Tom Mulcair is a former leader of the federal New Democratic Party of Canada between 2012 and 2017, and a columnist for CTVNews.ca. When Prime Minister Mark Carney hinted, earlier this summer, that Canada might actually remove some of the counter-tariffs we’d imposed on the U.S., many were left scratching their heads. After all we’ve been through, how did that make any sense? Turns out that Carney was right, because we had conceded the negotiating high ground to U.S. President Donald Trump by putting tariffs on goods that were supposed to be exempt under existing deals. You’ve got to work really hard to put Trump on the right side of the law but that’s what we had done. As the dust settled on the histrionics and bluster of team Trump, it became clear that the Americans had been careful not to breach the Canada-U.S.-Mexico trade agreement (CUSMA). On that, the Americans were right. How could Trump claim that he wanted to renegotiate CUSMA if he didn’t respect the deal that we already have? When we imposed those counter-tariffs, the idea was to do just that: counter the American move. Instead, Canada wound up applying tariffs even on goods that are exempt under CUSMA. The real sticking point In the course of negotiations, it became clear that those counter-tariffs had become a real sticking point. We were the ones who hadn’t respected our biggest existing trade deal, not the Yanks. Trump crowed, as usual, that it was about time we removed the counter-tariffs. Carney said, humbly, that he’d been assured during this week’s conversation with Trump, that removing the counter-tariffs would help move negotiations along. Both are playing to type. Of course none of this will counter Trump’s overarching public security pretense for his tariffs, based on a bold-faced lie about the Canada-U.S. border and fentanyl. That is the toughest nut to crack but should be top of mind as we begin, along with Mexico, to renegotiate CUSMA with the Americans. American lawmakers will always want to ensure that no trade deal is going to affect their sovereign right to defend their borders against danger. Trump wasn’t going to miss the opportunity to invoke that kind of escape clause, because it can’t be challenged, at least not quickly enough to make a difference. There’s an old rule about legal drafting that’s always made me smile: when drafting it is not sufficient to achieve a level of clarity so that a person in good faith can understand; you require a level of clarity so that a person in bad faith cannot misunderstand. Trump, of course, is in the latter category. Don’t negotiate against yourself We have learned at least one thing in our dealings with Trump: don’t negotiate against yourself. We unilaterally put an end to our digital services tax that was an earlier “deal breaker” with the Americans. All we got in return was mockery from Trump, who said that Canada had caved! I still believe that removing that tax was a wise move because it did clearly target American companies. It was an irritant but you don’t throw away your best cards, with nothing in return, you negotiate. Here, at least, Carney is saying that Trump has assured him that removing the counter-tariffs on CUSMA compliant goods will help negotiations. Let’s hope so but when your only guarantee is Trump’s word… Carney is a quick study. He’s learning at vertiginous speed about the complexities of the federal government, from labour negotiations (the Air Canada debacle) to working with provincial and territorial leaders, all of whom have their own agenda and priorities. When Manitoba Premier Wab Kinew said that Carney’s “elbows down” actions didn’t “match the moment”, he was of course channelling the frustrations of many Canadians. At the same time, he was clear that his own province’s priorities don’t seem to matter too much in Ottawa. Manitoba has been hard hit by Chinese tariffs on canola. The premier said he would instead like to see the federal government remove tariffs on Chinese electric vehicles “if we’re in the business of removing tariffs.” He makes a good point that simply underscores the fact that for far too long we’ve been putting ourselves in lockstep with the Americans on trade issues. There was never any real debate in Canada as we imitated the American move to add 100% tariffs to Chinese electric vehicles. Instead, our federal and provincial governments pitched tens of billions of dollars at some of the most prosperous companies in the world to build battery plants. Those plants are to build batteries with a technology that may well be obsolete by the time they open, if they ever do. Our secret weapon Much has been said and written about the team surrounding Carney. People like Privy Council Clerk Michael Sabia and Chief of Staff Marc-André Blanchard get this stuff. Trudeau-era ministers like Mélanie Joly and Dominic LeBlanc were trained in a different environment and at times appear to be waiting for their orders. Our secret weapon in all of this is Canada’s outstanding Ambassador to the U.S., Kirsten Hillman. That team has all the potential in the world to deal with the proximate cause of our current trade woes: the Donald. At the same time, we have to be staking out our own path to foreign policy, generally, and to international trade, in particular. That’s a much tougher job and one that team Carney is particularly well-equipped to handle. It’s been less than four months since our general election that saw Carney head to Ottawa with a refreshed team and a clear mandate: stand up for Canada. Standing up for Canada doesn’t just mean staring down a bully, it means finding new trade partners, new opportunities for our vast natural resources and a renewed sense of what we can accomplish together. That’s the tough part.
