Linda Hasenfratz: Canada must look inward and outward to unleash long-term prosperity

We have free trade agreements with 56 countries around the world — 65 per cent of the world’s economy, writes Linda Hasenfratz. Let’s get out there and bring amazing Canadian products to the world. Photo by Delfinkina/Getty Images/Postmedia files

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For perspective, no other country accounted for more than five per cent of export volumes last year. Our economies, supply chains and workforces are deeply intertwined, and both nations thrive when trade flows freely.

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However, new U.S. tariffs, such as the Section 232 tariffs on autos, steel and aluminum, have threatened this stability, creating uncertainty and challenges for businesses, workers and communities anchored by manufacturing and agriculture. That is why it is critical our government urgently acts to get a trade deal done that promotes shared prosperity.

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Our economies are inextricably linked: American workers and businesses succeed when Canadian workers and businesses succeed. Despite the rhetoric stating the opposite, Canada is vitally important to the U.S.

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The U.S. sells more goods and services to us than we do to them, and Canada is the largest customer for no less than 36 American states. We matter to them, and they matter to us. That is a strong foundation to form an agreement. This is a time for pragmatic, focused negotiations that deliver results for Canadians and Americans alike. Let’s get it done.

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Priority one is to negotiate something in the interim to remove the 232 tariffs on autos, metal and metal derivatives. There are levers we can pull to get a deal done, and we need to do that. Increase regional value content (RVC) and perhaps agree to minimum U.S. content in vehicles if necessary. Consider dairy subsidies.

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Are we really willing to sacrifice making vehicles in this country to continue to protect certain sectors?

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Next priority, renegotiate CUSMA. Again, there is a deal to be made here to secure the future of trade with our biggest and most important trading partner. But CUSMA negotiations are just a starting point; Canada must strengthen connections to global markets.

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Our country is uniquely positioned, with abundant natural resources — energy, minerals, water and farmland — accounting for nearly 20 per cent of Canada’s nominal gross domestic product (GDP). We also have a skilled, productive workforce and an amazing artificial intelligence technology sector that is transforming our manufacturing industry every single day.

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Excluding government workers and not-for-profit workers, Canada has had robust productivity growth — more than 50 per cent over the past 25 years. Canadian manufacturing productivity has outpaced the U.S. steadily for more than a decade now.