Canada must act strategically in the face of trade uncertainty
This week Canadians have faced the very real prospect that their paycheques could be in danger and their economy could be thrown into recession by the stroke of a pen in another country. While timelines may be uncertain, the threat of tariffs is not. Canada must seize this moment to strategically position ourselves better for the future.
The Business Council of Alberta believes this requires three key actions:
- Free trade with the United States must continue to be a Canadian economic priority
For decades, free trade with the U.S. has been a cornerstone of Canada’s economic success. This relationship has been overwhelmingly positive for both nations, and it is in our mutual interest to preserve it. To do so, we must address irritants in the relationship—such as defense spending, immigration and border security, and drug flows—that risk undermining this critical partnership. We also have an opportunity to reinforce our role in North American security–specifically making the case for how Canadian energy acts as a economic and security subsidy to the United States.
- Ensure Canada’s responses are measured and future-proof
Canada must be ready to respond, but any action taken must be regionally and industrially fair, while avoiding measures that harm us now and in the long term. The Council does not, and cannot, support measures that make our industries even more uncompetitive, or create incentive for the U.S. to find alternative sources of supply long-term.
- This is a wake-up call to do better at home
Canada must bolster its economic and trade position through projects and policies that drive long-term prosperity. We must accelerate infrastructure projects, including pipelines, port expansions, and air cargo capacity; strengthen inter-provincial trade to reduce dependency on the U.S. market; and build new partnerships with other global trading partners to ensure resilience. We must also get rid of energy caps, electricity regulations, and taxes on capital that make Canada less competitive.
The reality is that Canada is in this vulnerable position because current federal policy has not supported projects that would allow us to get our valuable products—particularly energy—into global markets beyond the United States. This must change.
Canada’s future prosperity depends on a strong, strategic response. We urge Canada’s leaders to act decisively and thoughtfully in these ways to ensure we protect Canadian jobs, families, and our economy.
See direct statement from BCA President, Adam Legge
The Business Council of Alberta