Canada has no choice but to fight back the recent protectionist policies of Donald Trump and his bouncer, Wilbur Ross.
Both men have achieved business success by being bullies. We all know about Donald Trump’s behaviour.
Wilbur Ross made his fortune by buying bankrupt US domestic steel companies and encouraging the president at that time, George H. Bush, to impose massive steel import tariffs directed at Chinese steel companies. One year later US domestic steel prices rose 20% and Ross sold his company two years later for $3.5 billion. You talk about a conflict of interest!
The more the US plays hardball in terms of trade the more other countries will be encouraged to seek global trading partners.
Ultimately the US will not benefit from its protectionist policies. The end result is higher domestic prices combined with a loss of US jobs as international countries including Canada strike separate international trade deals and close US plants.
Yesterday the massive 219% tariff imposed on Bombardier is absurd taking into account that Boeing is also heavily subsidized by the US government and does not even offer a comparable plane to Bombardier’s.
Canada must not allow any changes to the Chapter 19 dispute resolution mechanism . The US want this clause eliminated which would result in any disputes going forward not being reviewed by an impartial panel.
Canada and Mexico are currently negotiating new trade deals with China, India, the UK and the EU.