Yes, Canada has every right to be mad at the Trump administration for reneging on the current trade agreement previously signed by then President Trump, imposing new tariffs on Canadian exports to the U.S., and promoting the concept of a 51st state. However, I can’t help thinking that we had a lot to do with creating the current crisis situation.
Actually years ago, I briefly thought that there might be some merit in Canada becoming part of the U.S. After all, with the signing of the North American Free Trade Agreement (NAFTA), our economy became even more integrated into that of the U.S. Take the automotive sector for example, it was and still is the most integrated industry under past and current trade agreements between the two countries. The so-called Auto Pact has had a longstanding history and basically prevented Canada from developing its own automotive manufacturing sector. Perhaps it made sense given that Canada’s population is one tenth that of the American population and our market also became flooded with Asian and European cars. Basically, we are non-competitive. However, no one objected given the workings of the global economy, which no doubt benefited the pocketbooks of Canadians through access to cheaper goods.
Other Canadian sectors such as lumber, steel, aluminum and minerals all grew primarily due to the access to American markets. Our reliance on these markets may have made us a little lazy and not overly innovative in some areas, especially as it pertains to other trading blocs. Internally, intraprovincial trade barriers further exacerbated the lack of industrial growth and weaker productivity within Canada itself. Professionals and trades people could not move easily between and among provinces due to labour mobility restrictions. One could also have done a lot more to promote tourism within Canada and to build the required infrastructure for a modern tourism industry.
In more recent years, the modern world came to see the ever increasing need for rare minerals to support the growth of computerized technologies. Both Canada and the U.S. became overly reliant on China which supplies about 80% of the much needed processed rare minerals used in such areas as electronics. Canada has long been aware of its large sources of rare minerals, but has done next to nothing in developing processing capabilities.
As for energy, Canada has major oil and gas reserves. However, previous Canadian governments have stalled numerous potential projects such as the construction of pipelines to transport oil and natural gas to British Columbia ports for export to Asia and the U.S. west coast. The expansion of pipelines within Canada has also been negatively affected by intraprovincial disputes over economic benefits, indigenous and environmental issues.
In terms of our cultural sector, Canada has become a major cheap source for the production of American films and television series. However, except for the support of the Canadian Broadcasting Corporation (CBC) and various federally subsidies and tax breaks, the growth of Canadian content has been somewhat limited. Instead, Canada became very dependent on American content as cable and steaming services steadily grew. Quebec is the exception primarily because of the need to supply French content within the province through Radio Canada and other Quebec sources. Moreover, we need to do a lot more to support Canadian culture, particularly through the CBC.
Today, I am a proud Canadian and object to Trump’s assertions about a northern 51st state. I have seen positive social-economic trends in Canadian society. With what is happening to the apparent attacks by the Trump administration on all aspects of American democracy, I clearly prefer to remain Canadian. However, I would argue that much of what is happening economically is partly, if not mostly, our own fault. As Canadians, there is a lot more that we can do to strengthen our nation. This might indeed be a significant reversal of fortune. So, stop complaining and let us demonstrate that Canada has a future of opportunities, with or without past ties to the U.S.
FROLITICKS 