OPINION: Canada needs a real trade strategy
· Toronto Sun
Donald Trump’s announcement on Tuesday should be a wake-up call for Ottawa.
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The U.S. President did not announce a blanket ban on every Canadian business selling in the United States. He said Canadian-origin products could be removed from U.S. federal procurement schedules unless Canada restores what he calls “full and fair reciprocity” for American companies.
That puts Canadian manufacturers, suppliers, exporters and the workers they employ at real risk.
People can disagree with Trump’s tactics, but we have to recognize what he is doing. He is using access to the U.S. market as leverage. He has shown he is prepared to negotiate, but negotiations require a serious Canadian response, clear proposals and leadership that is willing to defend our interests while keeping Canadians informed.
Instead, Canadians are being asked to trust Mark Carney while running blind. His government says Washington put unacceptable conditions on the table, but it has not given Canadians a meaningful account of what the U.S. demanded, what Canada offered, which terms were rejected or why negotiations collapsed. Parliament should be debating this.
Canadian manufacturers, exporters and small-business owners deserve to know what is at stake before policies are imposed that could threaten their markets, costs and survival.
The U.S. remains Canada’s largest trading partner
The U.S. is not simply another export destination. It remains Canada’s largest trading partner. In July, it accounted for 66.35% of Canadian exports. That same month, exports to the U.S. fell 6.6% and Canada’s merchandise-trade surplus with the U.S. narrowed from $10.3 billion to $5.9 billion.
At the same time, Carney is heading to Strasbourg, France to attend the European Union’s State of the Union address and speak before the European Parliament. Building stronger relationships with Europe makes sense, and Canada should diversify its trade wherever possible. But Europe cannot quickly replace the geographic advantage, integrated supply chains, customer relationships or sheer scale of the U.S. market for Canadian businesses.
The longer Ottawa allows this uncertainty to continue, the more damage it does to small and medium-sized Canadian businesses (SMEs).
SMEs are not a side issue. They account for about 47.2% of private-sector GDP and employ 63.6% of Canada’s private-sector workforce. They simply do not have the resources of multinational corporations to absorb lost orders, tariffs, financing pressures, disrupted supply chains and prolonged uncertainty.
If this uncertainty continues, the consequences won’t be hard to predict. Viable Canadian-owned businesses can be weakened, forced to close, or sold to larger domestic conglomerates or foreign buyers. That means less local ownership, fewer independent manufacturers and suppliers, and less control over Canada’s productive capacity.
Canada needs transparency, competence and a credible negotiating strategy. We don’t need vague messaging, stalled talks and political theatre.
Release the facts. Bring Parliament and affected industries into the discussion. Get back to a serious negotiating track with the U.S. And protect Canadian businesses, Canadian ownership and Canadian jobs before more damage is done.
– Scott Hughes is an Ontario Businessman and a board member of the Coalition of Concerned Manufacturers and Businesses of Canada