(Ottawa) The Trudeau government intends to take a more combative approach to American protectionism.
This is what emerges from the mandate letters made public Thursday afternoon, nearly three months after his election. He calls on Finance Minister Chrystia Freeland, International Trade Minister Mary Ng, and Public Services and Procurement Minister Filomena Tassi to take a firmer approach.
Mme Freeland will, in collaboration with her colleague at International Trade, “put in place a reciprocal sourcing policy that will ensure that goods and services are sourced from countries that provide Canadian businesses with a similar level of market access.” ”
Prime Minister Justin Trudeau’s directives to Minister Ng are unequivocal: “In addition, you will deal with bilateral trade issues and protectionist measures with the United States, particularly with regard to public procurement and in the sectors of automotive, energy and agriculture. ”
Minister Tassi will be tasked with continuing to modernize “procurement practices” of the government, “which includes balanced procurement opportunities with Canada’s trading partners”.
“Of course there is a more aggressive, more intentional approach to defending Canadian interests,” observed Robert Asselin, the first vice-president of the Business Council of Canada and former advisor to the former finance minister. Bill Morneau.
“This is consistent with the last visit to the United States where the government sounded the alarm about protectionist measures,” he added. His organization wants the spirit of the Canada-United States-Mexico (CUSMA) Free Trade Agreement.
US President Joe Biden has put forward a “Buy American” plan that contains a tax credit of up to $ 12,500 for the purchase of zero-emission vehicles made in the United States. Canada is concerned about the repercussions on its auto industry.
Lumber absent
However, while Minister Ng must try to protect the auto, energy and agricultural sectors, her letter makes no mention of the forestry industry. Yet the United States recently doubled its countervailing duties collected on Canadian softwood lumber. They went from an average of 8.99% to 17.9%.
“I find that absolutely absurd,” denounced the member of the Bloc Québécois, Simon-Pierre Savard-Tremblay. “It is downright to act as if it does not exist, to ignore the problem completely even if when we challenge the government on it, we are told that it is an important question. ”
The Bloc Québécois also notes a flaw in supply management. Minister Ng’s mandate letter does mention “full and fair compensation” for the breach opened by CUSMA. Mr. Savard-Tremblay believes that it should also have contained a sentence on the future breach that could be opened with the negotiation of a free trade agreement with the United Kingdom.