Evidence Senate Foreign Affiars and Trade Committee on CUSMA

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THE STANDING SENATE COMMITTEE ON FOREIGN AFFAIRS AND INTERNATIONAL TRADE

EVIDENCE


OTTAWA, Tuesday, March 10, 2020

The Standing Senate Committee on Foreign Affairs and International Trade met this day at 3:30 p.m. to study the subject matter of Bill C-4, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States.

Senator Leo Housakos (Chair) in the chair.

[English]

The Chair: Honourable colleagues, this is the Standing Senate Committee on Foreign Affairs and International Trade. My name is Leo Housakos. I am a senator from Quebec, and I’m the chair of the committeeThe committee has been asked by the Senate to do a pre-study of Bill C-4, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States.This is the beginning of our hearings on the Canada-U.S.-Mexico Agreement Implementation Act.

Colin Robertson, Vice-President and Fellow, Canadian Global Affairs Institute: I encourage you to implement the Canada-U.S.-Mexico Agreement. It is not free trade, but it is freer trade. It is not perfect, but it is much better than no deal.

CUSMA gives us a set of revised rules essential for growing and sustaining our vital continental commerce, roughly about 75% of our trade. Its dispute settlement provisions provide the stability necessary for business and investment decisions. It draws much from the original NAFTA with updates drawn from the Trans-Pacific Partnership in digital commerce, intellectual property, labour and the environment.

CUSMA caps a decade-long effort by federal and provincial governments representing different political parties to open doors to key markets across the Pacific, the Atlantic and, of course, to sustain North America.

As this committee observed in its 2017 report, free trade agreements are a tool for Canadian prosperity. Trade generates two thirds of Canada’s GDP, making us the twelfth largest export economy in the world.

The trade deals — CUSMA, CPTPP, CETA — are a tribute to our leadership in governments, business and labour. They prove that we can make common cause on issues of national importance. Trade diversification is necessary, but for Canada, when it comes to trade and security, it will always be the United States and then the rest.

Now we need to make our trade deals work for us.

First, there is unfinished business when it comes to regulation, infrastructure and internal trade.

Initiatives launched by the Harper and Obama governments and continued by the Trudeau and Trump governments around regulatory cooperation and beyond-the-border action plans are buried within our bureaucracies. Progress requires political oversight. I encourage this committee to hold hearings to identify the roadblocks and keep governments’ noses to the grindstone.

U.S. Democrats and the Trump administration have agreed to a US$2-trillion infrastructure plan, although there is no agreement on how to pay for it. Since there is no procurement provision in the new trade agreement, Canada needs to link into this initiative. To get the best value for our citizens, premiers and governors need to work out the kind of reciprocity deal that the U.S. and Canada achieved in 2010. Again, it was the premiers.

Getting our goods to market means improvements to our ports, pipelines and grids, rail and roads. Canada has an infrastructure program, but is it moving fast enough? This should be an area of close collaboration with all levels of government. Again, parliamentary oversight of the process and progress is essential.

Free trade within Canada remains the unfinished business of Confederation and I applaud and underline the recommendations of the Standing Senate Committee for Banking, Trade and Commerce in its 2016 report, Tear Down These Walls.

Second, the all-Canada effort to remind Americans that our trade partnership is mutually beneficial must become a permanent campaign. American protectionism is older than the republic. It will continue no matter who is president.

While we can’t vote or make donations to campaigns, we can illustrate by district and state the jobs created by Canadian trade and investment. I encourage you to use your travel authority to go to Washington and meet your counterparts. I also encourage you to adjust the rules so you can travel throughout the United States.

This must be a permanent campaign encompassing all sectors, including our cultural industries. I applaud this committee’s recent report on making cultural diplomacy the main stage of Canadian foreign policy, and I would say that it starts with our North American market.

Third, we need to know more about North America, especially the United States.

Given our propinquity and innate understanding of the United States, why aren’t we turning this to our advantage? How many serious centres or research chairs focusing on the U.S. and our continental trade are there in Canada? You will be very disappointed in the answer.

Canada’s influence in the world is measured to a large extent by our understanding of the United States. By using our knowledge and relationships with Americans, our ability to leverage our influence in Washington and state capitals makes us a more desirable partner with the rest of the world. They also have to do business with our often complicated and sometimes confusing neighbour.

In conclusion, I encourage you to pass CUSMA while taking initiatives that will grow our commerce.

Senator Massicotte: Mr. Robertson, as you know, in negotiations they tried hard to improve the Buy American Act and all the infrastructure investments, but they got nowhere, and therefore they’re relying somewhat on WTO. What are your comments on that? Is there a way to get there? Because this is a big piece and a big number.

Mr. Robertson: Yes, I believe there is. Inevitably premiers and governors who have to administer the budget when it comes to infrastructure want to get the best value. One thing they also want to avoid is cartels within their state. So by opening it up to other vendors, you don’t necessarily take them, but perhaps it helps keep local vendors more disciplined. I referred to the 2010 reciprocity agreement on procurement.

At the federal level, we weren’t making much progress. It was something we knew. President Obama had put half a trillion dollars into infrastructure to restart the economy after the 2008 recession and we wanted a piece of it. This is how it turned out: Premier Wall came down with seven of the premiers to a conference of national governors in February 2010 in Washington and sat down. They said, “Look, we’ll open up our market if you open up your market, for the reasons I outlined.”

And it worked. We got this multi-page agreement. There were some exceptions and things, but at least it got us in the door.

I’m afraid that, with the pressure the U.S. is putting on the government procurement agreement negotiated in the WTO, we’ll have to resort to the relationships we have, and we are better placed than any country in the world to do that.

I talked about the relationships that you too can forge; many of you have. That’s going to be important, because more than any country in the world, Americans like us. We’ve got an advantage. We don’t like them as much as they like us, but we should take this as our advantage.

So I would say that we can achieve this, but it wouldn’t necessarily be the traditional trade policy route.

Senator Dawson: We had also said that, under the expectations, the Americans expected us to pass it quickly. That was many months ago. We promised them; we said, “Send it back to us, and we’ll pass it quickly.” So I don’t know how long we can continue working on the wording, but I certainly feel you’re right that we need to have some comments and give some direction to the government. But I certainly wouldn’t want to delay it that much.

Mr. Robertson, you were accused of using “weasel words” in the other place, so maybe you want to defend yourself as a parliamentary privilege.

Mr. Robertson: I thought what I said was clear, but I’ll just say that there is sometimes a temptation to look at trade agreements like a Christmas tree and put all sorts of things on them. I’ll just say that, with regard to data, there are other places where that is being discussed.

If it needs the time Dan says it does, I’m not sure this is the agreement. For that same reason, the environment is there and good, but we’ve got climate agreements, and we’ve gotten labour through the ILO. There are other fora where these things should be considered.

Never forget that we went into this thing with Mr. Trump saying that it was the worst deal ever negotiated, and his commerce secretary telling us that this was about Mexico and Canada giving and the U.S. getting. I think we’ve come out of this extremely well. It is our biggest market. It’s not perfect; it can doubtless be improved, but we can do an awful lot of this stuff under the existing agreement.

I’m not as fussed as some that there is a sunset clause, because there is a sunset clause in every agreement, effectively. You can dump these things off with six months’ notice, anyway. It is important, as with NAFTA, that you keep the thing evergreen. When we negotiated NAFTA, we didn’t travel with these things in our pockets. We weren’t thinking about big data, Google and Facebook. They weren’t around.

So this agreement is as good as it gets under the circumstances. We can make improvements, but let’s make improvements with it in place.

 

Senator MacDonald: I’ll direct my question first to Mr. Ciuriak, but I’d like the others to feel free to join in afterward.

I have two studies here, one from the C.D. Howe Institute and one from Global Affairs Canada. There are some discrepancies between these two studies.

I want to speak to U.S. section 232, national security tariffs. The C.D. Howe Institute states:

. . . the failure of the new agreement to eliminate the application of US section 232 national security tariffs on imports from its North American partners signals future risk concerning assured access to the US market.

The CUSMA does not prevent the future application of Section 232 tariffs, which have been revived by the Trump administration for ad hoc protectionist purposes . . . U.S. forbearance in applying section 232 tariffs to Canada and Mexico on autos, should those measures be adopted, is only incorporated through a side letter.

On the other hand, Global Affairs seems to say the opposite, that Canada has secured an exemption for many future U.S. section 232 tariffs on automobiles and auto parts.

Did we secure a legal exemption or not? If we did, does it hinge on the way according to a side letter in the 60-day exemption?

Mr. Robertson: A lot of it comes down to interpretation. You have seen the official Canadian government interpretation that this gives us an exemption. That is the word we will take to our American counterparts, and we will have to continue to do that. Part of the reason that the steel and aluminum tariffs were lifted was because of the pressure that came from within the United States. It wasn’t Canadian pressure, although I think we helped make it possible by reminding all of the people who use Canadian aluminum — and they are in the hundreds of thousands. The actual number of steel and aluminum makers is maybe like 42,000, but there are hundreds of thousands who use our products. They were the ones who put pressure on their state legislators, their congressional delegates and on the administration to say, “Lift this, because it is doing measurable harm.”

The interpretation I would put forward would be the one that Global Affairs has taken, but it will be important for us to continue that permanent campaign to remind Americans of what they did. While Americans are extremely litigious, they also like to think they follow the letter of the law. If we put our interpretation of the letter of the law out, which is contained in the Global Affairs study, I think that will go some distance. I would just like to underline to you that when you deal with the United States, nothing is ever permanent. You have to be down there all the time reminding them of your interests. It is political.

Senator MacDonald: This question will again be for all three of you. It refers to article 32.10 of CUSMA, which requires the three parties to give three months’ notice to the other two countries before it begins negotiating a free trade deal with any non-market country. This provision has been described as unprecedented in that it requires any party to inform the other parties of the intention to convince any free trade negotiations with a non-market country at least three months before starting such negotiations.

I have a couple of quotes here from international trade law specialists. One is Clifford Sosnow, a Canadian international trade law specialist who said:

The measure sets up a level of closeness and consultation that one sovereign country typically doesn’t have with another sovereign country prior to reaching a trade deal with another country.

He added that:

It is quite remarkable.

Gary Hufbauer, senior fellow at the Peterson Institute for International Economics in Washington has further stated:

I know Chrystia Freeland says it’s not a restraint on Canada but we’ve never seen a provision like this, which holds out the threat of divorce if the U.S. doesn’t like the terms of an agreement.

Regarding that provision, Hufbauer also said that:

It puts a cloud over the ability of Mexico and Canada to negotiate with China and other ‘non-market countries.’

I guess I want to ask you two questions. Have you ever seen a provision like this in an international trade agreement? Is it not unusual that the Americans would, in essence, be informed about the content of Canadian trade objectives and in the negotiation with a non-market economy before the Canadian Parliament would be informed?

Mr. Robertson: I would concur with Larry. I am not fussed by it. I saw it, and I know some people are troubled by it. I think it was much less about Canada and Mexico than it was about internal politics in the United States and the Trump administration wanting to demonstrate to their base that they could do this. So I think, for the reasons Larry has outlined and as I have discussed with Gary Hufbauer, that, for the practical effect on Canada, the question is — and you can be Clintonesque here in semantics — when do you actually start an agreement? Some could argue that Mr. Harper and Mr. Trudeau had, in fact, already started to improve the economic relations with China. But as we know, they are in the deep-freeze for now, so I just don’t think it will have practical effect. It’s much more likely that the United States will have to be consulting us and Mexico as they move toward some kind of a closer agreement with China, which is certainly not what Mr. Trump had in mind when he insisted Mr. Lighthizer put this in the agreement.

enator Dean: Supply management was a major issue going into these talks, and it was a major and highly public expectation of U.S. negotiators to the highest level. We know what came out of it: some limited access to some limited products with a phase-in period.

I wonder if you have any reactions about where we started with this, what the expectations of U.S. counterparts were and where this ended up.

Mr. Robertson: Mine is perhaps not a conventional view on supply management. My view is we look at this through the wrong end of the telescope. Just as we compete extraordinarily well with agri-food, meat and pork or our grains, for example — and I think we could do the same with dairy — for whatever reason, we have decided to adopt a highly protectionist approach to what I think could be a great export for Canada. The better model for us would be New Zealand and Australia, which also had a kind of constrained market with high tariff walls. New Zealand now provides something like almost a third of that which is exported throughout Asia. There is big demand for protein in Asia now. It will grow. I think we could be a piece of this, but we have constrained ourselves.

Anybody who eats our cheese — I used to serve our artisanal cheeses from Quebec when I was on posting — would say, “Give us more of it. We simply can’t get it.” I think we should look at this as a way of 15 years ago or 20 years ago, as we opened up the grain market, at one point we had some constraints on our beef and pork. We compete extraordinarily well.

With dairy, for whatever reason, we have chosen not to. We have protected it. We protected it again. We have opened the market up, but still 90% of that market is highly protected for the 5,000 or 6,000 dairy farmers across Canada. It means we pay higher prices as consumers, and I think it also constrains an industry that could do very well, but there are some additional constraints in this with the Americans so that we will not be competing.

My view on this is not conventional. I think in terms of the negotiation tactics, the government did extremely well. They did what they said they were going to do. They managed to save it with very little opening to the United States. A couple of percentage points is what we basically gave through CETA and through the TPP as well.

enator MacDonald: I have a quick question about what Senator Dean was asking. I share a lot of people’s thoughts about supply management in principle. I’m not a big fan of it.

However, I always said I agree with it in practice when it came to the U.S. because the U.S. subsidizes their agriculture in a way that we do not, to tens of billions of dollars a year. Were you familiar with any effort of the Canadian government where they put U.S. subsidies of agriculture on the table? Or did we ask them to put them on the table as a counter to what they were asking us to do?

Mr. Robertson: I can certainly tell you, when we did the Canada-U.S. agreement and the NAFTA, we made a list of U.S. subsidies, and you’re absolutely correct. The agricultural subsidies in the United States make us look like pikers. I do not know for sure, but I would think that we would have done that kind of homework again as we went into this agreement because we weren’t sure where the Americans were coming from.

Senator MacDonald: They have an oversupply problem. Wisconsin produces almost the same amount of dairy as Canada does.

Mr. Robertson: Part of the reason this was a big deal is because not only was Senate minority leader Chuck Schumer from New York pushing this one, but the then-Speaker at the time, Paul Ryan, was a Wisconsin cheese farmer.

Pass CUSMA

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The NAFTA replacement isn’t perfect , but it’s good enough. Ottawa should pass it

Colin Robertson The Globe and Mail February 24, 2020

 

The United States-Mexico-Canada Agreement is not perfect. It is freer trade, not free trade, but Parliament needs to pass it and get on with making it work. Trade agreements are like riding a bicycle: Keep cycling and when you hit bumps make adjustments. But keep cycling.

Consider where we started. U.S. President Donald Trump damned it as the “worst trade deal ever.” For U.S. Secretary of Commerce Wilbur Ross, it was for Mexico and Canada to give and the United States to get.

The Trump administration thought it had us over a barrel because of Mexico and Canada’s dependence on the U.S. market. While we each buy about 18 per cent of U.S. exports, the U.S. takes 75 per cent of Canada’s exports (and it’s even higher for Mexico).

Despite these challenges, we did well. We kept dispute settlement, drowned investor-state and preserved our sacred cows (supply management and the cultural exemption). Labour and the environment are integral parts of the agreement, intellectual property is updated, and digital trade is recognized. The unjust steel and aluminum tariffs are gone. The auto pact has become managed trade, but as with softwood lumber, we will cope.

While Mr. Trump would never acknowledge it, the new deal drew much of what is old from the previous North American free-trade agreement and much of what is new from the Trans-Pacific Partnership, another of his bugbears.

Thanks to Speaker of the House Nancy Pelosi and congressional Democrats, a clause was removed from the agreement that would have extended protection (and costs) for biologic drug companies. This could lead to cheaper drug prices. Labour and environmental enforcement provisions are strengthened. The strong bipartisan congressional support for the deal may just exorcise the phobia around trade that dogged NAFTA. When surveyed, Americans generally endorse free trade over tariffs.

USMCA joins the transatlantic and transpacific agreements in giving us preferred access to those economies most committed to freer trade. These deals span the Harper and Trudeau governments. It’s a tribute to their leadership as well as those of our premiers and legislators, business and labour. Despite our current distemper, the trade deals prove that our leaders can make common cause on issues of national importance.

Trade generates two-thirds of Canada’s GDP. It makes us the 12th-largest export economy in the world. Now we need to consolidate our gains.

First, there is unfinished business when it comes to regulation and infrastructure.

Initiatives launched by the Harper and Obama governments around regulatory co-operation and Beyond the Border action plans are buried within our bureaucracies. Progress requires political oversight: legislative hearings to identify the roadblocks and keeping governments’ nose to the grindstone.

Getting our goods to market means improvements to our ports, pipelines and grids, rail and roads. This requires close collaboration between all levels of government. U.S. Democrats and the Trump administration have agreed to a US$2-trillion infrastructure plan (although there is no agreement on how to pay for it). Since there is no procurement provision in the new trade agreement, Canada needs to link into this initiative. To get best value for our citizens, premiers and governors need to work out the kind of reciprocity deal that the U.S. and Canada achieved in 2010.

Second, the all-Canada effort reminding Americans that our trade partnership is mutually beneficial must become a permanent campaign. American protectionism is older than the republic. It will continue no matter who is president.

While we can’t vote or make donations to campaigns, we can illustrate by district and by state the jobs created by Canadian trade and investment.

If we think we know everything about the U.S., we are wrong. How many serious centres for the study of U.S. issues do we have here in Canada? How many Canada research chairs focus on the United States and our trade? Not nearly enough.

Trade diversification is necessary for Canada, but when it comes to trade and security, it will always be the U.S. and then the rest. Canada’s influence in the world is measured to a large extent by our understanding of our southern neighbour.

By using our knowledge and relationships with Americans, we can leverage influence in Washington and state capitals. This also makes us a more desirable partner to the rest of the world. They expect and look to Canada for advice on how to handle our complicated, often challenging, neighbour.

Given the circumstances, USMCA is a good deal for Canada. Not perfect, but it secures access to our largest market. Parliament needs to move on its implementation and make the investments that will realize its potential.

Committee on International Trade CUSMA Testimony

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STANDING COMMITTEE ON INTERNATIONAL TRADE

EVIDENCE

THURSDAY, FEBRUARY 20, 2020

The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)):

I’m calling the meeting to order, pursuant to the order of reference of Thursday, February 6, 2020, Bill C-4, an act to implement the agreement between Canada, the United States of America and the United Mexican States.

Mr. Colin Robertson (Vice-President and Fellow, Canadian Global Affairs Institute):

 

Chair, my remarks draw from my previous experience as a foreign service officer serving on the team that negotiated the Canada-United States Free Trade Agreement and the NAFTA, on my postings in New York, as consul general in Los Angeles, as first head of the advocacy secretariat at our Washington embassy and, more recently, as a member of the trade advisory committee to the deputy minister of international trade.

I encourage members to pass the legislation implementing the Canada-U.S.-Mexico agreement. Trade agreements are like riding a bicycle: Keep cycling and when you hit bumps make adjustments as necessary, but keep cycling. CUSMA is the best possible agreement under the circumstances. It’s not perfect, but for Canada it both preserves access to our largest market and preserves the North American platform incorporating Mexico.

The Canada-Mexico story gets scant attention but it’s the hidden treasure of the NAFTA story. Mexico is now our third-largest trading partner and, as we witnessed, a valuable partner and ally in recent trade negotiations with the Trump administration with not just the new NAFTA, but in reversing U.S. protectionism through country of origin labelling.

The new agreement is not perfect. lt is freer trade not free trade, but consider where we started. President Trump claimed it was the worst deal ever negotiated. Commerce secretary Wilbur Ross said it was for Mexico and Canada to give, and the United States to get. The Trump administration thought they had us over a barrel because we, Mexico and Canada, were much more dependent on the U.S. than they were on us. We each account for close to 18% of U.S. exports, while for us the U.S. takes almost 75% of our exports. For Mexico, it’s about 80%.

Trade generates two-thirds of our GDP, making us the 12th-largest export economy in the world. For the U.S., trade represents just 27% of its GDP. Mr. Trump well understood these asymmetries.

Despite these disadvantages, we updated the NAFTA with new chapters on digital trade, intellectual property, labour and the environment while keeping dispute settlement and supply management. At the same time we managed to drown investor-state provisions. The unjust steel and aluminum tariffs are gone. Our auto trade is managed trade. It’s a bit like that of softwood lumber, but we should be able to manage this to support jobs and more investment.

Thanks to the Democrats in the House of Representatives, our gives on patent protection for biologic drugs that would have raised health care costs for provinces were rolled back. The Democrats also secured better enforcement on environmental and labour provisions, all of which we had sought in the negotiations.

ln short, we have a high-quality North American trade agreement, something we sought to obtain through the trans Pacific partnership. lnstead, we now have an up-to-date Canada-U.S.-Mexico agreement with the advantage over the U.S. in trans-Pacific and trans-Atlantic markets through CPTPP and CETA.

This leads me to my recommendations. First, CUSMA is the result of an all-of-Canada effort involving the Prime Minister, ministers, premiers, parliamentarians and legislators, business and labour leaders all working with their American counterparts with complementary messages and purpose. This work must continue and become a permanent campaign. American protectionism is older than the republic, and it will continue no matter who is president. We need trade diversification, yes, but we cannot change geography. That geography gives us access to the biggest and most innovative market in the world.

Working Capitol Hill daily from my embassy, and through my experience at my consulates, I learned that just as all politics is local so is all trade. While we can’t make donations to campaigns, we can illustrate the jobs that Canadian trade and investment create by district and by state. We need to keep this data current. Importantly, you as parliamentarians need to keep reminding Americans of these facts, and do this through regular meetings with U.S. legislators—local, state and federal.

There are lots of opportunities, and not just the Canada-U.S. Inter-Parliamentary Group but regional conferences of state and national legislators, important forums like PNWER and NASCO, as well as the sectoral industry and farm group meetings. First, you need to be there to develop relationships and to make the case for Canada. Use your travel points to go to Washington, and I encourage you to adjust the rules for travel throughout the United States. As you will appreciate, nothing is better than a meeting on your home turf.

Second, with the trade agreement in place there is still unfinished business when it comes to regulation and infrastructure. The thicket of national, provincial and local regulations and standards needs to be harmonized or made complementary. CUSMA helps, but we’re also working on, through separate initiatives launched by the Harper government and Obama administration, regulatory co-operation and beyond the border. These have been continued by the Trudeau government and the Trump administration. They continue, but after the initial burst of enthusiasm, I’m afraid they’re now buried within our bureaucracies. Progress requires political oversight by this committee, including hearings to identify the roadblocks, raise consciousness and keep government noses to the grindstone. Your constituents will thank you.

(1015)

People and trade pass through our border points, as well as roads, rail, hydro and pipelines, bridges and tunnels, airports and rail stations. They need improvement. Too often they are choke points that hamper passage and productivity. Canada has an infrastructure program, but is it moving fast enough? This should be an area of close collaboration by all levels of government. Again, parliamentary oversight of the progress is essential. The U.S. administration and Congress are already talking about a trillion-dollar infrastructure program. We need to ensure it is complementary to our efforts, and because procurement is not part of CUSMA, leave it to governors and premiers to work out a procurement agreement as we did in 2010.

Harvard’s Belfer Center points out that North America is the next great emerging market, possessing abundant energy, a skilled workforce, technology and a big market. However, we need infrastructure.

Meanwhile, we enjoy first-mover advantage of the U.S. with the European Union and CPTPP nations, but only if we seize these opportunities. Our competitiveness depends on our ability to get goods quickly to market, whether in North America or across our oceans.

Third, we need to know more about North America, especially the United States. Diversification is a laudable goal, but for Canada, when it comes to trade and security, it will always be the United States and then the rest. Anyone in business will tell you market intelligence is essential, whether you are buying or selling. For example, how many of you can tell your constituents how many of their jobs depend on U.S. investment and trade? We can do it for the U.S., and the Business Council of Canada has created an interactive map that can pinpoint jobs by congressional district and state. Why don’t we have one for Canadian constituencies, and why not include TPP and CETA? People understand why trade matters to them.

Given our propinquity and innate understanding of the United States, why aren’t we turning this to our advantage? How many serious centres for the study of the U.S. are there in Canada? How many Canada research chairs focus on the United States and our trade? You will be disappointed in the answer.

I encourage you as parliamentarians to pass CUSMA. I encourage you to press for investments that serve our national interest.

In conclusion, we always need to keep in mind that Canada’s influence in the world is measured to a large extent by our understanding of the United States. By using our knowledge and relationships with Americans, our ability to leverage our influence in Washington and state capitals makes us a more desirable partner with the rest of the world, because they also have to do business with our often-complicated neighbour.

Hon. Ed Fast:

I’m going to go to Mr. Robertson.

Welcome, Colin. You and I have known each other for a long time. You made a curious statement. You said that this was the best agreement under the circumstances.

“Under the circumstances” sound like weasel words. Essentially, we didn’t get a better deal. We didn’t get a win-win. We got the best we could under a Donald Trump. Is that what you were implying with those words?

 

Mr. Colin Robertson:

Yes, sir.

 

Mr. Sukh Dhaliwal:

Thank you.

My next question is for the Canadian Global Affairs Institute. It is my understanding that you had a conference to discuss aspects of CUSMA with a range of experts, diplomats and consultants.

[Expand]

Mr. Colin Robertson:

Yes, we have an annual trade conference in Ottawa.

[Expand]

Mr. Sukh Dhaliwal:

What were the key messages from that conference about this deal?

[Expand]

Mr. Colin Robertson:

The conference was held while the negotiations were still taking place. We’ve had two, and in each case we discussed various aspects of the agreement and what Canada should be seeking. We had participation from the current trade team, including people such as Steve Verheul.

[Expand]

Mr. Sukh Dhaliwal:

Are you satisfied that most of those discussions are implemented in this agreement?

[Expand]

Mr. Colin Robertson:

Yes, sir. Trade negotiations are a give-and-take. Again, as I was saying in response to Mr. Fast, the circumstances were that the United States came in, and as Mr. Ross, the commerce secretary, put it quite succinctly, it was for Canada and Mexico to give and the United States to get. I think we did extremely well under the circumstances. We preserved that access to the U.S. market, which is vital, as has been pointed out by other witnesses, and we were able to add new chapters on labour and the environment.

It’s not a perfect agreement. I would just also point out that we shouldn’t expect a trade agreement to be the be-all and end-all for anything. We have, after all, the Paris climate accords, which I think are the appropriate vehicle to deal with climate. We have the International Labour Organization measures, which we abide by. Trade agreements should not be seen as the catch-all for everything, because then they sink.

 

Mr. Daniel Blaikie:

Thank you very much.

[English]

Mr. Robertson, I wanted to touch a bit more on the buy America provisions and the importance of procurement. You mentioned some of the ways in which Canada might consider trying to make up for what’s not in this agreement in terms of access to procurement.

I have New Flyer Industries in my riding, which produces a lot of buses and sells most of them into the United States. Buy America has affected jobs in Winnipeg because of the content requirements.

I was surprised recently when there was a meeting of governors and Canadian premiers, and Premier Pallister from Manitoba didn’t go and didn’t send anybody on his behalf. It seems to me that the province-to-state relationship is going to be important for businesses that export to the U.S. in terms of keeping jobs here in Canada. Could you speak to that a bit more?

[Expand]

Mr. Colin Robertson:

I think you’re correct. Premiers and governors, because they’re the level where the spending usually takes place, particularly when it comes to major infrastructure, want best value, and best value often comes from having a variety of vendors, not just those in your state or province. Having outside competition that has equal access will often prevent cartels in your own province or state, and, therefore, you get far better value for public money.

This was really the philosophy that was behind…. When I was at the embassy, we were trying to get a procurement agreement at the national level. It wasn’t working. We since have one through the World Trade Organization, but when the United States under the Obama administration was doing their big build as part of the post-recession effort to recover, we wanted access, as you put it, for New Flyer and others so we could sell buses and things into the United States.

We found that the best way to do it was by having premiers go down and meet with governors. Both saw an advantage. Both of them were charged with spending monies that came from federal governments, so they worked out a deal in 2010.

 

  1. Rachel Bendayan:

Okay.

[English]

My next question is for Mr. Robertson from the Canadian Global Affairs Institute.

Thank you very much for your testimony earlier. To follow up on a question from my colleague the Honourable Ed Fast with respect to your statement, which I believe was that this is the best agreement possible under the circumstances, would you, having reviewed the agreement in its entirety, agree that it is a better agreement overall for Canada than the original NAFTA was?

[Expand]

Mr. Colin Robertson:

I think, grosso modo, it updates the original NAFTA, which was absolutely necessary. There are parts of it that are managed trade—and we talked about autos. There are pieces we would have liked, such as the procurement chapter, for example, but it wasn’t going to work. However, given the circumstances, it is the best possible agreement we could have negotiated, and we are much further ahead with it because it’s a kind of crown jewel. We have the CETA and the CPTPP, but the critical agreement for us is always having access to the United States. Now we have that security, under a very difficult and sometimes complicated administration.

[Expand]

Ms. Rachel Bendayan:

Thank you very much for that very political answer.

You mentioned the lack of statistics or estimates of the number of jobs in Canada that rely on trade with the United States, but there are some statistics. I’m thinking particularly of the percentage of our country’s exports that go to the United States. I wonder if you could speak to that.

(1115)

[Expand]

Mr. Colin Robertson:

We do have statistics but we need…and you as members of Parliament, when you speak to your constituents, should be able to say, “Look, your jobs….” Again, we hear from Meadow Lake and we know the importance of trade, but people want to know specifically what it means. We can do this now down to the legislative and really the constituency level in the United States. We have the capacity to do it in Canada, and I think we should, because all members of Parliament should have access to those figures. I would include in those the importance of the European and Asian markets, because, I’d point out, we’re the 12th-largest exporting country.

 

Most people don’t realize how important trade is to our prosperity. That’s what pays for our health care and education. You as members of Parliament could be better equipped if you could get the statistics and make them available. They are readily available because we have the tools to do that with other countries.

 

Mr. Vance Badawey (Niagara Centre, Lib.):

Thank you, Madam Chair.

I appreciate the opportunity to sit on this committee today. As many know, I chair the Standing Committee on Transport, Infrastructure and Communities. The reason I’m here today is the crossover that this issue and all the trade issues have for both committees. It’s a pleasure to be here and to bring forward some thoughts on behalf of that committee.

First off, Madam Chair, I want to preface my comments by stating that I do anticipate the passing of CUSMA, which will in fact align with CETA and, of course, the CPTPP. That’s what I’m going to premise my comments on today with the witnesses we have before us.

There was a mention earlier by Mr. Robertson of the trillion-dollar procurement program that we must embark on. In fact, if Canada wants to and needs to invest in strategic infrastructure investments to strengthen our overall international trade performance, it’s imminent that we begin to work with our different committees here in Parliament, but more importantly with our partners, both in the public sector—municipal in particular—and in the private sector.

I will be bringing forward today to committee a few motions that will align with some of that direction, including a study focusing on current and anticipated labour shortages throughout the country, in particular as it relates to the transportation sector; undertaking a study on Canada’s rural digital infrastructure and prospective solutions to the gaps in wireless infrastructure deployment throughout rural Canada; looking at the gas tax; and, of course, once again, the need to work with our municipal and private sector partners, as well as our indigenous communities, to put in place strategic investments that align with our trade agreements such as CUSMA, CETA and the CPTPP.

I want to ask a question that is primarily for Mr. Robertson of the Canadian Global Affairs Institute.

With respect to your comment on the trillion-dollar procurement program, I’ll throw a question out there for you. I’m going to stop talking and allow you to comment on what I’ve just talked about and the importance of same. How important is it for Canada, as a nation, to work binationally in establishing our procurement and, of course, the strategic infrastructure investments that will align with and complement the trade agreements we have in place?

[Expand]

Mr. Colin Robertson:

I think it’s vitally important. When we export, we don’t know which port it’s going to go to. Sometimes from Saskatchewan it goes through the United States and out through Portland and Seattle, whereas American goods sometimes will come up to Canada. Integrating those, that infrastructure, as I said in my remarks, is vital, especially as the United States appears to be, probably in the next administration—whether Democrat or Republican and working with Congress—prepared to put in really big money. I mentioned trillions of dollars. In fact, it could come to a couple of trillion dollars.

We need to be a piece of that, both in the access to it in terms of procurement but also in linking up rail, road and air. Again, it’s that North American capacity we have to become the truly competitive platform for the world. We now have the pieces in place, but we need the infrastructure. I would applaud what you and your committee are doing and your suggestions on how we can move forward, and I encourage you to talk with your American counterparts, because what really will make this happen is legislator talking to legislator.

Mr. Vance Badawey:

If I may, Madam Chair, I think that discussion has to continue, not only across standing committees here in Parliament but also across borders. Once again, I would be very interested to hear, in moving the yardsticks down the field to get ourselves to that goal line, what thoughts you and many witnesses have on those issues and also on what those strategic investments should be.

I’ll ask a question. With respect to, as you mentioned, rail, road, air and water, of course in my riding in Niagara we have the Great Lakes, which are binational. With the trade that’s going to be coming in from and out of the Midwest—a lot of it—especially in regard to going over to the EU and other diversified areas versus just the United States, we’re recognizing that the Great Lakes, and of course the St. Lawrence Seaway and the Welland Canal, will be used a lot.

What investments do you see with respect to binational investments, infrastructure investments among the rail, the water, the air and the roads, between both Canada and the U.S., as well as internationally?

The Chair:

I’m sorry, but I have to interrupt.

Mr. Robertson, could you give us a short answer? My apologies, but just a short answer, please, because you have 20 seconds remaining.

Mr. Colin Robertson:

Okay. I’ll just say that NASCO, which is tri-country, has come up with a whole series of excellent recommendations, which I would refer to your committee.

 

 

 

 

 

 

 

 

 

 

USMCA/CUSMA Approval

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Canada’s House of Commons expected to approve USMCA by Easter

The Vice President of the Canadian Global Affairs Institute is confident the United States-Mexico-Canada Agreement will be approved by the House of Commons by Easter.

19 February 2020, at 11:10am

The USMCA has been ratified by the United States and Mexico with hopes of implementation by 1 July leaving only Canada to finalise the agreement. Colin Robertson, the Vice President and a Fellow of the Canadian Global Affairs Institute notes the Trudeau Government has identified ratification as a top priority but the Liberals do not hold a majority and will need to pick up additional votes.

“The Conservatives have said they will not obstruct the current and interim leader, Andrew Sheer, who has resigned as leader and there will be a Conservative leadership in June to replace him,” says Robertson.

“He has declared that the Conservative party will support the legislation and not hold it back. He’s doing so in part because of strong encouragement from all of the premiers.

“The premiers have written to all of the parties saying they would like to have this passed as quickly as possible. My sense is that it will go through fairly quickly because the official opposition supports it, as does the government.

“As for the other parties, the next largest party is the Bloc Quebecois with 32 seats and they are all based out of Quebec. Their leader has said they want to see better compensation for dairy farmers. The NDP has never met a trade deal that they liked, at least federally.

“This is interesting because all provincial premiers, including the NDP Premier of British Columbia support this agreement, as did previous NDP premiers from Saskatchewan and Manitoba from in an earlier time with NAFTA, so they’ll oppose it.

“The Greens will likely oppose it but it shouldn’t have any problem getting through the House of Commons before or just after Easter.”

Robertson says, assuming the deal is approved in the House if Commons, it is then likely to spend a couple of months in the Senate. He expects it to receive Senate approval in mid-June at which point it will be given Royal Assent by the Governor General.

Canada and the UN Security Council

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Canada, Ireland and Norway are competing within our regional grouping for two seats with two-year terms beginning in January, 2021. Winners require two-thirds of the votes cast.

With five months left, it’s an open race, although some think Canada will lose. We started later than Norway and Ireland. Both have good campaigns.

Norway’s development assistance consistently averages 1 per cent of gross national income (GNI) – well above the 0.7-per-cent UN target. The Norwegian government’s recent paper on multilateralism is compelling and articulate. Ireland’s A Better World development strategy is also first-class. Emphasizing gender equality, climate action, governance and humanitarian need, it commits Ireland to achieve the 0.7-per-cent target by 2030. Irish aid is currently about 0.4 per cent. The Irish celebrate their neutrality but participate in peace operations; Ireland currently fields 623 peacekeepers while Norway deploys 135 and Canada 45. The Irish have also enlisted U2′s Bono in its bid to secure a seat.

While Canada ranks with Norway among the top 10 givers of humanitarian assistance, that aid represents just 0.26 per cent of GNI. Canada’s detailed election platform for the UN seat focuses on climate change, gender equality, peace, economic security and multilateralism. It builds on our 2018 G7 Charlevoix summit program.

The last time Canada ran for a seat, we lost to Germany and Portugal. Until then, we had run and won in every decade since 1946. Losing in 2010 was rationalized as the Stephen Harper government’s lacklustre campaign. They were ambivalent about the UN, taking perverse pride in the mantra “we don’t just go along to get along.”

We are in this race because Prime Minister Justin Trudeau wanted it. What better way to demonstrate that “Canada is back?”

To win, Mr. Trudeau needs to campaign hard. Where he cannot go, he should send our former prime ministers and governors-general, former ambassadors and internationalists. We should set a date by which we will meet the 0.7-per-cent GDP development targets and make the proposed Canadian Centre for Peace, Order and Good Government a funding vehicle for our effective but impoverished development non-governmental organizations (NGOs).

A total of 129 votes are needed to win. We need to tie down the 33 votes from Latin America and the Caribbean, go after the 54 votes from Africa as well as the 53 votes from Asia and the Pacific. The Norwegians and Irish probably have most of Western Europe’s 28 votes, while the 23 from Eastern Europe are problematic. We need to cultivate our fellow members of the Commonwealth (52 votes) and la Francophonie (74 votes). While our support for Israel may deter some Muslim nations (50 votes), others are impressed by our work on behalf of the Rohingya and our refugee resettlement.

The recent African visits by Foreign Minister François-Philippe Champagne, International Development Minister Karina Gould and other officials need to be part of an ongoing engagement with this often “forgotten” continent. A tour before June by Mr. Trudeau should be part of the strategy, to coincide with the port visits of HMCS Shawinigan and Glace Bay.

The ground game at the UN counts because the vote is secret and cast by each nation’s ambassador. Personal relationships among the envoys matter. Canada’s ambassador, Marc-André Blanchard, is respected, but so is Ireland’s Geraldine Byrne Nason and Norway’s Mona Juul. Ms. Juul was elected in July to lead the UN’s central platform for development.

Scholar Adam Chapnick’s Canada on the UN Security Council should be read by our campaign team. It is filled with useful insights into previous campaigns and Security Council experience. Beating the drum in Ottawa, for example, helps keep the foreign diplomatic corps informed and raises Canadian awareness. Mr. Chapnick warns, however, that by personalizing the current campaign, Justin Trudeau risks making it partisan when what we need is an all-Canada effort.

And if we win? Our traditional role is that of the helpful fixer, and it is necessary. A seat will also give us ongoing access to the Chinese and Russians, which can help defrost these relationships.

A seat will require more resources – people and money – for diplomacy and development. We need embassies in hot spots such as Pyongyang and Tehran. Diplomatic relations are not a housekeeping seal of approval but the practical means for conducting business. The Iranian plane-crash tragedy is a reminder of the utility of having diplomats in difficult places.

Losing in 2020 would be traumatic for the Trudeau government and a rude shock to Canadians’ international self-image. We need to put our campaign into high gear and make it an all-Canada effort.

I would also encourage you to listen to this podcast with Adam Chapnick and read his CGAI paper on Canada and the UN Security Council. 

Canada and the UN Security Council seat

THE GLOBAL EXCHANGE PODCAST

January 27, 2020

On today’s Global Exchange Podcast, we are joined by Adam Chapnick to discuss Canada on the UN Security Council.

Participant Biographies:

  • Colin Robertson (host): A former Canadian diplomat, Colin Robertson is Vice President of the Canadian Global Affairs Institute.
  • Adam Chapnick: Deputy director of education at the Canadian Forces College and a professor of defence studies at the Royal Military College of Canada.

Related Links:

Recommended Books:

UN Security Council Seat

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Canada needs to campaign harder in UN Security Council bid, analysts say

OTTAWA—The ill will of autocratic countries like China, and some worthy head-on competitors, should compel the Trudeau government to campaign harder for a seat on the United Nations Security Council, analysts said Friday.

That advice came as Foreign Affairs Minister François-Philippe Champagne said, after a series of meetings in Africa, he is “cautiously optimistic” about Canada’s chances of winning a seat on the Security Council this year. Champagne was following Rob Oliphant, his parliamentary secretary, and International Development Minister Karina Gould, who have taken separate trips to Africa this month.

Speaking to reporters Friday after a trip to Mali and Morocco, Champagne brushed off criticism by many analysts who say that Canada’s low spending on foreign aid and its contribution of only a few dozen military personnel to UN peacekeeping will hurt it in the upcoming election.

“I was pleasantly surprised by the support I received from the host nations I visited. I think people recognize Canada can play a positive role in the world,” Champagne said.

Canada faces stiff competition from Norway and Ireland for the two temporary seats coming open on the most powerful UN body, which will be the subject of a June vote for a two-year term starting next year. Both countries spend more on aid and have contributed more military personnel to peacekeeping missions.

Countries vying for seats need two-thirds support in the secret-ballot process — more than 128 votes — and Africa is one of the most influential blocs, with 54 countries voting.

Canada needs the support of Muslim and Asian countries and two of the major players in those regions, Saudi Arabia and China, have unresolved diplomatic spats with Canada. While both countries are influential in their voting blocs, China has spread its diplomatic footprint into Africa with big spending on infrastructure and by generously doling out its own development spending to win friends and influence policy.

“We are still being outspent by others and have plenty of autocratic countries who don’t want to see Canada get a seat and use it to be righteous in human rights, gender, and other values we hold dear,” said Bessma Momani, an international-affairs expert at the University of Waterloo.

She pointed to China, Saudi Arabia and Russia as countries that oppose Canada’s candidacy.

Prime Minister Justin Trudeau committed Canada to a Security Council run in 2015 as part of his “Canada is back” pledge, following the 2010 loss of a seat to smaller and economically fragile Portugal under the previous Conservative government.

In September, Canada sent a delegation led by former prime ministers Jean Chretien and Joe Clark to the annual UN General Assembly meeting of world leaders to press Canada’s case.

Colin Robertson, vice-president of the Canadian Global Affairs Institute and a former diplomat, said Trudeau himself needs to get out of the country and campaign or brace for a “real setback” in foreign policy.

“Losing in 2020 will be traumatic for Justin Trudeau,” said Robertson, a retired diplomat. “And it would be a rude shock to Canadians who think the world likes us.”

If Trudeau decides to campaign hard, the election is still winnable, he added: Norway will likely win one of the two seats, but Canada could still edge out Ireland.

Robertson said Trudeau should set a target date for Canada to meet the UN’s benchmark for development spending of 0.7 per cent of gross national income. Canada’s current level is less than 0.3 per cent.

Fen Hampson, a diplomacy expert at the Normal Paterson School of International Affairs at Carleton University, said Canada’s politicking for UN votes will essentially boil down to what it can concretely offer specific regions and countries. And in Africa, that usually leads to a conversation about foreign aid, he added.

“This is a buying-votes game,” said Hampson.

“I think we’re mounting a very solid campaign. It’s going to take more than nice words and friendly homilies about ‘Canada is back.’”

Champagne was noncommittal Friday about whether he was optimistic about any increase in aid spending in the Liberals’ upcoming budget.

“When it comes to the overall budget, there are going to be discussions around that.”

USMCA paased by US Senate

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Congress just passed the USMCA. Now it’s Canada’s turn.

Marielle Segarra Jan 17, 2020

Mexican President Enrique Pena Nieto, U.S. President Donald Trump and Canadian Prime Minister Justin Trudeau, sign the USMCA. Martin Bernetti/AFP via Getty Images

Three years ago, the leaders of the U.S., Canada and Mexico signed the new trade agreement. But the trade deal hasn’t actually gone into effect yet, because it needs to be approved by the legislatures in all three places.

Mexico has signed off on it. The U.S. Senate just did yesterday, after House Democrats negotiated for more environmental and labor protections. Now it’s down to Canada.

It shouldn’t be that hard to get the USMCA through the Canadian Parliament. The Liberal Party, led by Prime Minister Justin Trudeau, supports the deal. According to Colin Robertson, vice president at the Canadian Global Affairs Institute, the conservative opposition party will come around.

“The previous leader of the Conservative Party said he could have got a better deal, but I do not anticipate that the conservatives will oppose it because they are pro-free trade as well,” Robertson said.

The country did make some concessions in the trade deal — like allowing U.S. farmers to sell more of their dairy products tariff-free in Canada.  

But Robertson said he doesn’t expect the Canadian government to change anything about the deal — even though the U.S. did — because Canada has been negotiating behind the scenes this whole time. Eric Miller, a global fellow at the Woodrow Wilson Center Canada Institute, made a similar observation.

“At one point, Chairman Neal, from the House Ways and Means Committee, paid a visit to Ottawa to brief Canada on where the discussions were going,” Miller noted.

Steps like these gave Canada a chance to say what it was OK with, and what it wasn’t.

Trudeau Foreign Policy

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Throughout his first term as PM, Justin Trudeau was successful in boosting diversity, social justice, environmentalism, and Indigenous reconciliation, but he struggled in the House of Commons and mishandled some key events that put a strain on Canada’s national unity. Colin Robertson with the Canadian Global Affairs Institute says Trudeau’s foreign policy decisions left many shaking their heads, as Canada found itself caught in the middle of the dispute between the US and China. With Canada in the running for a seat on the UN Security Council in June, Robertson says losing would be “traumatic” for Trudeau’s government “and their sense of Canada’s place in the world.” Robertson joins Gormley to discuss his new report scrutinizing Trudeau’s foreign policy over his first term in office, and – more importantly – what Trudeau should be doing differently this time around.

Trudeau and Ian

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Trudeau set right tone in the days after Flight 752 downing, say foreign policy experts

By NEIL MOSS      
Trudeau’s comments have underpinned Canada’s interests-based foreign policy, says former diplomat Colin Robertson.

In the days after Canada learned that it was Iran that downed a Ukrainian airliner shortly after it took off from Tehran, the somber, measured, but outraged tone of Prime Minister Justin Trudeau’s public comments has struck the right chord, say foreign policy experts.

But with only a supporting role in the crash investigation and little diplomatic presence in Iran, questions persist over how Canada can find the truth behind the Jan. 8 downing of Ukraine International Airlines Flight 752 by Iran, which led to the death of 176, including 57 Canadians on board.

T

Colin Robertson, a former diplomat and current vice-president of the Canadian Global Affairs Institute, said Canada should always have an interests-based foreign policy and Mr. Trudeau’s (Papineau, Que.) comments reflected those interests.

“You’ve got to always think of what is your overriding objective,” Mr. Robertson said, adding for Canada, it’s to get an investigation and justice for the victims.

“Anything you do, [you have to ask] is this going to help or is this going to hurt?”

Mr. Robertson said while there may be a short-term gain for condemning Iran, it won’t help get compensation for the victims.

He added that if Mr. Trudeau took a harder line with Iran, it could lead to Canada being shut out.

After a period of silence in the midst of rising tensions between Iran and U.S., Mr. Trudeau stepped in the public spotlight Jan. 8 following news of the plane crash and the firing of more than a dozen of missiles by Iran at military bases in Iraq where Canadian, American, and coalition soldiers are stationed. He followed that press conference with two more on Jan. 9 and 11.

Mr. Trudeau said on Jan. 11 that “shooting down a civilian aircraft is horrific” and “Iran must take full responsibility.”

He called Iran’s admittance of downing the aircraft an “important step towards providing answers for families” and added that more steps need to be taken.

“Canada will not rest until we get the accountability, justice and closure that the families deserve,” he said.

Kathy Fox, the head of the Transportation Safety Board (TSB), told reporters in Ottawa on Jan. 13 that there are “early signs” that Iran is willing to grant Canada a “more active role” in its investigation of the crash, while stressing that Iran is leading the investigation.

Two TSB officials have obtained visas to investigate the crash site and wreckage in Tehran. A second TSB team is expected to be deployed once it’s determined where the download and analysis of the cockpit and voice recorders will be held

Former high-level diplomat Jeremy Kinsman said that Mr. Trudeau’s Jan. 8 comments of “genuine sorrow” and dealing with the situation as a tragedy opposed to being antagonistic had a “salutary effect” on the internal debate in Iran, contributing to the Iranian government’s decision to announce that they had shot down the Ukrainian airliner, which Tehran said was mistakingly downed by a surface-to-air missile. Initially, Iran denied responsibility for the plane crash.

“[Trudeau] said the right things. He said it the right way,” said Mr. Kinsman, who was on Mr. Trudeau’s foreign policy advisory council in the lead-up to the 2015 election.

Kaveh Shahrooz, a human rights activist and senior fellow at the Macdonald-Laurier Institute, said while Mr. Trudeau set a good tone with a “tough line” and a demand for an investigation, he would like to see an additional call for prosecution of those responsible.

“What I worry about is the Iranian government will identify a few, sort of, low-ranking people and try to get this over with,” said Mr. Shahrooz, a former senior policy adviser on human rights at Global Affairs. “What I would like to see the prime minister do is recognize whoever ordered this attack on the plane ought to be prosecuted no matter where they are up the chain.”

Iran announced that on Jan. 14 that it has made arrests of “some individuals” after a “extensive investigations,” according to an Associated Press report.

On Jan. 13, Mr. Trudeau participated in his first broadcast interview since the plane was downed, telling Global News that recent escalations in the region led to the plane’s downing.

“If there were no tensions, if there was no escalation recently in the region, those Canadians would be right now home with their families,” he said.

Mr. Shahrooz tweeted that Mr. Trudeau’s comments ruined his “good week.”

“The crash happened because the Iranians are both malevolent and incompetent,” Mr. Shahrooz told The Hill Times. “They struck the American bases at the time of their choosing, so they could have ground all the flights and they didn’t do so. … I don’t think it has much to do with escalating tensions. At the end of the day, the only regime that can be blamed for this is the Iranian one.”

U.S. House of Representative Republican Minority Leader Kevin McCarthy said on Jan. 14 that the United States has no blame for the downing of the Ukrainian plane.

Tories call for IRGC to be listed as terrorist entity, NDP wants Parliament to return early

In the fallout of the plane crash, the Conservative Party has been calling for the Islamic Revolutionary Guard Corps (IRGC) to be listed as a terrorist entity.

The listing of the IRGC stems from a private member’s motion by Conservative MP Garnett Genuis (Sherwood Park-Fort Saskatchewan, Alta.) in 2018, which received the support of the Liberals at the time.

The call to list the IRGC as a terrorist organization was backed by Jewish advocacy group B’nai Brith and the Council of Iranian Canadians on Jan. 13.

Mr. Kinsman said listing the IRGC would only serve to be antagonistic.

“The fact is, they are the army of the state,” Mr. Kinsman said. “I think that is just playing to the crowd.”

Jocelyn Coulon, a former policy adviser to then-foreign affairs minister Stéphane Dion and author of Canada is Not Back: How Justin Trudeau is in Over His Head on Foreign Policy said in an email that listing the IRGC will do nothing and said Canada should be practical.

The Conservatives are also calling for Iran to compensate the victims of the crash, repatriate their remains, and hold those who are responsible for the downing of the aircraft accountable.

The Canadian government—and others who had Iranian dual citizens perish aboard Flight 752—will have to negotiate with Tehran regarding how and where the bodies of dual nationals can be buried, as Iran doesn’t recognize dual citizens, according to The Globe and Mail.

Former Conservative prime minister Stephen Harper said a change in Iran is needed in order “to see peace in the Middle East” at a conference in New Delhi.

Meanwhile, the NDP has called for Parliament to be recalled before its scheduled resumption on Jan. 27 in order to address the situation as well as the status of the Canadian-led NATO training mission in Iraq.

Mr. Coulon said recalling Parliament would just serve as “political theatre” and do nothing to get the needed information and quicken the inquiry.

The former diplomats and Mr. Shahrooz said the situation is too important for it to become a political football.

Crash could provide opportunity to resume diplomatic relations with Iran, former diplomats say

Mr. Robertson said Canada should use the current situation to re-establish diplomatic ties with Iran.

“Having a presence in Tehran should be one of the outcomes of this,” he said.

Canada has been without diplomatic relations with Iran since Mr. Harper closed the Canadian embassy in Tehran and booted Iran’s diplomats in Ottawa in 2012.

Then-candidate Trudeau pledged to restore diplomatic relations during the 2015 election campaign.

In addition to the TSB officials in Iran, Global Affairs has sent a Standing Rapid Deployment Team to provide consular services.

Mr. Trudeau has been in contact with Iranian President Hassan Rouhani, as has Foreign Affairs Minister François-Philippe Champagne (Saint-Maurice-Champlain, Que.) with Iranian Foreign Affairs Minister Mohammad Javad Zarif.

Mr. Shahrooz said the current situation is an argument for why Canada cut off diplomatic ties in the first place.

“Diplomatic relations with them only emboldens them in some way,” he said. “I think restoring diplomatic relations with Iran should be viewed as some kind of reward and at the moment we have nothing to reward Iran for.”

Mr. Kinsman said the return of diplomatic relations isn’t a “seal of approval,” but rather it’s about communicating with another country.

“You simply have to have it,” he said, adding that an embassy opposed to an ambassador is crucial because it gives access to all ministries in a foreign country.

—with files from Beatrice Paez

Justin Trudeau Foreign Policy

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Prime Minister Justin Trudeau: A Foreign Policy Assessment 2015-2019

Prime_Minister_Justin_Trudeau_Header.jpg

Image credit: Adam Scotti/Instagram

POLICY PERSPECTIVE

by Colin Robertson
CGAI Vice-President and Fellow
January 2020

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Table of Contents


Executive Summary

An internationalist and a progressive, Justin Trudeau consistently boosts diversity, social justice, environmentalism and reconciliation with Indigenous peoples. A gifted retail politician, Trudeau prefers campaigning and contact with voters to the hurly-burly of the House of Commons.  He possesses an empathy and emotional intelligence most people found lacking in his famous father, Pierre Trudeau. But are these attributes and causes out of sync with our turbulent times?

Mr. Trudeau is learning firsthand what British prime minister Harold MacMillan warned U.S. president John F. Kennedy what was most likely to blow governments off-course: “Events, dear boy, events.”

As Trudeau begins a second term as prime minister, the going is tougher. The Teflon is gone. He leads a minority government with new strains on national unity. Parliament, including his experiment in Senate reform, is going to require more of his time.  Canada’s premiers will also need attention if he is to achieve progress on his domestic agenda. Does he have the patience and temperament for compromise and the art of the possible?

The global operating system is increasingly malign, with both the rules-based international order and freer trade breaking down. Managing relations with Donald Trump and Xi Jinping is difficult. Canadian farmers and business are suffering – collateral damage in the Sino-U.S. disputes.

In what was supposed to be a celebration of “Canada is back”, there is doubt that Canada will win a seat on the UN Security Council in June 2020. Losing would be traumatic for his government and their sense of Canada’s place in the world. It would also be a rude shock for Canadians’ self-image of themselves internationally.

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Introduction

Prime Minister Justin Trudeau declared “Canada is back” and promised a return to “sunny ways” upon winning a majority in the October 2015 federal election. The son of Pierre Trudeau – Canada’s third-longest serving prime minister – had quickly climbed the greasy pole of politics. For the former drama teacher, “bliss was it in that dawn to be alive”. For his band of Gen Xers, especially those destined for cabinet office, “to be young was very heaven”. William Wordsworth captured the moment. For the temper of the times, however, Trudeau should have kept at hand a copy of Machiavelli’s The Prince.

Four-plus years and a second election later, Trudeau has had a sobering, often frustrating education in the art of governing. Hope and conviction met the realities of managing a cabinet chosen more for its look than experience, a caucus that wanted attention from its leader and not just his acolytes, and a public that is diverse and increasingly skeptical of politicians and governments. All of this was set against an international backdrop of populism, protectionism, rearmament and the breakdown of the rules-based liberal order.

Trudeau has pushed his personal priorities – climate, gender and reconciliation – while grappling with the permanent files that preoccupy all Canadian prime ministers – security, unity and Uncle Sam. As he begins a second term leading a minority government, the achievements are hard won and probably fewer than expected. The road ahead remains bumpy with more ashcans than roses.

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Cabinet-making

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The 2015 throne speech focused on four major priorities: the middle class, reconciliation, diversity  and international engagement. In an unprecedented demonstration of transparency, ministers were all given public mandate letters detailing their objectives.

Even if his government’s foray into “deliverology” was mocked, the independent Trudeaumeter assesses 143 of 230 promises achieved, 67 broken – notably the promised reform of Canada’s first-past-the-post electoral system and failing to balance the budget by 2019 – and the rest in progress.  Notably, during his first term the Trudeau government would decriminalize cannabis and legalize assisted suicide.

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The 2019 throne speech identified five priorities that reflected strong continuity from those of 2015: fighting climate change; strengthening the middle class with its own minister, and more tangibly, a tax cut; walking the road of reconciliation with Indigenous peoples; keeping Canadians safe and healthy with new gun control, although pharmacare is less likely; and positioning Canada for success in an uncertain world.

In terms of foreign policy, the 2019 mandate letters to the ministers prioritized peace operations and the modernization of NORAD’s North Warning System; reaffirmed the Feminist International Assistance Policy; the creation of a Canadian Centre for Peace, Order, and Good Government; the conceptualization of a new cultural diplomacy strategy; the legislative passage of the new NAFTA; the creation of a Canada free trade tribunal; the modernization of the Safe Third Country Agreement with the U.S. and the new border enforcement strategy.

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Gender, Diversity and Feminism

The original Trudeau cabinet reflected gender parity: 15 women and 15 men. Most were under 50, reflecting both generational change and Canadian diversity with two First Nations and three Sikh members. Only 10 cabinets around the world have gender parity, and the global average for women holding ministerial positions is around 18 per cent.

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Speaking at a UN summit (2016) focusing on women, Trudeau promised to continue saying he is a feminist “until it is met with a shrug.” His government introduced “feminist” budgets with a gender equality statement, created a feminist international assistance policy, passed pay equity legislation and made women’s empowerment and gender equality key priorities of the 2018 G7 Charlevoix summit. While there has been the inevitable criticism around delivery, the policy is soundly rooted. As a McKinsey Global Institute study, The Power of Parity (2015), concluded, advancing women’s equality can add $12 trillion to global growth. The Trudeau government’s policy built on work advancing maternal and child health that former prime minister Stephen Harper had personally led.

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Reconciliation

As one of its first actions in 2016, Trudeau’s government signed the UN Declaration on the Rights of Indigenous Peoples. When it comes to reconciliation with Canada’s First Nations, Trudeau said: “We have to be patient. We have to be present. We have to be unconditional in our support in a way a parent needs to be unconditional in their love – not that there is a parent-child dynamic here.”

Canadians, Trudeau argues, have spent decades advancing international goals on poverty and human rights, while failing their First Peoples. Reconciliation is, arguably, the unfinished business of colonialization. Whether this constitutes “ongoing genocide” – a conclusion of the National Inquiry into Missing and Murdered Indigenous Women and Girls (2019) – is debatable.

First Nations, including Métis and Inuit, account for almost five per cent of the Canadian population, with over half living in Canada’s western provinces. Since 2006, their numbers have grown by 42.5 per cent – more than four times the growth rate of the non-Indigenous population.

Is reconciliation working? In the words of Justice and now Senator Murray Sinclair, who headed the Indian Residential Schools Truth and Reconciliation Commission: “Education is what got us here and education is what will get us out.” The commission set out 94 calls to action and in its annual report card (2018), KAIROS, a joint-venture ecumenical program administered by the United Church of Canada, “acknowledges that significant progress has been made in the majority of territories and provinces.” But it will require more time, money and effort.

Ironically, despite his avowed feminism and focus on aboriginal reconciliation, Trudeau would suffer his biggest political setback when two of his most prominent cabinet members, Jody Wilson-Raybould, the first Indigenous Justice minister, and Treasury Board president Jane Philpott quit the cabinet. Trudeau’s principal secretary and friend, Gerald Butts, and his clerk and head of the Public Service, Michael Wernick, would also resign. Wilson-Raybould accused Trudeau and his office of pressing her to give preferential treatment to a Montreal-based engineering firm, SNC-Lavalin and, after the ethics commissioner contravened the Conflict of Interest Act, she sought an apology.

Would an apology from Trudeau have helped? If Pierre Trudeau was unapologetically without regrets, Justin Trudeau’s apologies are frequent, dramatic and sincere. Most of them are for the actions of previous governments dating back to the 19th century over their treatment of the Indigenous population or migrants. Autres temps, autre moeurs. A public opinion survey (July 2019) assessed that most Canadians thought “Justin Trudeau apologizes too much for government wrongdoing from the past.”

Pollsters identify the affair as lifting the Teflon that had once enveloped Trudeau. A plea bargain with a fine that allows SNC-Lavalin to still qualify for government work was reached in December 2019. Trudeau observed that: “there are things we could have, should have, would have done differently had we known, had we known all sorts of different aspects of it.”

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Climate Change

Trudeau has consistently campaigned for climate change action and his government enthusiastically endorsed and signed the Paris Climate Accord. He declared: “With my signature, I give you our word that Canada’s efforts will not cease … Climate change will test our intelligence, our compassion and our will. But we are equal to that challenge.”

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But for Canadians, managing climate is complicated. We are the fourth coldest country in the world after Kazakhstan, Russia and Greenland. We also have abundant quantities of energy sources – coal, oil, natural gas and uranium – that keep us warm during our long winters, and whose export pays the bills for universal health care and public education.

Environmentalists have focused on the pipelines that transport oil and gas, and as with most infrastructure projects, no one wants them in their backyard – the NIMBY problem. Alberta is the richest province in Canada, thanks to long-term investments in technological know-how that have freed its mineral wealth.

But Alberta is landlocked, so to get its oil and gas to market, it depends on pipelines. The Trudeau government cancelled the proposed Northern Gateway pipeline. Another proposed pipeline to Canada’s East Coast was cancelled in part because of opposition from governments in Ontario and Quebec, where Premier François Legault described it as “dirty oil”. Under some duress, the Trudeau government purchased, at considerable public expense from its American owners, the existing Trans Mountain pipeline into Vancouver and promised to complete the proposed twinning project after the conclusion of the court-required consultations, especially with the First Nations on whose lands it transits.

All of these actions, of course, strained national unity. Albertans protested that the equalization funds generated by their “dirty oil” made possible, for example, heavily subsidized day care in Quebec.

Their shared climate commitment and Canadian efforts that helped bring about the Paris Climate Accord originally cemented the bromance between former U.S. president Barack Obama and Trudeau. Obama likely saw in Trudeau a younger version of himself: liberal, multilateralist and committed to diversity and environmentalism.

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Prime Ministers’ Permanent Files

Canadian prime ministers have three permanent files on their desks. The first, in common with every other leader, is to keep the nation secure and the economy prosperous.

The second is to preserve and sustain national unity, no easy task in a diverse country of 5½ time zones, two official languages and  634 First Nations with aspirations to self-government.

The third is managing the relationships with the rest of the world, chief among them the United States, our principal ally and pre-eminent trading partner.

Economic Security

Canada is prosperous and the economy is chugging along, although economists worry that this owes a lot to Donald Trump’s goosing the U.S. economy, oblivious of his country’s trillion-dollar deficit. When the reckoning comes due, how will Canada fare? Is the Trudeau government prepared?

Trudeau can argue that his policies are growing the middle class. Critics argue that running chronic budget deficits is creating debt for the next generation. Redistribution will not address Canada’s weak productivity performance.

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Since the Legatum Prosperity index began in 2007, Canada has held the consistent rank of eighth of 149 nations, following assessment of factors that include economic quality of life, business environment, governance, education, health, safety, security, personal freedom, social capital and natural environment.

The International Monetary Fund’s (IMF) annual summary (2019) of Canada’s fiscal policy says Canada’s economy – and its management – is good, marked by “a judicious mix of policies” that support “inclusive growth and reduce vulnerabilities in the financial system”.  The federal debt-to-GDP ratio, the lowest in the G7, is expected to decline to 29.1 per cent by 2024, representing its lowest level since 2008-2009. Growth is solid and business confidence is returning with the negotiation of the new NAFTA. Financial institutions are robust and taxation levels keep Canada competitive, although business argues for adjustments to regulatory barriers and openness to foreign investment.

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Trade barriers between provinces remain the unfinished business of Confederation. Internal trade represents roughly 1/5 of Canada’s annual GDP. The Trudeau government has made some headway, including the 2017 Canadian Free Trade Agreement (CFTA) to resolve regulatory barriers and establish more efficient dispute settlement processes. Interprovincial barriers to trade in wine and beer have been eased, but 152 years on, there is still much work to be done.

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Like most Western nations, Canada’s population is aging, which has implications for pensions and health care. Immigration partly alleviates this problem. Canada takes in about one per cent of its population annually – between 300,000 and 350,000 migrants.  One of five residents in Canada was born outside the country.  Most new migrants come from Asia – China, India and the Philippines. In our biggest city, Toronto, almost half the population was born outside of Canada. Our other big cities – Montreal, Vancouver and Calgary – also have a significant percentage of foreign-born residents.

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Immigration is not the hot-button issue that it is in the United States but this reflects a smart selection policy. Canadians were generally proud of Trudeau’s pledge to take in 25,000 Syrian refugees (we eventually took in 60,000). The major parties in Canada support immigration with the emphasis on recruiting migrants with necessary skills. The reaction in Manitoba, Ontario and especially Quebec when U.S.-based refugee claimants crossed into Canada in response to Trump’s changes to U.S. immigration is a warning that public tolerance is not as liberal as Trudeau may think.

National Unity

Shortly after becoming leader, Trudeau threw out of caucus the Liberal senators appointed by his predecessors and vowed to appoint those drawn from an independent advisory body so as to create an independent chamber of sober second thought. Its reports, as with the recent study arguing that cultural diplomacy take front stage in our foreign policy, can become the basis for government action. As prime minister, he followed through and now most of the senators in the upper chamber owe their appointments to Trudeau. It is too soon to determine whether the experiment in having a membership that more closely resembles the Order of Canada has worked or whether it will endure. Senator Peter Harder, who stepped down after serving as government representative, endorses the new approach but observed that having appointees with legislative experience would be useful.

Having won seats in every province and territory in 2015 – no small accomplishment – Trudeau rightly claimed that he enjoyed broad national support.

That provincial governments soon began to shift from liberal to conservative probably says more about Canadians’ penchant for hedging and balancing between the levels of government. National problems are often resolved at first ministers meetings between the provincial premiers and the prime minister. There have been over 70 such meetings since 1945.  Climate change was top of the agenda in Trudeau’s four meetings (2015, twice in 2016 with one that also included Indigenous leaders, and 2018). While the leaders acknowledged the climate problem, there was no consensus on how to manage it.

The Trudeau government imposed a carbon tax on provinces that failed to come up with commensurate carbon-reduction measures designed to help meet Canada’s commitment under the Paris Climate Accord. Saskatchewan, Manitoba, New Brunswick and Ontario all became subject to a federal carbon price after refusing to create their own. While these provinces challenged the federal measure, the courts have ruled that climate change is a matter of “national concern” and Ontario’s chief justice wrote of “the need for a collective approach to [such] a matter”.

Unlike our southern neighbour, Canada has relatively strict gun control legislation that Trudeau promises to further tighten. Canada’s murder rate is closer to that of Europe than to the United States. While there is growing concern about the use of guns in Toronto, The Economist ranked Toronto the fourth safest major city in the world and the safest major city in North America.

National unity, always a challenge, is again strained. While it will never convince the Wexiters, getting the Trans Mountain pipeline built is important not just to get our oil to market but to underline that we can still do national projects in Canada. In Quebec, provincial legislation banning religious symbols defies Trudeau’s inclusiveness. The courts may fix this.

Managing U.S. Presidents

The one relationship that Canadian prime ministers have to get right, opined former prime minister Brian Mulroney, is the one with the American president. Mulroney’s relationship with Ronald Reagan netted the original Canada-U.S. Free Trade Agreement and acknowledgment of Canadian sovereignty in the Arctic. Mulroney’s equally close relationship with George H. W. Bush won the acid rain accord and the North American Free Trade Agreement (NAFTA). Trudeau understood this. It was easy with Obama. It is hard work with Trump.

The greatest test of Trudeau’s foreign policy management is handling Trump and the U.S. relationship. He avoided the easy route – become the anti-Trump – recommended by members of his cabinet, caucus, the punditry and Joe Biden. Instead, he and his team worked hard to establish an entrée into the Trump White House through various channels, including first daughter Ivanka and her husband, Jared Kushner. It worked. Trump likes celebrities and Trudeau and his wife, Sophie Grégoire Trudeau, possess the right celebrity aura.

The relationship was tested often, especially at the 2018 G7 summit in Charlevoix, Quebec, when Trump, who left early for his first meeting with Kim Jong-Un decided that host Trudeau had somehow offended him. Trump tweeted that Trudeau was “meek and mild … weak and dishonest” and withdrew the U.S. signature from the communiqué. Trudeau later said he took it all with a “grain of salt” and persevered.

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Trudeau’s U.S. ambassador, David MacNaughton, was exactly right for the challenge. He quarterbacked a campaign to support Canadian interests, especially through the renegotiation of NAFTA, that focused on Trump’s base in the Midwest – all states whose main trading partner was Canada – as well as in Congress. Traditionally, protectionism and narrow interests emanating from Congress and the states are the source of Canadian headaches.  But allies – in Congress, the statehouses, and governors and mayors who appreciate the importance of mutual trade to job creation – have become a counterweight to Trump’s unpredictability, recklessness and chaotic behaviour.

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Trudeau’s Continuing Foreign Policy Vision

While marred by partisan shots at the Conservatives, Trudeau’s Montreal speech (August 2019), is the most thorough self-examination of his foreign policy as prime minister. Unabashedly internationalist, he re-commits to multilateralism – UN, NATO, G7, G20 – but acknowledges that we operate in a “more unpredictable and unstable world, where some have chosen to step away from the mantle of global leadership, even as others challenge the institutions and principles that have shaped the international order”. He reaffirms the importance of the U.S.’s relationship with Canada: “To say that the U.S. is our closest ally is an understatement. Canada has long benefited from this relationship, and from American leadership in the world. We are friends and partners more than mere allies. We share more than just a border – we share culture, food, music, business. We share a rich history, and we share many of the same core values.”

Without explicitly identifying Trump, Trudeau places responsibility for the current conditions on Trump’s decision to embrace America First. Trudeau points out that “protectionism is on the rise, and trade has become weaponized. Authoritarian leaders have been emboldened, leading to new forms of oppression. Calls for democratic reform, from Moscow to Caracas, are being suppressed. Crises that were once met with a firm international response are festering, becoming regional emergencies with global implications. And all of this is making it more difficult to solve the problems that demand urgent global action. Climate change is an existential threat to humanity, with science telling us we have just over a decade to find a solution for our planet. And technological change is happening at an unprecedented rate, transcending borders, re-shaping our societies, and leaving many people more anxious than ever.”

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Trudeau makes the case for “free and fair trade”, pointing to the renegotiated NAFTA, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Comprehensive and Economic Trade Agreement (CETA). He argues for responsible reform of the World Trade Organization (WTO). He argues that in our “more unstable world, Canada must also be prepared to both defend ourselves and step up when called upon.” He also points to investment in defence and security, especially sea power and new fighter jets, saying, “we make the greatest contribution to global stability when we match what Canada does best to what the world needs most.” He recognizes China’s growing power, “but make no mistake: we will always defend Canadians and Canadian interests. We have a long history of dealing directly and successfully with larger partners. We do not escalate, but we also don’t back down.”

Acknowledging other challenges, Trudeau says: “White supremacy, Islamophobia, and anti-Semitism are an increasing scourge around the world and at home. Gender equality is backsliding. Human rights are increasingly under threat. This is the world we’re in. And so we cannot lose sight of our core values. That means being prepared to speak up, and knowing that sometimes, doing so comes at a cost. But when the courage of our convictions demands it, so be it.” Looking forward, he says: “Canada should place democracy, human rights, international law and environmental protection at the very heart of foreign policy … As some step back from global leadership, we should work with others to mobilize international efforts, particularly by ensuring the most vulnerable and marginalized have access to the health and education they need. Canadians have found strength in diversity and benefited from openness. Financial strain should never hold Canadians back from exploring the world or building positive connections abroad …”

There are other speeches including his Davos speech on Canadian resourcefulness (January 2016) and his speech while he was still in opposition on North American relations (June 2015). Trudeau embraces multilateralism and a progressive agenda on trade and the environment. But the signature themes remain: climate, feminism and gender equality, and reconciliation with Indigenous peoples.

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His UN General Assembly speeches were essentially one-plate affairs addressing migration (2016), then reconciliation (2017), with climate as a side dish for both. The Charlevoix G7 summit (2018) reflected his signature issues with a specific focus on topics like plastics in the ocean. He embraced the Christchurch Call to Action (May 2019) to eliminate terrorist and violent extremist content online.

A spontaneous sense of Trudeau’s global perspective is found in an interview he gave to CBC journalist Aaron Wherry in January 2019 for his bookPromise and Peril: Justin Trudeau in Power. Asked if the issues with China and Saudi Arabia stem from the U.S.’s failure to lead, Trudeau says: “obviously that’s a reflection of part of it … But having the Americans there to enforce Pax Americana around the globe over the past decades made it a little bit easier for all of us who have our lot in with the Americans. And I think what we’ve seen was that if the stability and the rules-based order we’ve built as a world relies entirely on one country continuing to behave in a very specific, particular way, then maybe the world’s not as resiliently rules-based as we think it is. And had it not been the particular circumstance we have right now, maybe it would’ve been something else. At one point you’ve got to decide – well, are you a world, are you countries, are you an international community that believes in those rules or not? And it shouldn’t be fear of punishment or consequences that keeps you behaving right.”

“I mean, the reason you and I don’t go murdering people is not because, ‘Well, it’s against the law.’ It’s because that’s where our values and where our beliefs are. So if we’re going to actually build a better world that is rules-based and solid and predictable, I think there was always going to be a moment where people have to sort of put up or shut up: either you’re standing for the rules even as it gets awkward and difficult and people are unhappy with you because you’re applying the rules. Or you don’t.”

“And I think this is something that we’re obviously going through as a world right now, and people are deciding how they want to position themselves. But I am very, very serene about Canada’s positioning in this and our history that leads us to this. But also our vision for the future that says, if we don’t follow rules and we accept that might is right in the international rules-based order, then nobody’s going to do very well in the coming decades.”

“As the Americans make different political decisions over the cycles, and even if the Americans do re-engage in a way, I think the lesson is that all of us need to be a little more rigorous in the way we stand for and expect and push back on others who are not following the rules that we abide by and accept. I think this is probably a moment that, again, in hindsight, fifty, a hundred years from now, we’ll say, ‘Yeah, this was a moment where people had to decide whether we do believe in an international rules-based order or not.’”

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Then-Foreign Affairs minister Chrystia Freeland gave the government’s definitive foreign policy speech in 2017. It was erudite in its defence of liberal internationalism, robust collective security and the rules-based system, arguing that Canada is an “essential country” in that defence. She would champion the passage of Magnitsky legislation (2017) enabling Canada to sanction, impose travel bans on and hold accountable those responsible for gross human rights violations and significant corruption thus ensuring that “Canada’s foreign policy tool box is effective and fit for purpose in today’s international environment.” It has since been used to sanction individuals notably those from Venezuela, Myanmar, Russia, South Sudan and Saudi Arabia.

The Freeland speech was much more digestible than her predecessor Stéphane Dion’s “ethics of responsible conviction” remarks on foreign policy at the University of Ottawa (2015). But while Mr. Dion’s remarks were wonkish, they did make the sound observation that severing ties with governments we do not like is not effective diplomacy. In the case of Iran, that the Harper government declared a terrorist state in 2012,  Dion observed that “severing of ties with Iran had no positive consequences for anyone: not for Canadians, not for the people of Iran, not for Israel, and not for global security.” Of Russia, Dion sensibly observed that as long as we refuse to engage Russia through diplomatic and political channels, we preclude any opportunity to advance shared interests in the Arctic or to support Ukraine through negotiations. Unfortunately, these sensible suggestions were not picked up by Ms. Freeland, who on Russia is shaped by anti-Communism (natural given her Ukrainian heritage and the fact the Russians declared her persona non grata in 2014).

Chrystia Freeland’s feistiness aggravated Trump, who labelled her a “nasty woman”. But she effectively worked her counterparts – first, Rex Tillerson, and later, Mike Pompeo – as well as Congress. Early on, as International Trade minister, she had charmed GOP Senate Agriculture chair Pat Roberts, and thus helped resolve the decade-long country-of-origin dispute. This dispute, essentially over access for Canadian and Mexican beef and pork, had also earned her the friendship of Mexico’s then-secretary of Economy, Ildefonso Guajardo, with whom she would work closely during the NAFTA renegotiations. Freeland played a key role in securing CETA with the European Union (2017) and the 2018 CPTPP.

The CETA and CPTPP negotiations were inherited from the Harper government. While there remained some residual wariness about trade deals in his cabinet and caucus, Trudeau understood that our nation’s trading interest is best served by opening new markets and diversifying Canada’s trade dependence – 75 per cent of our exports – on the U.S.

Elements of the progressive trade agenda are reflected in CETA, CPTPP and the renegotiated North American free trade pact, as well as bilateral trade deals with Chile and Israel, but its limitations and the lesson of overreach became clear. China’s Premier Li Keqiang gave labour and Indigenous rights the back of his hand, and plans for a closer economic partnership with China never materialized. They are now on hold in the wake of the controversy involving Huawei executive Meng Wanzhou’s extradition, which has seen Canadians held hostage and our food exports curtailed.

There was too much virtue-signalling. Relations with China, Russia and Saudi Arabia are in the deep freeze. Relations with Asian nations still need a strategy and more engagement. The magical mystery tour to India chilled relations, not because of Trudeau’s dress, but on security issues with Prime Minister Narendra Modi.

Wobbliness at the Da Nang APEC summit on CPTPP negotiations annoyed fellow leaders. Relations with Japan’s Shinzo Abe were patched up with closer defence co-operation. Despite his geniality, Trudeau’s close fellow-leader relationships are few:  Irish Taoiseach Leo Varadkar, New Zealand Prime Minister Jacinda Ardern, and perhaps France’s Emmanuel Macron.

The Trudeau government is behaving as a helpful fixer in Ukraine, the Koreas, Venezuela, on migration and climate issues, and at the WTO. Relations with Mexico, our third largest trading partner, improved after he lifted a pernicious visa requirement. And with the one relationship that really matters – that with the U.S. –Trudeau and his team have successfully managed Trump, fending off his tariffs, while preserving Canada’s preferred access to the U.S. market.

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Security beyond our Borders

Multilateralism is integral to Canadian diplomacy. By working with like-minded nations to sustain and advance the rules-based order, we get much more leverage from our place as a middle power. Great powers can always throw their weight around. The age-old concert of great powers reduces relationships to the big dictating terms to the small. When adroitly employed, multilateralism levels the playing field. It is especially useful in time of crisis and in addressing global challenges like crime and terrorism, migration, climate change and pandemics.

After more than a decade of often frustrating experience in Afghanistan (2001-2014), Canadian troops are deployed around the world in support of collective security and peace operations.  Most of our deployments are with the North Atlantic Treaty Organization (NATO). Canada leads a NATO brigade in Latvia, and our aircrafts, warships and submarines patrol the waters and the skies of the Atlantic and Mediterranean as part of NATO’s assurance and deterrence initiatives. There are Canadians in Iraq, again under the NATO umbrella and as a member of the Global Coalition against Daesh. Canadians wore the blue beret of UN peace operations in Mali (2018-2019) and are now in Uganda (2019-2020) with a standing commitment (2017) to supply more peacekeepers as required. Canadian air and sea forces support enforcement of the UN’s sanctions on North Korea. A half century after the armistice, we continue to contribute to the UN peace operations team in Korea’s demilitarized zone (DMZ) and now in sanctions enforcement on the high seas.

The Trudeau defence policyStrong, Secure and Engaged (June 2017), promised strength at home, security within our continental frontiers and engagement abroad. There would be re-involvement in UN peace operations, building on previous, sometimes mythologizedexperiences in Suez (1956), in Cyprus (1964-93), in the Balkans (1991-2004), in Afghanistan, and still currently in the Congo and Syria’s Golan Heights. Trudeau hosted a ministerial conference in Vancouver (2017) that resulted in The Vancouver Principles on Peacekeeping and the Prevention of the Recruitment and Use of Child Soldiers. But while preserving ongoing commitments, there were only two new peace operations deployments: the concluded mission in Mali and now in Uganda. While useful, it was less than what was expected, and as Jocelyn Coulon points out, more continuity than break with the Harper Conservatives.

There were commitments to rearmament, with more money and forces for the defence of Canada. The Canadian navy and coast guard will receive a new ship every year for the next 20 years. In assessing the new defence policy after two years, CGAI’s David Perry concluded that the Trudeau government is “mostly delivering”, although spending on equipment and infrastructure has lagged behind projection because of contingencies not being used, project efficiencies, industry not delivering on schedule and project delays internal to government.

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Election 2019

The October 2019 election was short, nasty and vacuous. Charges of hypocrisy were laid against Trudeau for appearing in black-face and brown-face. Conservative leader Andrew Scheer was also accused of hypocrisy for holding dual Canadian-American citizenship while previously criticizing others who held dual citizenship. There were only four debates, with Trudeau participating in just three of them (two French language and one English). The foreign policy debate was cancelled.

When the election ended, Scheer’s Conservatives won the most votes: 34.4 per cent versus 33.1 per cent for the Liberals, with Jagmeet Singh’s NDP at 15.9 per cent, Yves-François Blanchet’s Bloc at 7.7 per cent and Elizabeth May’s Greens at 6.5 per cent. Yet the Liberals formed a minority government, winning 157 seats to the Tories’ 121, the Bloc’s 32, the NDP’s 24 and the Greens’ three, with Wilson-Raybould as the sole independent.

If Trudeau pulled his party to a majority in 2015, pollsters said he was a drag in 2019. But so was Scheer, and within weeks he announced he would be stepping down. May also announced it would be her last election as the Greens’ leader.

Shut out in Alberta and Saskatchewan, Trudeau said that attention to regional needs would be a top priority. He followed up with a series of individual meetings with provincial premiers. As deputy prime minister and Trudeau’s likely successor, Freeland takes on federal-provincial relations and is charged with organizing a first ministers meeting in early 2020.

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Alberta Premier Jason Kenney’s request for a “fair deal” is reasonable and his argument that a strong Canada needs a strong Alberta is compelling. There will be some rebalancing in fiscal sharing arrangements, although the loser is likely to be tomorrow’s taxpayers who inevitably will have to pay the piper for deficit spending.

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Foreign Policy Challenges Ahead

In Monty Hall’s long-running Let’s Make A Deal, contestants faced three doors. Behind one was a car and behind the other two were goats. For Trudeau, the goats are the continuing challenges in our relationships with the U.S. and China while the prize is winning a seat on the UN Security Council – a vindication of his commitment to internationalism.

Unfortunately for Trudeau, he has to manage all three doors.

Relations with the U.S. always come with irritants. What is remarkable is how well it works, even with Trump. Freeland stays responsible for the U.S. file. She has managed this file very well and her contacts are excellent, but splitting ministerial responsibility for the U.S. from new Foreign Affairs Minister François-Philippe Champagne will cause headaches down the road. It will complicate life for our yet-to-be-named ambassador in Washington where our embassy is effectively an adjunct to the Privy Council Office and source of advice to the Prime Minister’s Office. Effective ambassadors also have relationships with ministers and premiers.

Washington is all about power and politics and the political class – whether on Capitol Hill or in the Administration. They prefer dealing with those who understand politics, a skill not generally found in professional diplomats. Our next ambassador will require political instincts, gravitas and knowledge of the U.S. Former ministers or premiers who have these qualities include Rona Ambrose, Jean Charest, Peter Mackay, John Manley, Anne McLellan, Bob Rae and Brad Wall (although some of these may soon be seeking the Conservative leadership). To succeed, our new ambassador also needs the confidence of the prime minister. Otherwise the White House will go direct to the prime minister’s office. The ambassador should also work closely with the U.S. ambassador in Ottawa – as quarterbacks in the field, the two ambassadors can resolve a lot of the transactional problems.

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The Trump administration expects more from Canada on defence and security. For Trump, the metric is spending two per cent of GDP. An increased NATO commitment is the first instalment. Lost in the foofaraw around an off-mic comment dissing Trump at the London summit (December 2019), is the fact that Trudeau committed more naval and air support to the 70-year-old security alliance.

What the Americans really want is for Canada to exercise the sovereignty it claims in the Arctic. In practical terms, this means upgrading the North Warning System.

Fixing the Safe Third Country Agreement with the U.S., promised in the throne speech, is another challenge. Porous borders feed populism and help breed legislation like Quebec’s Bill 21. Requiring potential refugees to apply for sanctuary in the country where they first land – the Safe Third Country Agreement – was one of the accomplishments of the Chrétien government when then-Foreign Affairs minister John Manley negotiated the “smart border” accord with Homeland Security’s Tom Ridge. The Trump administration should go along; the U.S. wants a similar agreement from Mexico.

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Managing the trading relationships, especially trade diversification, is another permanent challenge; Pierre Trudeau pursued ‘counterweights’ and the ‘Third Option’ to reduce trade dependence on the USA. Freeland’s first assignment was negotiating the new NAFTA. The prerequisite for the Trump administration was to achieve legislative passage through the Democrat-controlled House of Representatives. The major changes – tougher enforcement on environment and labour – were aimed at and swallowed by Mexico, although they did wrest a dispute settlement panel provision that will serve Canadian interests. The other changes – patent protection for biologic drugs consistent with the CPTPP and steel made in North America – did not disadvantage Canada. Having passed the House, it should sail through the Senate after the impeachment proceedings. It should also get through the Canadian Parliament.

While experts question the gains in the new NAFTA with its increasingly managed trade, it does provide the required stability that foreign and Canadian investors expect. Canada’s exports are the fourth most concentrated by destination out of 113 countries. Can we convince Canadian business to use the new transoceanic trade relationships? How much collateral damage will the ongoing Sino-U.S. trade war inflict, and if it is resolved, will we find ourselves at a disadvantage vis-a-vis our American competition, especially when it comes to our agri-food industry?

The second major test is China and the requirement for realism in dealing with a rising superpower that is increasingly aggressive abroad and repressive at home.

The government’s handling of the Meng affair and its fallout is tactically suspect. Elevating the extradition to the sanctity of “rule of law” has confused the Chinese and left us with little room to maneuver.  Trudeau’s request of Trump not to sign any agreement with China until the hostages are freed would seem to misunderstand Trump and his art of the deal, while for the Chinese we simply look weak. It plays to their evaluation of Canada as a vassal state of the U.S. – a running dog of U.S. imperialism. Jean Chrétien, who understands China, is likely right when he characterizes our China debacle as “a trap that was set to us by Trump, and then it was very unfair, because we paid the price for something that Trump wanted us to do.”

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If the Trudeau government needed reminding that it no longer enjoys a majority, the Conservatives introduced – on the one-year anniversary of China’s detention of hostages Michael Spavor and Michael Kovrig – a motion creating an all-party parliamentary committee to assess and monitor Canada’s relations with China. Despite Liberal opposition, the resolution passed with the support of the NDP and Bloc Québécois. If they can park partisanship at the door, the all-party committee might just achieve a realistic China policy that all can support. For too long, our China policy has teetered between the romantic and the hostile, depending on whether the government is Liberal or Conservative. Its only common thread was a cloak of government secrecy. Inconsistent and opaque policy serves neither our interests nor our values.

The third major test will come in June 2020 when Canada competes with Ireland and Norway for a two-year seat on the United Nations Security Council. The fatalists may be right about us losing, but a second loss will be traumatic for the government and a shock to Canadians. Losing in 2010 could be rationalized as the Harper government having run a lackluster campaign due to ambivalence about the UN and taking perverse pride in the mantra “we don’t just go along to get along.”

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To win will require more active campaigning by ministers and Trudeau in Eastern Europe, Africa, Latin America and the Caribbean, and drawing on our ties within the Commonwealth and la Francophonie. We have a good ambassador in Marc-André Blanchard and a credible platform built around combating climate change, promoting gender equality, promoting peace and economic security, and a commitment to multilateralism.

And if we win, then we will have to deliver on our promises. This will mean more resources – people and money – for our UN missions. The Trudeau government has gotten away with little investment in our foreign affairs. If we want to be effective it also means we will need to open embassies in places like Pyongyang and Teheran. If their governments are corrupt or abusing human rights, we should use our Magnitsky sanctions on individuals rather than shutting down our embassies. Diplomatic relations are not a seal of approval but rather the means by which we conduct business, most of it having to do with people-to-people transactions – visas for students, migrants and business as well as the classic consular work of helping Canadians in distress – in addition to the high politics. If we want to provide a Canadian perspective to a situation, it starts with being there – having trained diplomats who look, listen and when necessary speak out to advance Canadian interests.

“Canada is back” is a conceit. The Trudeau record does not match the rhetoric: Canada still falls short (1.31 per cent of GDP) of the NATO target of two per cent of GDP on defence spending. Our international development assistance (0.264 per cent of GDP) remains well short of the 0.7 per cent endorsed by the G7. Mulroney got it right when he described our spending as a “disgrace” and asked: “How are you going to assert your leadership skills when you enter a room and somebody says, ‘Hey, you haven’t paid your bills’.”

If we want to make a difference – to achieve a progressive agenda, to diversify trade, to be a credible security partner – then the Trudeau government is going to have to invest more in defence, in development and in its foreign service.

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Concluding Observations

Born on Christmas Day 1971, this charismatic son of the equally charismatic Pierre Trudeau initially held Canadians and the world in thrall. A natural cheerleader who likes to be liked, Justin Trudeau is at his best when the going is good. When the going gets tough, Trudeau is sometimes indecisive, at a loss about what to do next. Unfortunately for Trudeau and for Canada, these are treacherous times. We live in an age of populism and protectionism. Democracy is on the downslide. The rules-based order with its internationalist norms are broken with impunity. This breakdown only seems to encourage more bad behaviour. Democratically-elected  leaders are now as likely to look like Trump as Trudeau. Mr. Trudeau is learning firsthand what British prime minister Harold MacMillan warned U.S. president John F. Kennedy what was most likely to blow governments off-course: “Events, dear boy, events.”

Identity politics is central to the Trudeau team’s playbook. But what politicos say plays domestically can back-fire internationally. The problem with the shambolic magical mystery tour to India was not in the costume changes but the setback to relations with India when it appeared that we put domestic politics ahead of what India saw as their legitimate security concerns.

All governments focus on style and stagecraft, but the Trudeau team takes it to a new level through use of social media. But selfies, tweets and celebrity status are volatile. The once APEC “hottie” is caricatured for dress-up involving black- and brown-face, episodes that occurred long before he entered politics. Trudeau is no racist, but the incidents and his initial response when challenged on them raised questions about his judgment for which he paid a price in the 2019 election.

Some prime ministers are transformational. Fewer are consequential. Pierre Trudeau was both. Whether Justin Trudeau will match his father is still to be determined but no one is forecasting sunny ways anymore.

Leadership depends on winning respect through achievements and Justin Trudeau has led on issues of climate, diversity, and migration. He has well managed our most important relationship, that with the USA, despite the challenges of Donald Trump. Building on Mr. Harper’s initiatives, he has opened the way for trade diversification across the Pacific and Atlantic, while preserving freer trade within North American. He has made necessary and overdue investments in defence, but procurement must be fixed. We need to invest more in development and in diplomacy. Then we might be able to claim that ‘Canada is back’.

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Further reading

Two excellent accounts offer differing interpretations of Justin Trudeau as prime minister. CBC journalist Aaron Wherry’s Promise and Peril: Justin Trudeau in Power (2019) benefited from insider access, and this is perhaps why his is the more sympathetic account. National Post columnist John Ivison’s The Education of a Prime Minister (2019) is thorough and more critical of Canada’s 23rd prime minister. Jocelyn Coulon, a former special assistant to Stephane Dion, has written Un Selfie avec Justin Trudeau (2018), a critical account of Trudeau’s foreign policy.  For scholarly evaluations of Trudeau’s foreign policy, look to the essays in the annual Canada Among Nations published by Carleton University, and now Canada in International Affairs, published by Springer, notably Justin Trudeau and Canadian Foreign Policy (2018).