or electricity – so we will remain good strategic partners and I think there is a recognition in the US about that,” said Champagne.
“We like to be good energy partners because energy security is key to North America. Canada has huge natural resources so we’re pleased to continue that relationship with the United States.”
Meanwhile, Canada is pursuing a progressive global trade agenda. It is hoping to boost trade with the European Union by up to 20 percent under the Canada-Europe trade pact known as CETA – although it has yet to be fully ratified.
“This is the most progressive trade agreement negotiated by either Canada or the EU.
“It includes provisions about the environment, labour standards, and the right of states to legislate in the interest of health and safety. So, this progressive trade agreement is the gold standard in the world.”
Additionally, Champagne’s aim is to establish new partnerships with fast-growing markets in Asia such as China, India, Japan as well as the Middle East.
He said feasibility studies are under way to assess the possibility of preferential trade agreements because “we owe it to Canadian consumers and workers to develop access to these markets”.
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