"to allowCanadaTo become the 51st state of the u. STrade negotiationsSince returning to the white house this year, the government formed by trump has repeatedly waved “tariff sticks” to pressure the countries concerned to negotiate with them, with canada as a priority。
In response to repeated threats by the trump administration, canada has also launched a wave of “failure to america”: protests have broken out in many places, and canadian stores are placing united states wine on their backs ... Today, the canadian economy is in the midst of “uncertainty” brought about by united states tariff policies。
In an interview with red star news, michel ogle, director general of international trade and market competition of the confederation of independent enterprises of canada (cfib), stated that for canadian enterprises, particularly small and medium-sized enterprises, changes in united states tariff policy meant increased uncertainty, which could translate into real economic losses. Ogle said that the current rules that underpinned trade in the north american market had been disrupted, and trade tensions had shaken confidence and led to a shift of business priorities from the united states。
Trump and canadian prime minister kany (information chart)
Nearly half of the company's profits are falling
"sustainability" becomes the business focus
The trump government has shown a back-and-back attitude on the issue of “customs on canada”. It has been assessed that canada may eventually enter into a trade agreement with the united states, but no one knows how long it will take: “when we look forward to seeing the relationship between the prime minister (kani) and the president of the united states improves, us minister of commerce lutnik will bring bad news.” according to ogle, the greatest impact of such an unstable tariff policy in the united states on canadian enterprises, particularly smes, is “an increase in uncertainty”, followed by higher operating costs for enterprises。
According to an analysis of red star news, rising taxes, rents, insurance and other operating costs, coupled with growing regulation, have put pressure on many smes and the current business environment is undoubtedly challenging. “for decades, canadian and united states enterprises, especially small and medium-sized enterprises, have relied on stable and predictable trade rules.” according to ogle, this relatively stable trade rule gives confidence and allows the entire north american market to function efficiently, “but recent trade tensions have shaken confidence”
Royal bank of canada economists report that the targeted tariffs imposed on aluminium in the united states disproportionately affect manufacturers
Prior to the trade dispute, more than half of the cfib member enterprises deal directly with the united states, while many other member enterprises operate indirectly with the united states through suppliers and customers. Today, ogle states, uncertainty, rising costs, and supply chain disruptions are prompting canadian smes to rethink their dependence on the united states. “at present, nearly half of the smes (in the case of the cfib) have shifted their business focus completely or partially from the united states, and many others are planning to do so.”
In ogle's view, the shift in focus and markets of canadian firms indicates a decline in confidence in the united states, an once reliable trading partner, as well as a conscious strategy for canadian smes to actively seek and build stable, reliable and diversified supply chains and markets. At the same time, however, she stressed that the united states remained an important economic partner for canadian smes, particularly in specific industries. “restoring the stability of trade rules is therefore important.”
“nearly all smes are in a state of anxiety.” according to ogle, 82 per cent of these enterprises indicated that their economic prospects were uncertain, 63 per cent of them had higher operating costs, about half of them had lower profits and earnings, and 56 per cent had difficulty in setting competitive product prices。
A canadian supermarket is responding to tariff pressures by promoting canadian goods
The uncertainty generated by such tariff policies is being translated into substantial economic losses for enterprises, and the loss of confidence by enterprises means that entrepreneurs are becoming more cautious in their daily and long-term decision-making. “smes are less likely to invest, recruit, expand or engage in risky behaviour when confidence is lacking, but instead focus on cost control and survival.” according to ogle, this has slowed down economic activity overall. “it is a matter of concern that nearly one third of smes have begun to reduce their staff and that some are even considering permanent closure.”
Moving towards cooperation with other countries
Canada towards eurasia
In recent days, the office of canadian prime minister carney has issued a statement stating that there are many officials in charge of trade between canada and the united states. Minique leblanc is expected to meet with his american counterparts in mid-january to relaunch negotiations. As previously reported, in october this year trump suspended trade negotiations with canada because of an advertisement. (as previously reported, trump opened an asian business, and on his way to high city, he spoke to kosumi and announced that canada would be subject to a 10 per cent tariff on an ad)
Under the unstable tariff policy of the trump government, canada is actively approaching the rest of the world. In a speech in ottawa earlier this year, kani stated that the nature of canada's trade relations with the united states was changing. In the context of the global “more volatile and competitive”, the government of canada is prepared to “build a stronger economy”。
The container terminal in vancouver, canada, has visualized china
Phil lake, director of the economic project of the united states center for strategic and international studies (csis), stated that the attitude of the current united states government towards canada was very different from that of tradition (the attitude of the united states government towards canada), which also aroused strong discontent among the canadian people, “canada is now taking very seriously the extreme transformation of united states trade relations with the united states”
Against this background, canada has looked to non-united states markets. A number of canadian firms have abandoned expansion in the united states and turned their attention to european markets. In view of their geographical location and historical ties, canadian enterprises had rarely previously looked to markets outside the united states, but in less than a year the trump government had subverted traditional relations between the two countries. In may this year, bruce dunlop, head of the office of the canadian export development agency (ecdc) in london, stated that he had received, on average, one telephone call from a canadian company each month requesting access to the european market. And now, almost every day, i get a call。
On march 17th, canadian prime minister kany met president fah's mark long
In fact, canada and the european union had entered into free trade agreements as early as 2016 — the comprehensive economic trade agreement (ceta) — and canada and the united kingdom (after the united kingdom's graduation) had entered into similar trade agreements. According to dunlop, 99 per cent of canada's tariffs in bilateral trade with the european union and the united kingdom were cancelled under the agreement。
At the same time, trade between canada and asian countries has gradually increased. In september, canada and indonesia formally signed a comprehensive economic partnership aimed at reducing trade barriers and simplifying investment procedures to allow better access to each other's markets for goods. In november this year, canada entered into a bilateral investment agreement with the united arab emirates and signed an agreement to expand air services. Also in november, during the g-20 leaders summit in south africa, kani and prime minister modi of india agreed to restart stalled trade agreement negotiations. It is reported that this is the latest sign of a rapprochement between the two countries。
Meredith lily, professor of international affairs at carlton university, canada, who had served as adviser to former prime minister stephen harper on international trade during his government, stated that canada's engagement with these asian countries was “in response to slow and difficult negotiations with the current united states administration”. Lily noted that cooperation with the current united states administration was difficult, “but we cannot expect canada to diversify export markets immediately. That should be the goal of our long-term efforts.” according to information received, in october, kani indicated that canada planned to double its exports to non-united states markets over the next 10 years in order to reduce its dependence on the united states economy。
