Former PM Harper Urges Ottawa to Diversify Trade After US-China Tensions Escalate

Stephen Harper, Canada's former prime minister, has called on the government to diversify its trade markets and reduce its reliance on the United States, citing the need for the country to be proactive in the face of rising tensions between the US and China. Harper made his comments at the annual Midwestern Legislative Conference meeting in Saskatoon, where he emphasized the importance of finding new trading partners to avoid being threatened by the US. He also highlighted Canada's security concerns, suggesting that the country should invest more in its defense to reduce its dependence on the US.

Key Takeaways:

• Harper has urged the Canadian government to find new trading partners outside the US to reduce its dependence on a single market. According to Harper, Canada's geographic proximity to the US does not justify the degree of dependence on a single market.
• The former prime minister emphasized the need for Canada to take a proactive approach to trade diversification, particularly in light of the escalating US-China tensions.
• Harper stated that Canada should no longer rely on Washington for its security, citing the need for the country to invest more in its defense to be independently responsible for its land, seas, and skies.
• Harper noted that former Prime Minister Justin Trudeau's government had previously asked him for advice on trade and security issues, and he had urged them to deepen economic and security ties with the US. However, his advice changed recently, with a new focus on diversifying trade and security partnerships.
• Harper criticized the US for using a "failed economic policy" of pursuing economic growth through tariffs, stating that the US still needs trading partners and that Canada should not be in a position to be threatened in this way.
• Harper expressed hope that the US would recognize that it cannot take its international allies and trading partners for granted, highlighting the need for a "realization to seep into the US" that Canada and other countries will not be undermined.
• Harper spoke out against China's use of World Trade Organization mechanisms to undermine global trade, highlighting the importance of upholding global rules and norms.

Statistics:

• Canada's trade deficit with the US in 2022 stood at CAD 64.8 billion (Source: Statistics Canada)
• In 2020, Canada's total trade with countries other than the US accounted for 26.6% of its total trade, up from 24.8% in 2015 (Source: Statistics Canada)
• The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) allows Canada to undertake trade with other countries that respect global rules, with the trade pact including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam (Source: Government of Canada)

Sources:

• The Canadian Press
• Stephen Harper (speech at the Midwestern Legislative Conference meeting in Saskatoon)
• Statistics Canada
• Government of Canada (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)