Prime Minister Justin Trudeau is rejecting calls for a more belligerent response to American protectionism, in the hope that a consensual approach will spoil relations damaged during Donald Trump's presidency. Trade Minister Mary Ng said in an interview this week that she is focusing her efforts with the new Biden administration on mutual relationships despite the initial US hiccup, which is prone to further fractures
The rocky start occurred when President Joe Biden revoked a permit for the Keystone XL pipeline, a move that prompted the leader of oil-rich Alberta to challenge him under the old North American Free-Trade Agreement. Tensions escalated when government administration strengthened the "Buy American" provision for contracts. "I don't think getting into a trade war with America.
Officials with integrated economies Trudeau welcomed Biden's arrival at the White House in the post-Trump era with years of relative stability with Canada's largest trading partner. The two countries exchanged around $ 2 billion in good and services every day in 2019. Their economies are so integrated that the average automobile manufactured in North America crosses the United States-Canada border.
A key part of Trudeau's strategy is to convince the president that protectionism will harm American businesses dependent on Canadian products. "It's the result that's important here," Ng said. "The result is that there is no impact on Canadian businesses and Canadian workers and we continue to have access to the market from which our supply chain is not disrupted." The two countries are one.
The two countries also are divided on the way to power North America’s green-energy transition. Trudeau tried unsuccessfully to convince the new administration that Canadian crude may be a cleaner option thanks to his government’s carbon tax and stringent environmental regulations. TC Energy Corp.’s Keystone XL would ship quite 800,000 barrels of crude each day from Alberta’s oil sands to U.S. refineries.