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Trudeau’s commercial chief rejects the Nafta challenge at Keystone XL
(Bloomberg) – Prime Minister Justin Trudeau is rejecting calls for a more combative response to U.S. protectionism, in the hope that a conciliatory approach will repair damaged relationships during Donald Trump’s presidency. Commerce Minister Mary Ng said in an interview this week that she is focusing her efforts with the new Biden administration on the mutual interests of the US and Canada, despite the first political hiccups that are in danger of further breaking ties between the two nations, whose trade relationship is worth $ 725 billion a year. a move that has led the oil-rich Alberta leader to threaten a challenge under North America’s old free trade pact. Tensions increased when the new government enforced “Buy Americans” provisions for government procurement contracts. “I don’t think entering a trade war with the United States is in the interest of Canadian workers or the energy sector,” said Ng on Wednesday. “What we have to do is find that common ground where Canadian interests are seen and seen as American interests as well.” The trade minister’s comments highlight Trudeau’s decision to get around conflict points with Biden and instead channel energy towards goals such as fighting climate change and promoting an economic recovery. Integrated economies Trudeau employees welcomed Biden’s arrival at the White House after the Trump era, which has affected years of relative stability with Canada’s largest trading partner. The two countries exchanged nearly $ 2 billion in goods and services every day in 2019. The economies are so integrated that the average North American car crosses the U.S.-Canada border seven times before being sold, Ng said. Biden’s “Buy in America” rules are designed to boost the US economy by putting pressure on federal agencies to seek goods and services. home business. The government spends about $ 600 billion annually on such contracts. “Canadian contributions – our business contributions, our exporter contributions – to these supply chains and value chains are absolutely important to American workers and companies,” said Ng when pressed about how the government will react against the president’s plan. A key part of Trudeau’s strategy is to convince the president that protectionism will hurt American companies that depend on Canadian products. “The important thing here is the result,” said Ng. “The result is that Canadian companies and workers are not affected and we continue to have access to that market, that our supply chains are not interrupted.” The two countries are also divided on how to supply energy to North America’s green sectors for energy transition. Trudeau tried unsuccessfully to convince the new administration that Canadian oil is a cleaner option due to his government’s carbon tax and strict environmental regulations. Key Energy XL by TC Energy Corp. it would send more than 800,000 barrels of oil a day from Alberta sands to US refineries. Premier Jason Kenney, who poured C $ 1.5 billion ($ 1.2 billion) of taxpayer money into the project, asked Trudeau to impose trade sanctions in response to Biden’s decision. Biden’s decision, however, is part of a major overhaul of perceptions in Washington around the energy relationship with Canada. For decades, energy security has been viewed as a continental affair, with Canadian oil producers enjoying market access while the United States has gained security of supply. But the boom in shale oil production in recent years has made Canadian energy expendable. This will be a major problem for a country that relies heavily on oil exports to the US for its prosperity. Canada has sent C $ 838 billion in oil and gas to the United States in the past decade, representing 16% of total exports to all countries. Trudeau’s government is playing with new trade strategies that focus less on selling commodities and more on exploring the global market for other goods, especially consumer-related ones. The opportunities provided by electronic commerce – mainly for smaller companies – is an area that the authorities like to highlight. Renamed Ministry It is an emphasis for Trudeau that became explicit in 2019 when the Prime Minister – in appointing Ng to the post – renamed the post of Minister for Small Business, Export Promotion and International Trade. The focus on “small” was not lost by Ng, a Hong Kong immigrant who moved to Toronto with her parents at the age of seven. In the interview, she highlighted how she spent her childhood working at her parents’ restaurant and keeps a photo of the menu in her office. Not even the pandemic has diminished its efforts to promote the country’s exporters: Ng has made virtual trade missions fundamental for it to work. “I am not going to let Covid-19 stop me from helping companies do business,” she said. But there is no denying that Covid hit the country’s commercial sector hard. Exports fell 12% in 2020, Ng’s first year in employment, one of the biggest annual falls in the past century. The other potential remedy for Canada’s export problems is China, but relations with the Asian giant soured sharply after the 2018 arrest of a top Huawei Technologies Co. executive in a U.S. extradition request. China subsequently arrested two Canadians and suspended billions in agricultural imports. “I don’t believe there are conditions right now for trade discussions,” said Ng when asked about China. “The government’s priority is to work to secure the launch of Michael Kovrig and Michael Spavor.” For more articles like this, visit us at bloomberg.comSubscribe now to stay up to date with the most trusted source of business news. © 2021 Bloomberg LP