Gross Political Incompetence

Trudeau speaks with the media in the foyer of the House of Commons Wednesday. (Adrian Wyld/Canadian Press)

Gross Political Incompetence

"In just the past few days on the trade diversification file, our government has met both the outgoing and incoming Mexican administrations, rallied momentum within the Pacific Alliance trading bloc [comprised of Chile, Peru, Colombia and Mexico], and charted a course to ensure Canada becomes the most trade-connected country on the planet."
Jim Carr, Minister of International Trade Diversification, Canada

"It is highly unusual, after more than a year of three-party talks, for Canada not to participate in the new discussions between U.S. and Mexican negotiators."
Chris Sands, head, Center for Canadian Studies, Johns Hopkins University

"Until Canada signals to the White House or tells them even privately, 'We're going to give you something that you want', they're going to be on the outside looking in."
"The negotiating style of the Trump administration is so kind of balls to the wall, just being prepared to sit down earnestly and roll up their sleeves isn't close to enough at this stage."
"Their whole charm offensive, which I think was a good idea, Lighthizer views as an end-run. In his mind, she [Canada's Chrystia Freeland] went around his back all over Capital Hill."
Unnamed insider NAFTA negotiation source

"I know that Canada continues to implore the Americans to get the table restarted, but as of yet, they've been rebuffed."
"We really have been pens-down from a trilateral point of view since May."
Flavio Volpe, president, Canadian Automotive Parts Manufacturers Association

Canada and Mexico are dealing with a volatile, spontaneously impetuous deal-maker who despite ignorance of the devil's details believes implicitly that his brain is crammed with superior knowledge unknown to others; above all the capacity to strike a deal benefiting himself or, in his capacity as President of the United States, one of huge benefit to those who voted him into office. He is also a man devoted to fulfilling his campaign promises, one of which was to tear up the three-way trade agreement between his country, Canada and Mexico because, as he put it, it 'cheats' the U.S.

The U.S. is not and never has been on an altruistic streak in trade, willing to forego some benefit to itself in favour of giving a hand up to less powerful and less economically stable states, even if they're its neighbours. Under any American administration there has always been trade tension with Canada, from lumber, steel, poultry and eggs, dairy products, shingles and any other number of issues. There are times when American negotiators have allowed themselves to relent in favour of their trade partners but not many,

The United States, after all, is significantly wealthier, more internationally powerful and certain of its exemplary presence on the world stage as a democratic powerhouse, a military power, a global financial giant for whom trade is not an absolute necessity, given its huge population able to consume whatever it produces. Trade is secondary where for Canada, trade is essential to its well-being as a trading nation in natural resources. It is a natural outcome that in negotiations the powerful become bullies, while those dependent on its largess must prepare to be supplicants.

The realities of politics demand that those who are less powerful submit to the demands of their overlords, as it were. Unless their arrogance and political naivete convince them that they need not, and in the case of Canada and Mexico, the intention to defend themselves from predatory trade practices upsets the balance if the bully decides to give no quarter. In the face of which Canada's Prime Minister unwisely rejected a bone flung to him by President Trump, leaving Trump furious with little Justin Trudeau, intent on 'pulling his weight' and in so doing leaving Canada in the lurch.

And nor is Canada's Minister of Foreign Affairs (oops, Global Affairs) a study in diplomatic niceties, managing to convey the impression that she is as trade-ignorant and politically naive -- leavened unfortunately with the arrogance of the ignorant who feel righteously entitled -- a step above Trudeau. The previous Conservative-led Government of Canada under Prime Minister Stephen Harper paved the initial way for free trade agreements benefiting Canada. The current prime minister, Justin Trudeau, banking on personal charm, launched a global pledge for union entitlements, linking feminism, gay and transgender rights, religious freedom with free trade agreements.

The free trade agreement with China Trudeau was prepared to sign, inserting all these non-trade, 'human rights' demands persuaded China not to advance let alone sign such an agreement. The Trans Pacific Partnership went the same route, with Trudeau insisting on a name change that would incorporate human rights into the trade deal's nomenclature. A deal with India went south when Trudeau made a fool of himself and Canada in his Bollywood-costumes charade, making him the globe's laughing stock.

And now, the United States rebuffed a request by Canada to be allowed to attend a scheduled meeting between the U.S. and Mexico to capitalize on the bi-lateral progress made by both in earlier discussions. By flouting Canada's 'independence' and superiority, Trump saw himself given a back-handed insult by his former pet Trudeau, now viewing him as an ingrate. And the launching of a political appeal directly to sympathetic American Senators and Congressmen opposed to Trump failed to endear Freeland to her U.S. trade counterpart; an initiative that should logically have taken place before, never during discussions.

The Liberals, to save face at home at a time when the U.S. economy is booming and Canada's is slumping, portray themselves as defending Canada's most vital interests. And they point a razor-sharp finger of accusation at their Conservative opposition for not supporting the self-harming stance the Liberal government has taken, while at the same time excoriating the previous government for its failure in signing onto free trade deals, the deals the Conservative government did all the preliminary work on, leaving it to the Liberals to sign. To no avail.

It has come to this! Biting the hand that feeds you has led to a dilemma that the hard-pressed current Liberal government and Canadians will likely regret for some time.

Rather than reinforce the good fortune of Canada’s co-location to the U.S. which accounts for our economic well being, time and again successive Liberal governments have played the canard that we are superior to the United States. This false superiority for domestic political gain has finally come to a shuddering halt.

Due to the Kennedy round of multilateral trade negotiations (The GATT; General Agreement on Tariffs and Trade), now the WTO (World Trade Organization) I was hired as a so-called expert on U.S. tariffs and trade by the Trade Department to help analyze the ongoing U.S. Kennedy round submissions. As the head of the special projects unit of Canada Customs I had just completed the U.S. and Canadian adoption of the updated harmonized code of the GATT. Until then the U.S. and Canada were the lone holdouts. The rest of the developed world had adopted the harmonized code for some time back. The reason for this was that the U.S. would dictate to the GATT what it was willing to accept to protect its industries. As all trading countries were interested in preserving and enhancing their trade with the world’s most lucrative market, those US. grandfather provisions are, for the most part, still in place. If you wish to continue to play in the U.S. market, you will do what the U.S. wants, regardless of the so-called rules.

When Pierre Trudeau was prime minister, his intense dislike of Americans and the particular president, Richard Nixon, resulted in his attempted third option or trade diversification strategy. This turned out to be a complete and utter failure. When I arrived at Foreign Affairs and International Trade I was amused at the continual churning of the efforts consumed in signing on to all the useless ‘protocols’ and agreements which involved route countries of no international clout and mainly representing third world economies who wished to convey the notion that they are important, and to ‘punch above their weight’, which plays nicely to the home crowd. Many of us trade commissioners would smile at the endeavours of our political colleagues. The U.S. has never signed on to these shams.

Jim Carr thinks that momentum generated by Chile, Peru, Columbia, etcetera, will “provide momentum for us in the Pacific-Alliance trading block to ensure Canada becomes the most trade-connected country on the planet”. In other words, more churning. Mr. Carr does not realize that our absorption of bananas and other fruits and vegetables from these countries must be at a choking point.

Former Prime Minister Chretien at an open microphone once quipped that it was good for his party to bash the Americans. A long time behavioural trait of Liberal governments which American officials had in the past recognized and mentioned to me in a benign manner over the years. I guess this predilection has reached its zenith with this administration.

It is sad to see Canadians continually demonstrating against the United States concerning their purely domestic business. Pity that Mr. Trudeau and company have bought the hype that ‘punching above your weight’ at balloons has heft.

Foreign Affairs Minister Chrystia Freeland gestures to photographers following a photo op with U.S. Secretary of State Rex Tillerson in Ottawa. (Adrian Wyld/Canadian Press)